For SF: QE2 is Over, What's Going with Treasury Rates?

B

Bonestorm

Thrillhouse
Seems they're still pretty damn low, no? And that's notwithstanding the present dumbassery over the debt ceiling. I thought you said that QE2 was artificially keeping demand up and rates down. That doesn't appear to be the case. What gives?
 
David St. Hubbins said:
Seems they're still pretty damn low, no? And that's notwithstanding the present dumbassery over the debt ceiling. I thought you said that QE2 was artificially keeping demand up and rates down. That doesn't appear to be the case. What gives?
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Do try to pay attention to the markets Dung.... what has been happening over the past two weeks in Europe? Any idea?

Have you happened to notice what has been going on in the equity markets for the past two months?
 
wow turbo-libs are funnier than SNL, they will say and economic principle is invalid if the data don't match.

Hello dung, All of Europe is about to default

It's called flight to quality
 
The Dude said:
wow turbo-libs are funnier than SNL, they will say and economic principle is invalid if the data don't match.

Hello dung, All of Europe is about to default

It's called flight to quality
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and we have a winner.... poor Dung... thought he had a 'gotcha' moment and instead made a fool of himself yet again.
 
The Dude said:
wow turbo-libs are funnier than SNL, they will say and economic principle is invalid if the data don't match.

Hello dung, All of Europe is about to default

It's called flight to quality
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I understand full well. QE2 didn't artificially decrease rates. Market forces are responsible. That was my point.
 
Superfreak said:
LMAO.... you do understand that QE2 was an ARTIFICIAL market force....don't you? It created demand that would otherwise NOT have been there. You fucking moron.
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You claimed that the "ONLY" reason that Treasury rates were so low was Treasury artificially driving down rates through QE2. If that were the case, rates would have significantly increased with the end of QE2. But that didn't happen. Instead, rates dipped further after QE2 ended. Here's what you said:

Superfreak said:
the ONLY reason our interest rates are that low is because the Fed is playing games with QE1, QE2 and other shenanigans .... that's right.... I called shenanigans
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David St. Hubbins said:
You claimed that the "ONLY" reason that Treasury rates were so low was Treasury artificially driving down rates through QE2. If that were the case, rates would have significantly increased with the end of QE2. But that didn't happen. Instead, rates dipped further after QE2 ended. Here's what you said:
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Note to moron: You do realize market conditions can change, do you not?

you had hundreds of billions in artificial demand. When you increase demand, what happens to the price? With regards to Treasuries, when the price goes up.... what happens to the yield?
 
The Dude said:
amazing self burn dung
good teaching sf
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Get the fuck out of here with that garbage. SF claimed that the ONLY reason that rates were hovering around 3% was QE1 and QE2. Well, now that QE1 and QE2 are over rates are at around 3%. It's nonsense.

I conceded that QE1 and QE2 had an impact, but pretending that they were the ONLY reason Treasuries were at historically low rates is nonsense on stilts.
 
The Dude said:
I'm more than sure he meant main reason.
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No, I meant at that time that the ONLY reason the rates were remaining low was due to the artificial demand of QE1/2. Had that demand not been there, rates would have been higher. What dung fails to grasp is the artificial demand of QE2 has now been placed by real market demand due to the flight to quality. He is pretending that market conditions haven't changed in any other aspect than QE2 ending, which is blatantly false.
 
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