Well in one of your videos (bonds vs notes vs bills) I recollect you stating that bonds are generally long dated rather than notes. However in this video you state 30yr notes - are notes really so long dated ? Bit confused with the contradiction here.
vp technically yes, but i think he just uses the terms interchangeably. He shouldn’t but when u put the duration, people will know what you’re talking about.
Paddy, what's your opinion on Public Banking within a free-market system? That seems to me like an inevitability once the current financial system has run its course.
Fed is out of options, we need to restructure the tax code, close the loopholes for corperations, increase tarriffs and require companies that sell 90% in the US to hire 90% in the US.
Hey Buddy, nowadays, I am pretty much drunk 24x7, jusht woke up this morning to get myself a beer ..hic! Operation twist sounds like we need to apply torsion to Heli Ben's cojones and finally maybe the cervix as well!
What baloney! @1:38 'As maturity extends, you tend to have to pay more'.. Really? Pay annually at a higher rate, you meant, surely, not that you 'pay more'! Yield curves can even be jumped or 'inverted'. So 'pay less as maturity rises'? You missed the critical point. It's the annual rate for different maturities, not paying more or less as it can show a dip too if future rates are expected to fall.
Till now, I used to think that flattening of the curve means the short & long interest rates coming closer. Here I find a new outlook.Thanks Paddy. Investopedia draws the flat curve as totally flat - a straight line parallel to the maturity axis. However, your explanation seems more plausible because even here, the short & long rates are coming closer, implying the curve is flattening, though not necessarily flat. So, probably a flat curve is different from a curve flattening. Do you think the same Paddy?
Hey Paddy, nice work, the only problem or fallacy I see in your explanation about the yield curve in relation to banks is that banks don't have a great financial motive to loan because more than 80% of most major banks' profits are from trading (derivitive prop trading cds etc) You know, the things that wreck the markets/economy in the first place. Plus banks see the loans as not only not as profitable, but riskier given the job market and specific regs that went to far in the other direction
I know little of economy. I don't want to know anything about economy, because it involves the concept of "making money with (just) money", at which point my eyes glaze over and I start drooling. Nevertheless, I enjoy your explanations very much, learning some things about economy, needing a drink.
