Who's the biggest thief on the planet?
What do they get to borrow at?
Now, what's the S&P 500 yield?
The average of the dividend paying stocks is something like 3.75% Average of all is 2.75%.
You figure the arbitrage and then add in a bit of governmental larceny.
http://www.icmarc.or...idendYield.html
http://www.indexarb....ldSortedsp.html
Mark
Think Like a Criminal?
Started by
OEXCHAOS
, Jan 01 2009 12:18 PM
16 replies to this topic
#1
OEXCHAOS
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Mark S. Young
Posted 01 January 2009 - 12:18 PM
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#2
zoropb
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Posted 01 January 2009 - 12:52 PM
Who's the biggest thief on the planet?
What do they get to borrow at?
Now, what's the S&P 500 yield?
The average of the dividend paying stocks is something like 3.75% Average of all is 2.75%.
You figure the arbitrage and then add in a bit of governmental larceny.
http://www.icmarc.or...idendYield.html
http://www.indexarb....ldSortedsp.html
Mark
Here is the chart *I forgot who published it thanks who ever it was*... That shows the dividend yield to bond yield prior to the crossover in 1958. We could now be going back to this relationship and the current relationships post 1958 crossover could now be over. After being burned twice since 2000 perhaps most folks will stay in bonds for way longer than most care to think.
Just showing the other side not trying to be a pain Mark just that everything so far since this drop has been back to the 1929 type we may keep this in mind just in case it becomes so.
Z
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#3
humble1
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Posted 01 January 2009 - 12:54 PM
a great example (though not your point) of the trick ms. market played at the late 1994 mania lift-off. look at those tasty treasury yields! why buy stocks? then up we go from spx 443 to spx 1553 and beyond.
the other trick was when to sell them.
Edited by humble1, 01 January 2009 - 12:56 PM.
#4
U.F.O.
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U.F.O.
Posted 01 January 2009 - 01:59 PM
Any FED arbitrage of their borrowing costs vs the dividends generated by the equity ownership if their newly acquired financial stocks is secondary to the capital gains potential they could coup if the markets improve from here. Think about it. They're long bank/insurance stocks and hold warrants that could triple in value or more. I'm a seller when the FED's a seller. Right now they're trying to inflate (pump). Don't fight the FED. It's a losing proposition.
U.F.O.
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#5
LongShort168
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Posted 01 January 2009 - 03:46 PM
Don't fight the FED. It's a losing proposition.
U.F.O.
that's a BIG illusion
didn't the fed call housing bottom, financial bottom and economy bottom? (a long time ago?)
one would lose BIG time if one follows the fed.....
#6
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U.F.O.
Posted 01 January 2009 - 03:50 PM
"didn't the fed call housing bottom, financial bottom and economy bottom? (a long time ago?)"
Not anywhere that I've seen. What are you reading that I'm not?
U.F.O.
Not anywhere that I've seen. What are you reading that I'm not?
U.F.O.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~
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#7
Rogerdodger
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Posted 01 January 2009 - 04:32 PM
Greenspan: Housing market worst may be over
Oct. 9, 2006
Former Fed chief sees applications for mortgages bottoming out.
"There is a good chance of coming out of this in good shape, but average housing prices are likely to be down this year relative to 2005. I don't know, but I think the worst of this may well be over," he added.
Greenspan said the fall of communism, not sharp interest rate cuts by the Fed, was behind the housing boom in the early part of the decade.
MSNBC LINK
Edited by Rogerdodger, 01 January 2009 - 04:36 PM.
"Nature's Failure to Function in a 'Predictable Way'... 500 years ago?"
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#8
U.F.O.
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U.F.O.
Posted 01 January 2009 - 04:42 PM
I'm talking about fighting FED liquidity adds, not some soundbite from AG 3 years ago. I'm talking about what happens when too much money in a financial system starts to gain traction. That's what I'm talking about fighting. The FED is now the ultimate insider and they control the pursestrings that move their own market. The FED is now the stock market.
U.F.O.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~
~Benjamin Franklin~
#9
Rogerdodger
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Posted 01 January 2009 - 04:48 PM
The FED is now the ultimate insider and they control the purse strings that move their own market. The FED is now the stock market.
I can't argue with that...unfortunately.
"Nature's Failure to Function in a 'Predictable Way'... 500 years ago?"
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#10
U.F.O.
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U.F.O.
Posted 01 January 2009 - 04:53 PM
It's not unfortunate if you're positioned accordingly.
U.F.O.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~
~Benjamin Franklin~
