Bond Market Braces For $ 1 Trillion Tsunami Of Treasuries This Year

[g5000]

The debt has to do with spending. NOT Tax Cuts or

Medicare is what I do boy

So this is a really easy way to tell a troll. My reference to Medicare and Medicaid was purely along the lines of the cuts they will face beginning in January next year. So this troll here just interjects a non-sequitur, one he knows he cannot prove, as some sort of counter-argument to the fact that the tax plan he supports increases the deficit so much that automatic cuts to Medicare and Medicaid are triggered.

Rather than just not respond, his compulsion is to make everything about himself. We all see how poorly that works out for his argument.

So what does you "doing" Medicare have to do with the cuts to the program your dumb tax plan causes? Nothing. So why respond at all? Ego.

Eat some Tide Pods and go away.

When Doc says Medicare is what he does, he just means he bills the government. He doesn't know fuck-all about the government.

Sure thing "Tax Cuts" are "expenditures" boy.

Spending which raises tax rates. Yep. Spending which steals from every taxpayer to pay for it.

Econ 101, tard.

Tax Cuts =Spending, yes or no boy.

If we eliminated tax expenditures, we could LOWER tax rates for EVERYONE.

Econ 101, kiddo.

 

[The Derp]

Try to find any President other than Obama who had a deficit bigger than Trump's $666 billion.

Go ahead.


I'll wait here.

Well, you could argue that Bush's last deficit was the highest ever.

Good point.

The last time the GOP controlled both houses of Congress, they doubled our national debt.

I am convinced the pseudocons don't give a flying fuck about debt. I don't think they are capable of independent thought. They just parrot what they are told to parrot, and bleev what they are told to bleev.

They never cared about the debt. It was always debt peacocking with them. They think fretting about the debt makes them sound credible and thoughtful. It doesn't. Not when they don't really give a shit about it when they're in charge.

Your problem is that I'm not "one of them". I am outside the system because the system is rigged. YOU are mired in the two party paradigm. It isn't real.

Fuck you, liar. You are "one of them", as we can very simply look back at your posts on the USMB.

Seriously, you fool no one.

 

[g5000]

That's what a postcard tax return is.

The elimination of tax expenditures.

That is the ONLY way to achieve a postcard tax return.

This never occurs to the tards.

A politician waves a postcard in front of them, and they have NO CLUE of the implications of it.

 

[The Derp]

The debt has to do with spending. NOT Tax Cuts or

Medicare is what I do boy

So this is a really easy way to tell a troll. My reference to Medicare and Medicaid was purely along the lines of the cuts they will face beginning in January next year. So this troll here just interjects a non-sequitur, one he knows he cannot prove, as some sort of counter-argument to the fact that the tax plan he supports increases the deficit so much that automatic cuts to Medicare and Medicaid are triggered.

Rather than just not respond, his compulsion is to make everything about himself. We all see how poorly that works out for his argument.

So what does you "doing" Medicare have to do with the cuts to the program your dumb tax plan causes? Nothing. So why respond at all? Ego.

Eat some Tide Pods and go away.

When Doc says Medicare is what he does, he just means he bills the government. He doesn't know fuck-all about the government.

Sure thing "Tax Cuts" are "expenditures" boy.

Spending which raises tax rates. Yep. Spending which steals from every taxpayer to pay for it.

Econ 101, tard.

Tax Cuts =Spending, yes or no boy.

You cut revenue when you cut taxes.

That's called M-A-T-H

Your tax cuts don't pay for themselves. Never have, never will.

 

[Doc1]

Son Medicare is the 3rd rail of politics. There will be no cuts, none

You're a fucking idiot and here's why; the cuts to Medicare and Medicaid would have started this January, had Trump not waived the PayGo rule for them. But he can only do that once.

But what does that have to do with you "doing" Medicare? Nothing. You interjected that small fake personal detail for no other reason than to lend your argument fake credibility it doesn't have. And because you lied about that, it casts doubt on everything you say.

In fact, you're going to see that our entire system will become a Medicare type system. Now you go ahead and show me CNBC or MSNBC estimates, or FOX for that matter, I'll just laugh at you. The fact is you have NEVER been worried about any "deficits" Obama Boy. I can tell you where to research boy, do you want to know?

I think you feign outrage about the deficit because you can't repeal the programs you're ideologically opposed to via traditional legislation. So you peacock over the debt. Now you're strangely silent about the debt you screeched like a barnyard animal about during Obama's 8 years.

No one believes your shit anymore.

You're an idiot Derp, which is why your screen name is perfect. I get it, you don't want to know. I am not a Trump guy chump Why would I want to repeal Medicare? First thing I'd do is cut your Gov pension. Then I'd cut foreign aid. You're just another little man like g seeking relevance. You lose.

 

[The Derp]

Try to find any President other than Obama who had a deficit bigger than Trump's $666 billion.

Go ahead.


I'll wait here.

Well, you could argue that Bush's last deficit was the highest ever.

Good point.

The last time the GOP controlled both houses of Congress, they doubled our national debt.

I am convinced the pseudocons don't give a flying fuck about debt. I don't think they are capable of independent thought. They just parrot what they are told to parrot, and bleev what they are told to bleev.

They never cared about the debt. It was always debt peacocking with them. They think fretting about the debt makes them sound credible and thoughtful. It doesn't. Not when they don't really give a shit about it when they're in charge.

Your problem is that I'm not "one of them". I am outside the system because the system is rigged. YOU are mired in the two party paradigm. It isn't real.

No...you don't get to run away from the Conservatism that has attached itself like a leech to the worst POTUSes of modern times in order to advance a shared agenda.

We remember who you people are.

 

[g5000]

Of course, the GOP never waved a postcard tax return in front of the corporations. Oh hell no. Some actual fiscal conservatives tried that and were nearly lynched.

So the GOP rolled and gave them their cake and let them eat it, too.

They kept all the government gifts in the tax code which caused the corporate tax rate to be so high to begin with, and then lowered the tax rate anyway!


And that is how we got to where Trump will have to borrow $1.5 trillion, kids.

 

[Doc1]

The debt has to do with spending. NOT Tax Cuts or

So this is a really easy way to tell a troll. My reference to Medicare and Medicaid was purely along the lines of the cuts they will face beginning in January next year. So this troll here just interjects a non-sequitur, one he knows he cannot prove, as some sort of counter-argument to the fact that the tax plan he supports increases the deficit so much that automatic cuts to Medicare and Medicaid are triggered.

Rather than just not respond, his compulsion is to make everything about himself. We all see how poorly that works out for his argument.

So what does you "doing" Medicare have to do with the cuts to the program your dumb tax plan causes? Nothing. So why respond at all? Ego.

Eat some Tide Pods and go away.

When Doc says Medicare is what he does, he just means he bills the government. He doesn't know fuck-all about the government.

Sure thing "Tax Cuts" are "expenditures" boy.

Spending which raises tax rates. Yep. Spending which steals from every taxpayer to pay for it.

Econ 101, tard.

Tax Cuts =Spending, yes or no boy.

If we eliminated tax expenditures, we could LOWER tax rates for EVERYONE.

Econ 101, kiddo.

Tax Cuts =Spending, yes or no boy.

 

[g5000]

1994 flashback for the uninformed: The great bond massacre (Fortune, 1994)

Toddsterpatriot

 

[The Derp]

I am not a Trump guy chump

Your post history seems to indicate otherwise. Do you not think we can search your posts?

 

[g5000]

The debt has to do with spending. NOT Tax Cuts or

When Doc says Medicare is what he does, he just means he bills the government. He doesn't know fuck-all about the government.

Sure thing "Tax Cuts" are "expenditures" boy.

Spending which raises tax rates. Yep. Spending which steals from every taxpayer to pay for it.

Econ 101, tard.

Tax Cuts =Spending, yes or no boy.

If we eliminated tax expenditures, we could LOWER tax rates for EVERYONE.

Econ 101, kiddo.

Tax Cuts =Spending, yes or no boy.

Tax rate cuts are not spending.

Tax deductions, credits, and exemptions are spending which have to be made up for by raising tax rates or borrowing, usually both.

Glad to help move along your education, son.

 

[Doc1]

Try to find any President other than Obama who had a deficit bigger than Trump's $666 billion.

Go ahead.


I'll wait here.

Well, you could argue that Bush's last deficit was the highest ever.

Good point.

The last time the GOP controlled both houses of Congress, they doubled our national debt.

I am convinced the pseudocons don't give a flying fuck about debt. I don't think they are capable of independent thought. They just parrot what they are told to parrot, and bleev what they are told to bleev.

They never cared about the debt. It was always debt peacocking with them. They think fretting about the debt makes them sound credible and thoughtful. It doesn't. Not when they don't really give a shit about it when they're in charge.

Your problem is that I'm not "one of them". I am outside the system because the system is rigged. YOU are mired in the two party paradigm. It isn't real.

No...you don't get to run away from the Conservatism that has attached itself like a leech to the worst POTUSes of modern times in order to advance a shared agenda.

We remember who you people are.

They all work for the same Bankers kid. I'm not running from anything, I'm telling you that the system is balls deep in your ass.

 

[Doc1]

I am not a Trump guy chump

Your post history seems to indicate otherwise. Do you not think we can search your posts?

Then you aren't paying attention. Not being a Trump guy does not equate with not laughing at and deriding Progressive Bullshit. You just aren't very good at this.

 

[Toddsterpatriot]

Put it this way. When interest rates go up, all those trillions and trillions of bonds issued the past few years will be underwater.

You know, like home mortgages in 2008.

And those losses are multiplied 10, 20, 30 times by overleveraged derivatives.

Put it this way. When interest rates go up, all those trillions and trillions of bonds issued the past few years will be underwater.

Yes, bond values fluctuate when interest rates change.
If you didn't already know that you probably shouldn't invest your own money.

And those losses are multiplied 10, 20, 30 times by overleveraged derivatives.

If you didn't know how bond prices fluctuate, you really shouldn't trade bond derivatives.

And yet Wall Street has been caught with their dicks in the wringer countless times.

Including the guys who manage your 401k.

It's true, some people are long bonds, some people are short.

That's not how derivatives work.

A credit default swap is not zero sum. For all intents and purposes, it is an insurance policy.

If a bond ends up underwater, the seller of the CDS takes a big loss. The CDS buyer breaks even. So there is a net loss of wealth.

A credit default swap is not zero sum.

If I bet $1,000,000 in bonds will default, how much do I get if I'm right?
If you sell me that CDS, how much do you owe me?

For all intents and purposes, it is an insurance policy.

If you sell me an insurance policy, how much do I collect, how much do you pay?

If a bond ends up underwater, the seller of the CDS takes a big loss.

Yup. If it defaults, not if it drops in price.

The CDS buyer breaks even.

LOL!

So there is a net loss of wealth.

Which has nothing to do with the derivative.

 

[Doc1]

The debt has to do with spending. NOT Tax Cuts or

Sure thing "Tax Cuts" are "expenditures" boy.

Spending which raises tax rates. Yep. Spending which steals from every taxpayer to pay for it.

Econ 101, tard.

Tax Cuts =Spending, yes or no boy.

If we eliminated tax expenditures, we could LOWER tax rates for EVERYONE.

Econ 101, kiddo.

Tax Cuts =Spending, yes or no boy.

Tax rate cuts are not spending.

Tax deductions, credits, and exemptions are spending which have to be made up for by raising tax rates or borrowing, usually both.

Glad to help move along your education, son.

You CANNOT make this shit up, you just let slip your hypocrisy kid Tell me how Tax Deductions are not the same as Tax Deductions when they BOTH let the Tax PAYER keep more of their money? Dumbass.

 

[Toddsterpatriot]

There are an astronomical number of financial derivatives which will implode if that happens.

What kind of derivative "implodes" when rates rise?

See post 3. Also, interest rate swaps. Credit default swaps.

And as I said above, any bond bought in the past few years will be underwater. Therefore, they take big losses, and any derivatives built on those bonds will implode.

Just like 2008.

What does that "implosion" look like?

It looks like 1994, only much worse.


ORANGE COUNTY'S BANKRUPTCY: THE OVERVIEW; Orange County Crisis Jolts Bond Market

Derivatives with face values approaching triple digit trillions.

Face value?

Yes. Face value.

Also, interest rate swaps. Credit default swaps.

Yes, some people will make money on those derivatives, some will lose.

It's not a zero sum game, retard. See: 2008.

List any derivative that isn't zero sum, idiot.

I just did, tard.

Yes, I saw your stupid, incorrect answer.

 

[Doc1]

Trump is NOT a Conservative. Trump is NOT a Republican. Trump is doing his job, he's taking us to War.

 

[Toddsterpatriot]

An inverse floater is a bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. When the interest rate goes up the coupon payment rate will go down because the interest rate is deducted from the coupon payment. A higher interest rate means more is deducted, thus less is paid to the holder.

Inverse Floater

Looks like these borrowers will have a lower interest expense if rates rise.
Sounds awful!

Wrong.

The buyers of the inverse floaters will take a huge loss. That's why it is called an INVERSE floater, tard.

Just like 1994.

Wrong.

The buyers of the inverse floaters will take a huge loss.

And the sellers will have a gain, moron.

See post 32, tard.

If I issue a bond that currently has a 5% coupon and the coupon goes down to 4%,
the buyer lost 1% a year, I saved 1% a year.

Could you know less about this stuff? It'd be difficult.

 

[Doc1]

g5000

Who issues these Bonds?

 

[g5000]

Oh, another thing about derivatives.

They are pretty much unregulated. They aren't traded on regulated exchanges so that if one party goes under due to suffering extreme losses , the other parties can still be compensated. This means there is tremendous counterparty risk. And during a crash, that causes seizures.

The derivatives chain is so complex, no one knows what other parties are fucked and which ones aren't. Trust collapses. Liquidity freezes up.

See: 2008.