4 ms·

What? I said the initial price of the bond was roughly 750$ which represented a 6% yield. 900 comes from QE. If the fed wants a 10 year interest rate of 1%,

What? I said the initial price of the bond was roughly 750$ which represented a 6% yield. 900 comes from QE. If the fed wants a 10 year interest rate of 1%, they would buy bonds on the market until the price rose from 750$ to 900$. And that is exactly what they did with QE 1-3. No wonder they got away with it... no one here even understands how QE worked.

fwdpropaganda 9y ago
> no one here even understands how QE worked You clearly don't. If you buy a 10 year bond for $750 and wait for 1 month, now you have a 9year,11months bond, which will have a price slightly below $750, and that's what the fed will give you for it. YOU made up that they will pay $900, but they won't.
- freejulian 9y ago
  You’re assuming there’s a coupon. I explicitly said these were zero coupon. In this case the price at 9 year 11 month is higher than 750$, dumbass. The entire point of QE is to increase the bond price, thereby reducing the yield. You don’t have a clue.
  - fwdpropaganda 9y ago
    But.... you're the one who's complaining that you missed out of assets booming due to QE. So surely if anyone doesn't have a clue it's you, right? I did quite well over the past decade.
    - freejulian 9y ago
      Oh look, the guy who doesn’t understand how bonds work is still here! Let’s all listen to his uninformed opinion! I’ve been buying bitcoin since 2014 since I did understand what the fed was doing. I did pretty alright.
      - fwdpropaganda 9y ago
        Now: > (...) I did understand what the fed was doing. Earlier (https://news.ycombinator.com/item?id=16604736 https://news.ycombinator.com/item?id=16604736) > (...) had I realized what the fed was doing when QE was happening I would have definitely done that. You wanted to pretend you're a victim from the evil FED while at the same time pretending you're smart enough to understand what's going on. You're full of shit. Don't waste my time.

fwdpropaganda 9y ago

> no one here even understands how QE worked You clearly don't. If you buy a 10 year bond for $750 and wait for 1 month, now you have a 9year,11months bond, which will have a price slightly below $750, and that's what the fed will give you for it. YOU made up that they will pay $900, but they won't.

freejulian 9y ago
You’re assuming there’s a coupon. I explicitly said these were zero coupon. In this case the price at 9 year 11 month is higher than 750$, dumbass. The entire point of QE is to increase the bond price, thereby reducing the yield. You don’t have a clue.
- fwdpropaganda 9y ago
  But.... you're the one who's complaining that you missed out of assets booming due to QE. So surely if anyone doesn't have a clue it's you, right? I did quite well over the past decade.
  - freejulian 9y ago
    Oh look, the guy who doesn’t understand how bonds work is still here! Let’s all listen to his uninformed opinion! I’ve been buying bitcoin since 2014 since I did understand what the fed was doing. I did pretty alright.
    - fwdpropaganda 9y ago
      Now: > (...) I did understand what the fed was doing. Earlier (https://news.ycombinator.com/item?id=16604736 https://news.ycombinator.com/item?id=16604736) > (...) had I realized what the fed was doing when QE was happening I would have definitely done that. You wanted to pretend you're a victim from the evil FED while at the same time pretending you're smart enough to understand what's going on. You're full of shit. Don't waste my time.