Lots of pension funds have made derivative bets that the price of bonds will stay low, when they go the other way people need paying, but pensions need to then sell their bonds to pay for the price rise. Some pensions like the situation but some bet the other way on this little technicality basically. (and they got caught)
Thanks, but the terms derivative bets, bonds etc don't mean very much to me, not being a financial person.
I thought pension funds were supposed to be long term investment tools weathering ups and downs in markets, where short term adverse was made up in the longer term.
Is this bankers once again screwing the system - us - as they did in 2008?
When the leverage used to purchase investments falls below a certain value, this results in a margin call, which forces the invester to close the trade (usually at a huge loss).
So, since the bond market is no longer worth diddly shit, it's value is not enough to act as collateral for other investments, hence margin calls and impending bankruptcy. That's why the BoE propped up the bond market, to allow the pension funds to start getting rid of their liabilites before the entire arse falls out of the market.
I'm not either really, and yes it probably will be like 2008+++ at some point. Maybe this time the people at the top take a haircut.
The alternative is higher tax, less spending and probably war to try and dismember Russia so we can gorge on the corpse (and find ourselves in the same situation again later but with nothing to kill).
QE = money printer printing free money that the Cabal uses to fund their nefarious schemes, start wars, buy up all the assets, and keep people poor
Money printing is necessary at this point to keep the pyramid scheme that is the western financial system afloat.
Right now Fed is throwing Europe, UK, Japan, Australia etc to keep printing more money to prop up the US and other Western treasury bonds.
Treasury bonds represent the sovereign debt. If they are not propped up, they will collapse causing the rest of the market - stock markets included to collapse.
If BoE is saying they are ending QE, they can either be:
Meaning it as a threat to the other Cabal factions, that they are gonna drop the ball, unless ...
They have done their part for now, they let some other country (Australia?) juggle the balls for a bit ...
Signalling that the end is near ...
Just lying to the people who are suffering from inflation, while they find other means to continue doing what they are doing.
In short, this does not mean anything definite to us.
What does this even mean?
Lots of pension funds have made derivative bets that the price of bonds will stay low, when they go the other way people need paying, but pensions need to then sell their bonds to pay for the price rise. Some pensions like the situation but some bet the other way on this little technicality basically. (and they got caught)
Thanks, but the terms derivative bets, bonds etc don't mean very much to me, not being a financial person.
I thought pension funds were supposed to be long term investment tools weathering ups and downs in markets, where short term adverse was made up in the longer term.
Is this bankers once again screwing the system - us - as they did in 2008?
When the leverage used to purchase investments falls below a certain value, this results in a margin call, which forces the invester to close the trade (usually at a huge loss).
So, since the bond market is no longer worth diddly shit, it's value is not enough to act as collateral for other investments, hence margin calls and impending bankruptcy. That's why the BoE propped up the bond market, to allow the pension funds to start getting rid of their liabilites before the entire arse falls out of the market.
I think.
I'm not either really, and yes it probably will be like 2008+++ at some point. Maybe this time the people at the top take a haircut.
The alternative is higher tax, less spending and probably war to try and dismember Russia so we can gorge on the corpse (and find ourselves in the same situation again later but with nothing to kill).
Don't they prep China for later?
QE = money printer printing free money that the Cabal uses to fund their nefarious schemes, start wars, buy up all the assets, and keep people poor
Money printing is necessary at this point to keep the pyramid scheme that is the western financial system afloat.
Right now Fed is throwing Europe, UK, Japan, Australia etc to keep printing more money to prop up the US and other Western treasury bonds.
Treasury bonds represent the sovereign debt. If they are not propped up, they will collapse causing the rest of the market - stock markets included to collapse.
If BoE is saying they are ending QE, they can either be:
Meaning it as a threat to the other Cabal factions, that they are gonna drop the ball, unless ...
They have done their part for now, they let some other country (Australia?) juggle the balls for a bit ...
Signalling that the end is near ...
Just lying to the people who are suffering from inflation, while they find other means to continue doing what they are doing.
In short, this does not mean anything definite to us.
Thanks
It they lose value,they no longer have collateral for short positions.
So they have to buy them back,and to do that they have to sell everything that's not nailed down.