Federal Reserve Selling Put Options On Treasury Bonds

Discussion of the Bond portion of the Permanent Portfolio

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lazyboy
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Federal Reserve Selling Put Options On Treasury Bonds

Post by lazyboy »

Here's something that might spell trouble ahead:
FRAUD: Federal Reserve Is Selling Put Options On Treasury Bonds To Drive Down Yields

http://www.youtube.com/watch?v=ZnZnkaq8 ... r_embedded#!

I'm wondering what the implications to this are for the the PP. :-\
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MediumTex
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Re: Federal Reserve Selling Put Options On Treasury Bonds

Post by MediumTex »

If the Fed is as successful with this as they have been with every other market intervention, I wouldn't worry about it.

We are in a structural deflationary trend.  Interest rates are doing exactly what one would expect.  No Fed meddling is needed.
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moda0306
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Re: Federal Reserve Selling Put Options On Treasury Bonds

Post by moda0306 »

Short of making rates negative there's nothing they can do with this pathetic dance they keep trying.
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Re: Federal Reserve Selling Put Options On Treasury Bonds

Post by melveyr »

The video's author is great with details, but sometimes I think he misses the big picture.

What is his objection? What is he so worried about?

The government always does things that we cannot do. That's what makes them the government. Also, the Fed's entire mandate is to manipulate markets. It's not like he's telling the world a big secret.
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