Jim Willie Discusses The Bond Bubble, Part II
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This podcast picks up right where Part One left off, as Jim is about to discuss "the bond carry trade".
The Bond Carry Trade is the process by which, since 2009, the TBTF banks have been able to "pretty up" their balance sheets by showing massive profits on their bond portfolios. The banks borrow from The Fed at near-zero interest rates and they re-invest that same money into 2-3% yielding treasuries, keeping the spread and booking it as quarterly profit. This allows CNBS and other media to tout their equities as "cheap" and "undervalued" when, in fact, they are insolvent zombies.
As you might imagine, The Bond Carry Trade is only one of the topics Jim covers here so sit back, relax and enjoy yourself some Jackass. TF
Jim Willie
Jim Willie is an original. If you want to be official about it, you can call Jim a "statistical analyst" as Jim has a PhD in statistics from Carnegie Mellon. Since 2004, however, he's simply been known as "The Golden Jackass".
Through his website http://www.goldenjackass.com/ Jim has developed a subscription-based newsletter service which is second-to-none in its quality and its "outside-the-box" thinking. Jim's very affordable service,The Hat Trick Letter, can be found here:http://www.goldenjackass.com/subscribe.html
p.s. As you can tell by his bio picture, he has an extraordinarily large brain, which he uses to all of our benefit.
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