On Nov 27, 2010, at 2:16 PM, michael perelman wrote:
> Jane D'Arista would add that to the extent that QE2 lowers interest
> rates on long-term bonds (one of the intended goals of the program –
> one which will probably not succeed), the program will only serve to
> make speculation more attractive.
How's that? Speculators generally borrow short-term. A leveraged position in long bonds would be profitable if that happens, but probably most of the movement in rates has happened already, if at all.
Doug