On Sun, Nov 28, 2010 at 2:44 PM, Doug Henwood <dhenwood at panix.com> wrote:
>
> On Nov 28, 2010, at 5:37 PM, michael perelman wrote:
>
>> But bondholders are likely to try to get out of the bonds ASAP to lock
>> in those capital gains. The proceeds can be used for speculation.
>
> Who do you think dominates day-to-day bond moves? Short-term traders.
>
> If they all move to liquidate their holdings to realize their capital gains, prices will fall, and gains will disappear.
>
> You make it sound like it's easy to trade bonds.
>
> Doug
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-- Michael Perelman Economics Department California State University Chico, CA 95929
530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com