Search found 14 matches

by frank5
Sat Nov 02, 2019 2:17 pm
Forum: Investing - Theory, News & General
Topic: Spike in Repo Rates [Fed Overnight Repurchase agreement]
Replies: 179
Views: 18265

Re: Spike in Repo Rates [Fed Overnight Repurchase agreement]

A below market loan results in less income for the gov't and is a reallocation of resources from services to banks. A below market loan may also occur between people: https://www.marketwatch.com/story/the-tax-smart-way-to-loan-money-to-family-members-2019-05-20 "Regardless of the interest rate you i...
by frank5
Wed Sep 25, 2019 6:34 pm
Forum: Investing - Theory, News & General
Topic: Spike in Repo Rates [Fed Overnight Repurchase agreement]
Replies: 179
Views: 18265

Re: Spike in Repo Rates [Fed Overnight Repurchase agreement]

https://www.marketwatch.com/story/new-york-fed-term-repo-operation-twice-oversubscribed-2019-09-24 https://apps.newyorkfed.org/markets/autorates/temp The New York Fed offered $30 billion of 14-day repurchasing agreements to banks and investors on Tuesday, temporarily lending funds to those in need o...
by frank5
Wed Sep 25, 2019 3:06 am
Forum: Investing - Theory, News & General
Topic: Spike in Repo Rates [Fed Overnight Repurchase agreement]
Replies: 179
Views: 18265

Re: Spike in Repo Rates [Fed Overnight Repurchase agreement]

https://www.marketwatch.com/story/here-are-five-things-to-know-about-the-recent-repo-market-operations-2019-09-18 “The repo market is the market where people running leveraged positions borrow,” Stanley told MarketWatch in an interview. “Obviously, that doesn’t apply to 401(k) funds or mutual funds,...
by frank5
Fri Sep 20, 2019 7:00 pm
Forum: Investing - Theory, News & General
Topic: Spike in Repo Rates [Fed Overnight Repurchase agreement]
Replies: 179
Views: 18265

Re: Spike in Repo Rates [Fed Overnight Repurchase agreement]

https://www.investopedia.com/terms/r/repurchaseagreement.asp "A repurchase agreement (REPO) is a form of short-term borrowing for dealers in government securities." Federal Reserve injects money to money to support REPO Markets (https://finance.yahoo.com/news/fed-injects-cash-fourth-day-124014326.ht...
by frank5
Sat Sep 07, 2019 6:08 pm
Forum: Investing - Theory, News & General
Topic: Rethinking the role of bonds in AA
Replies: 28
Views: 4242

Re: Rethinking the role of bonds in AA

The government bond yield difference is expanding between China and the US. Below shows the yield of the 10 year Chinese government bond. There is a currency risk if the yuan decreases in value per US dollar, so the money in a Chinese government bond is reduced in US dollar value, and a link below i...
by frank5
Sat Aug 24, 2019 12:39 am
Forum: Investing - Theory, News & General
Topic: Negative Interest Rates in U.S.
Replies: 254
Views: 24726

Re: Negative Interest Rates in U.S.

Ideally, an asset price should be set by supply and demand. The money supply may serve as an intermediate cause of the supply of money to purchase an asset, but not the proximate cause which is the purchaser's ability to pay. Also, an ideal model would incorporate demand for an asset which is subjec...
by frank5
Sat Aug 24, 2019 12:04 am
Forum: Investing - Theory, News & General
Topic: Negative Interest Rates in U.S.
Replies: 254
Views: 24726

Re: Negative Interest Rates in U.S.

Consumer price inflation may be positive while asset prices are deflating. Large purchases of treasury notes at some nominal interest rate are not realistically converted to a real rate by adjustment against a market basket of consumer goods, like food and clothing. Perhaps an equal or better measur...
by frank5
Mon Aug 19, 2019 10:36 pm
Forum: Investing - Theory, News & General
Topic: Why Zero (or Negative) Interest Rates Could Someday Make Sense
Replies: 92
Views: 7345

Re: Why Zero (or Negative) Interest Rates Could Someday Make Sense

The former US treasury secretary is correct that a negative rate is just a number and has no special properties apart from that. What is important is the interest rate adjusted for inflation. If there was deflation of -1% per year, then a treasury interest rate of -0.5% is a positive return. There a...
by frank5
Sat Aug 17, 2019 6:09 pm
Forum: Investing - Theory, News & General
Topic: Why Zero (or Negative) Interest Rates Could Someday Make Sense
Replies: 92
Views: 7345

Re: Why Zero (or Negative) Interest Rates Could Someday Make Sense

Perhaps a valid comparison is the real 10 year treasury rate to the real GDP rate of growth. A high rate of real GDP growth creates an expectation of higher real returns on the stock market, both dividends and share prices, so the treasury rate competes with this alternative. Recently we have expect...
by frank5
Wed Jun 26, 2019 10:44 pm
Forum: Personal Investments
Topic: TIAA-CREF Lifetime Income & 72(t) SEPP
Replies: 5
Views: 1165

Re: TIAA-CREF Lifetime Income & 72(t) SEPP

I have several T-C lifetime annuities in the payout phase begun two years ago at age 63. I get monthly checks from all of them. Even if started at 53, you'll have no issues or penalties with the IRS. My Trad annuities are nominally constant but in reality have adjusted upward by 1% or 2% each of th...
by frank5
Wed Aug 26, 2015 4:03 am
Forum: Personal Investments
Topic: TIAA Traditional Fees
Replies: 39
Views: 8706

Re: TIAA Traditional Fees

Was the planner set up so that the person is 65? If not, then it will project future earnings and the 100k will be higher. For example, if the person is 55 and asks the planner about an account worth 100k, then it will project what the 100k is worth in the future, based upon a set of assumptions, an...
by frank5
Sun Oct 23, 2011 7:14 pm
Forum: Investing - Theory, News & General
Topic: Article from The NY Times Magazine (10/23/11)
Replies: 15
Views: 3455

Re: Article from The NY Times Magazine (10/23/11)

Are you saying people are sheep? :shock:
by frank5
Wed Jul 21, 2010 4:08 pm
Forum: Personal Investments
Topic: Retirees advise on Annuities as part of retirement portfolio
Replies: 81
Views: 12725

Re: Retirees advise on Annuities as part of retirement portf

The immediate annuity is a good financial vehicle to cover essential living expenses. I would consider this to be economic needs, not wants. The remainder of the nest egg would be for additional income over and above living expenses. Second, I would not use after-tax dollars to buy the annuity. Plea...
by frank5
Tue Jul 20, 2010 7:29 pm
Forum: Personal Investments
Topic: Retirees advise on Annuities as part of retirement portfolio
Replies: 81
Views: 12725

Re: Retirees advise on Annuities as part of retirement portf

Hi Fabain, When I read your post and the replies it caused me concern. First, the replies could have been clearer. Their major point was that an immediate annuity is generally recommended for covering living expenses. If $28,700 of S.S. is enough to cover living expenses, then the default advice is ...