econlog.econlib.org - 11/24/2008
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(November 24, 2008 08:54 AM, by Arnold Kling) There has been a lot of commentary concerning Treasury Inflation-Protected Securities. One alleged anomaly is that the 10-year bond that expires on January 15 is reported to have a double-digit yield. How can that happen? The overall return on a...
ritholtz.com - 11/25/2008
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ritholtz.com —
Whenever I discuss the current bailout situation, I
find people have a hard time comprehending the actual...
numbers involved. That was a problem for the book , and I needed a way to put this into proper historical perspective. If we add in the Citi ...
(more)
Big Bailouts, Bigger Bucks
knzn.blogspot.com - 11/24/2008
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knzn.blogspot.com —
Before the Treasury decided to start issuing TIPS,
I was a strong advocate for inflation-adjusted bonds. At...
the time, I felt that people were overly concerned with inflation. (That was the mid-90’s, and I think subsequent experience bore out that ...
(more)
Memo to Tim Geithner: Retire the TIPS
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Monday's Daily News
Club for Growth —
... Toomey, National Review
Geithner: Secretary of Bailouts - Wall Street Journal Editorial
Building a Better Bailout - Lawrence Lindsey, Weekly Standard
Bring Back the Dollar/Gold Link - Richard Duncan, FT.com
Obama Introduces Plan To Create 2.5 Million Jobs - M. Gilbert, NJ
Detroit's Brand Killer - Rich Karlgaard, Forbes.com
Obama Scores A's in Politics, Flunks Leader Test - K. Hassett, Bloomberg
My Understanding of TIPS - Arnold Kling, EconLog
"Socialism" is ...
More TIP Yields
CrossingWallStreet.com —
Arnold Kling comments on the high short-term TIP yields:
The overall return on a seasoned TIP consists of three things. First, there is the coupon on the security. Second, there is the appreciation or depreciation of price. Third, there is the change in the accrued inflation factor. The coupon on the 1/15/09 TIP is 3.875 percent, so interest accumulates at that annual rate between now and then. So you can expect about 0.5 percent in interest (taking the number of days between now and January 15th, dividing by 365, and multiplying by the coupon rate). ...
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