Why a 50 year note?

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DmaxSilver's picture
DmaxSilver
Status: Member (Offline)
Joined: Apr 20 2009
Posts: 24
Why a 50 year note?

I don't get it . .  I mean whats the benefit? Unless it's the FED buying these and will be used for QE2???

Thoughts?

 

http://www.zerohedge.com/article/goldman-50-year-note-test-succeeds-bond-upsized-250-million-13-billion

 

 

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Why a 50 year note?

My take is that it is all about keeping this concept of debt/credit rolling. Get people involved in a 50 year note then change the rules as you go along. Basically keep baiting them into the debt game.

compinthegroove's picture
compinthegroove
Status: Silver Member (Offline)
Joined: Nov 8 2009
Posts: 113
Re: Why a 50 year note?

This is simple.  Treasuries are yielding basically nothing, so the prospect of earning something above nothing entices investors who foolishly think that we'll have deflation.  This is money chasing yield.  The 50 year maturity means its dumb money chasing yield.

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