The Twist As you see “The Twist” will be the topic we are going to discuss with Larry Levin today. Since we not only need trading techniques , some good information will help your trading. Just a short talk, check to learn to trade !
<ul><li>The Fed’s “Operation Twist” of 1961 is back in style and every banker that’s cool is doing the dance. The “Twist” is the Fed’s way of further manipulating the interest market by selling short term Treasuries and using those funds to purchase longer dated maturities like the 30-YR Bond. </li></ul>
<ul><li>The idea is to force longer term interest rates down about 30-basis points…for just $400 billion. Although the Fed says there really is no risk to this and it is not printing money because it is selling short term Treasuries to fund the purchases; won’t the EXIT of the long term positions be – well – risky? </li></ul>
<ul><li>A good synopsis of the idea is in this video. </li></ul><ul><li>http://finance.yahoo.com/blogs/daily-ticker/very-unusual-fed-action-fails-boost-animal-spirits-201210173.html;_ylt=At_OWe6lHKbGyzKPxE0Fx9i7YWsA;_ylu=X3oDMTFjajNocWx2BHBvcwMzBHNlYwNGUERhaWx5VGlja2VyQmxvZwRzbGsDd </li></ul>
<ul><li>In “other news” the US Gov. is about to shut down again: the House failed to pass a Continuing Resolution Bill this evening, which should make for a lot of fun very soon. </li></ul>
<ul><li>Trade well and follow the trend, not the so-called “experts.” </li></ul><ul><li>Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters. </li></ul>