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Originally posted by Dance4Life
Originally posted by HunkaHunka
Originally posted by Dance4Life
This is such a non event, but a great example of how the media loves to mess with the uninformed.
There are 1 MILLION PLUS contracts being traded a day with 30 yr and 10 yr.
They are basically lying to you in so many words.
This is a literal drop in the bucket as far as liquidity goes in the most liquid market in the world.
This guy(s) traded a total of 5000 contracts.
This is so laughable. 5000/1000000 daily = .005% OF AVERAGE TOTAL DAILY VOLUMEedit on 26-7-2011 by Dance4Life because: (no reason given)
I don't think anyone is concerned about the number of trades being made... it's the cost of 1 billion USD bet against the US that is interesting....
No, you and others dont quite understand. But I can see this because you don't know any better plus the article is lying to you.
First of all it is not a 1 Billion dollar bet. Not even close. It is 25,000,000 for the initial margin requirement. Which, take my word, is not a lot of money in this industry. Much more than I will personally ever accumulate, but not a lot when we look at this market.
Next, the 5000 contracts being laid are so not newsworthy it is ridiculous. Like I said .005% of total daily volume.
Btw, how do you know this trade isn't hedged in another market? Such as going long dollar? Or what about synthetic options such as selling puts and buying futures?
See, the thing is that this trade is so dumb and out of context it is hard to even comment on it. It really is no big deal at all. The market isn't ran by small timers like me, it is ran by the millions of people that have this kind of cash to throw around.
Must have been a slow news day or something - because they REALLY went out of their way to sensationalize this.
Originally posted by theyrout2getus
reply to post by jimrat201
Here's an idea... Why doesn't the government/ treasury make the same investment on a really large scale. Then our government could default and make enough to repay the debt plus!!! Then they would have to make our credit rating AAAAA+ roflmfao!
Originally posted by ElectricWizard
News flash, if you use common sense and think about how many billionaires there are.. it is really not that much money.
Ask yourself. "How many billionaires are there?" then ask yourself "How many billionaires are making trades like these?"
Common sense is wonderful if used.
Originally posted by ctdannyd
I find it interesting that we have a couple of lurkers that suddenly came out of the woodwork and are preaching the "...don't worry be happy..." mantra.
These guys might be real. If so, welcome! Or, they can be yet another couple of personalities created by someone with an agenda tainted towards the it's ok to default scenario.
Personally, my opinion is that if an American, or, and American Corp. bets "against" the US of A, it should be tantamount to treason. But, that's just my opinion. Whether it makes sense in the financial world or not, especially at this venture, not something that any American should have to witness.
Originally posted by jimrat201
so basically, aug 2nd, we either lose the AAA credit or we keep it. if we lose it
Originally posted by Bob Sholtz
so this is preliminary evidence of insider trading. someone with knowledge of how the game will end bet 1 billion that we will either lose our AAA credit rating, default, or both.
i wouldn't be surprised if it turned out to be linked with someone in congress, since they are immune to insider trading laws.