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by Arnt 148 days ago
The normal trading volume isn't really the key. Rather, it's how elastic the price is.

Suppose these guys sell 10% of the daily trading volume. How do the traders in the market react? One possibility: Buy at current prices. Another: Speculate that there'll be more sales and the price will drop by a couple of per cent in the coming days/weeks, and delay their buying in order to buy the dip.

I'm sure the Americans have laid plans for how to avoid a major Oops.

1 comments

> How do the traders in the market react?

Buy. Because the Fed is about to monetize the debt.

Maybe I misunderstand, but that sounds as if you're saying that Treasuries have low risk and middling yield. Is that what you mean? (Half the G20 countries currently have <4% yield on ten-year bonds, the other half more.)