Ping away! How to play a bond collapse? Did you ask?
The only ways I know of are:
RRPIX Rydex
RYJUX Rydex
DXKSX Direxion
The Rydex funds have decent yields circa 4% and I like their charts. The Direxion fund I consider a litle off-brand. Also has a much lower yield, circa 1.3%.
There are banks that are solvent and there are banks that are not. They all know who is who. The ones that are solvent are the ones to “restart” the credit engine. More precisely, there is already a credit market working just fine between banks that are solvent and trust each other. The problem is with bringing the lousy bastards back into the system which are the bigger banks.
In the fullness of time, the solvent banks will help the market get back to normal a lot faster and with less pain than government intervention, and it is entirely possible government intervention could ruin the good the solvent banks are doing. All the more reason for Paulson to stay home and eat his Peking Duck.
Yes. Thank you!