[Errant]

If you buy $1,000,000 worth of 10 year T-Bonds when rates are 3.7% and rates jump to 5% in the next 6 months. Did you make or lose money on your investment?

Increased our holdings of course. (Ignoring inflation since we're using fenced funding)

Banks with TARP loans are paying a fairly high rate on that loan.

From everything I've read (see linked articles above), these banks are getting the discount rate of 0 to .5 %. I research some of the criteria and it plainly states they may borrow for purchases of US securities. Do you have information that disputes these articles?

[Toddsterpatriot]

If you buy $1,000,000 worth of 10 year T-Bonds when rates are 3.7% and rates jump to 5% in the next 6 months. Did you make or lose money on your investment?

Increased our holdings of course.

After you made or lost money on your original purchase?

From everything I've read (see linked articles above), these banks are getting the discount rate of 0 to .5 %.

You said taxpayer money. That's not the discount rate. You know the difference between the Fed and the Treasury, don't you?

I research some of the criteria and it plainly states they may borrow for purchases of US securities.

Goes back to the original question, do you believe a 10 Year Treasury Bond is a risk free investment?