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Would you tie up some cash for 7 years at 6%?
Old 01-02-2006, 10:16 AM   #1
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Would you tie up some cash for 7 years at 6%?

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Term Rate APY
1-Year 4.21% 4.30 %
2-Year 4.64% 4.75 %
3-Year 5.36% 5.50 %
4-Year 5.36% 5.50 %
5-Year 5.59% 5.75 %
7-Year 5.83% 6.00 %

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Re: Would you tie up some cash for 7 years at 6%?
Old 01-02-2006, 10:18 AM   #2
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Re: Would you tie up some cash for 7 years at 6%?

Nope, but I would do the 5 year deal. You can get out with a 6 month interest penalty on the 5 year CD, but have to give up a full year of interest for the 7 year deal. Not worth the extra 25BP.
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Re: Would you tie up some cash for 7 years at 6%?
Old 01-02-2006, 10:35 AM   #3
 
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Re: Would you tie up some cash for 7 years at 6%?

Absolutly Not, the current state of the US Economy clearly indicates double digit interest rates as the Federal Government attempts to slow down on Foreigners cashing out of Greenbacks.

The Real Estate bubble will collapse, every one will blame Bush and Greenspan, but they will both have left office.

the sharp increase in gold, the flight to commodities, the increasing strength of the Canadian and Australian $'s, both commodity based(or perceived to be) economies clearly indicate inflation on the Horizon and lack of confidance in the $US.

China will soon not need the US market, it has over a billion potential customers domestically and another billion next door in India, gas and Oil and timber can be brought by train from Siberia.

I would stay short Corporate Bonds, and if I had a mortgage, I would go out as long as I could.
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Re: Would you tie up some cash for 7 years at 6%?
Old 01-02-2006, 12:13 PM   #4
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Re: Would you tie up some cash for 7 years at 6%?

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I would stay short Corporate Bonds, and if I had a mortgage, I would go out as long as I could.
If this is the case, we should sell bonds and take out a second mortgage or loan and use the proceeds to invest in commodity and gold funds.
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Re: Would you tie up some cash for 7 years at 6%?
Old 01-02-2006, 01:16 PM   #5
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Re: Would you tie up some cash for 7 years at 6%?

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Originally Posted by Howard
China will soon not need the US market, it has over a billion potential customers domestically and another billion next door in India,
Howard,

Those billion domestic customers will only have the $'s to buy Chinese products if they receive income from selling goods to the US. I think China's economy is a LONG way from self-sustaining.

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Re: Would you tie up some cash for 7 years at 6%?
Old 01-02-2006, 01:29 PM   #6
 
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Re: Would you tie up some cash for 7 years at 6%?

grumpy, never underestimate the ability of the Chinese to do things quickly, they have been told to slow down as they are almost ready for the Olympics.

Their Trading Partners will be Asia, what do they need from the States that they cannot source elsewhere??

America needs a wake up call, they are not adressing the real issues, in Canada we are concerned our $ will become worth more than the US which will hurt our Exports and stimulate Imports, not good for an economy.

CNBC is becoming less watched, less relevant, when Jim Cramer is a draw, you know that serious trouble lies ahead.

The US catches a cold, Canada gets Pneumonia.
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Re: Would you tie up some cash for 7 years at 6%?
Old 01-02-2006, 02:55 PM   #7
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Re: Would you tie up some cash for 7 years at 6%?

I don't think I'd go for the 7-yr or even the 5.* But that's just me.

Don't mean to hijack the thread, but [hijacking the thread] I've been wondering about the Forums' collective opinion on Corporate Notes... I guess that's the proper term?

I've kept most of my spare cash at GE for the past ten years.* But now I'm seeing that Ford seems to have significantly better rates.* Both give you the ability to access your money any time with check-writing, electronic deposit, etc.

Other than not being FDIC insured, or Ford going bankrupt, what are the risks?*

P.S. this post was an experiment in cool Nords-like embedded links, so please forgive me if they don't work.* *

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Re: Would you tie up some cash for 7 years at 6%?
Old 01-02-2006, 03:52 PM   #8
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Re: Would you tie up some cash for 7 years at 6%?

Quote:
Originally Posted by Sheryl
I don't think I'd go for the 7-yr or even the 5.* But that's just me.

Don't mean to hijack the thread, but [hijacking the thread] I've been wondering about the Forums' collective opinion on Corporate Notes... I guess that's the proper term?

I've kept most of my spare cash at GE for the past ten years.* But now I'm seeing that Ford seems to have significantly better rates.* Both give you the ability to access your money any time with check-writing, electronic deposit, etc.

Other than not being FDIC insured, or Ford going bankrupt, what are the risks?*

P.S. this post was an experiment in cool Nords-like embedded links, so please forgive me if they don't work.* *

If you are investing in these places, you should treat what you buy just like corporate debt and do your DD and credit analysis accordingly. In the case of Ford, you have unsecured exposure to a junk-rated issuer. Is that really where you want to keep your ready cash? Not me. Now if this is money that you are happy investing in a junk bond, with the risk tolerance that implies, then so be it, but don't treat it like a savings account at an insured institution.
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