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[FONT=Tahoma","sans-serif]The markets tanked on word from the Fed as it launched "Operation Twist," the exchange of $400 billion short term Treasuries for long term Treasuries of the same amount. Can you imagine the Treasury came up with this title? The SEC must be having a field day. Sounds like the Fed just recovered Chubby Checkers 60s classic, “Let’s Twist Again.” [/FONT]
[FONT=Tahoma","sans-serif]“We’ll be twisting the night away,” as the song goes. But it will be more like writhing in the wind. The American flag not fluttering in majesty,but snapping on the pole of a hurricane howl. We’re looking like Japan in the 90s. Oh for the days of the gold standard. Ok enough reminiscing. Ready, set, go! [/FONT]
[FONT=Tahoma","sans-serif]Let the fixed annuity fire sales begin! Start compiling a list ofyour CD and cash equivalent clients. Those fixed rate savers are going to want to lock down ten year positions like there's no tomorrow. And while they're locking down today's rates, they might as well as refinance their mortgages while they're at it. Think about it: Inflation could out pace ten year Treasuries. Now I’m sweating! When and where will the rates bottom out? Long term permanent life insurance never looked so good. Oh, sorry this is an annuity blog. [/FONT]
[FONT=Tahoma","sans-serif]The fire sale for fixed annuities is going to burn red hot and then flame out. Talk about annuity carrier disintermediation. No one sold short to cover this. It’s going to be indexed annuities or nothing. If you thought indexed annuities were hot, they’re going combustible! Trade in your CD/annuity comparison software for one that features the S&P 500 versus Tax Deferred Indexed Annuity. (Yet to be invented!) [/FONT]
[FONT=Tahoma","sans-serif]“We’ll be twisting the night away,” as the song goes. But it will be more like writhing in the wind. The American flag not fluttering in majesty,but snapping on the pole of a hurricane howl. We’re looking like Japan in the 90s. Oh for the days of the gold standard. Ok enough reminiscing. Ready, set, go! [/FONT]
[FONT=Tahoma","sans-serif]Let the fixed annuity fire sales begin! Start compiling a list ofyour CD and cash equivalent clients. Those fixed rate savers are going to want to lock down ten year positions like there's no tomorrow. And while they're locking down today's rates, they might as well as refinance their mortgages while they're at it. Think about it: Inflation could out pace ten year Treasuries. Now I’m sweating! When and where will the rates bottom out? Long term permanent life insurance never looked so good. Oh, sorry this is an annuity blog. [/FONT]
[FONT=Tahoma","sans-serif]The fire sale for fixed annuities is going to burn red hot and then flame out. Talk about annuity carrier disintermediation. No one sold short to cover this. It’s going to be indexed annuities or nothing. If you thought indexed annuities were hot, they’re going combustible! Trade in your CD/annuity comparison software for one that features the S&P 500 versus Tax Deferred Indexed Annuity. (Yet to be invented!) [/FONT]
