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Whoo, boy

Shyam Shah says:
September 16 2017 at 6:57 pm
Where do I agree with you?

I am saying that you CANNOT say that bonds are overvalued simply by comparing the market price of bonds to the nominal value of bonds, as you and Daniel Mugge have done. The market price of bonds is dependent on the coupon. Which you steadfastly ignore.

The market price of a bond tells us literally nothing about it’s true value, and therefore it is impossible to say if bonds are overvalued given the information you have provided. If you say another crash is coming, then bonds are more than likely undervalued. Both can’t be true. Your non-existent model, supposedly better than the ones the market use, is also unable to provide us what the price of bonds should be.

You post above and your repeated comments on the last blog, as well as your unwillingness (or plain inability) to answer my basic bond questions show that you have no knowledge of how the bond markets work, despite your claims that you know everything about them.

Reply
Richard Murphy says:
September 16 2017 at 7:04 pm
You agree:

1) The market price does not tell us value, as I said

2) My model is unable to tell us what price bonds should have – as I said

3) In your last comment you said the market model cannot predict price except at a moment and I said that too

Thanks for your agreement

And I never denied coupon exists: that’s just bizarre

What I (and I think Daniel) said is it is being misvalued

It plainly is

Now you’re off here for good

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Leslie Smith says:
September 16 2017 at 7:11 pm
Why are you banning some people who agree with you and not others?

Reply
Richard Murphy says:
September 16 2017 at 7:20 pm
I am banning neoliberal trolls in turn

You now

The reasons are plainly stated in the comments section

Reply

Just. Not. Getting. It.

14 thoughts on “Whoo, boy”

  1. Matthew Moore says:
    Your comment is awaiting moderation.
    September 16 2017 at 7:59 pm
    Hi Richard – what proportion of your personal wealth are you holding in a short position on the UK gilt market?

  2. back to his usual petulant self – waving the ban hammer around like a pound shop thor whilst insulting his readership. That’s the way to persuade people that you are to be taken seriously.

  3. Simon Cofant says:
    September 16 2017 at 7:32 pm
    Richard
    When these neoliberal trolls are trying to disrupt your truth, you know you are doing something right!
    Keep up the good work,
    Si
    Always thought the sycophants even more stupid than spud .

  4. or perhaps a subtle dig i missed on first sight Si cofant DUH. Proof reading spudotollahs rants destroys brain cells.

  5. the amazing thing is that according to this post
    “Richard Murphy says:
    July 19 2017 at 6:34 pm
    I am a chartered accountant

    I have no exposure to the stock exchange

    I do to gilts

    I have some cash

    But the stock market is overvalued and i’m nit going near it”

    he’s invested in gilts but doesn’t seem to understand them at all.

  6. @moqifen – we’ll just add gilts to the long list of things Murphy doesn’t understand.

    I’m assuming that he has a pension of some sort – presumably he has one of those magic ones with no stock market exposure.

  7. @moqifen

    Why does he hold gilts – doesn’t he think gilts are overpriced too, since they’re mysteriously above their true value of nominal??

    If we still had perpetual bonds I wonder what value he’d say they’re worth, since the face value is never paid.

  8. Isn’t the point of a model to produce an output even if it’s a range, so if his model doesn’t predict the price what is it a model of

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