The Scariest Chart For The Market

Interest-rates going up "for the right reason" is bullish, right?

Each time interest rates have surged up to their long-term trendline, a 'crisis' has occurred...

(Click on image to enlarge)

h/t @IncomeDisparity

But this time is different right? Because rates are "going up for the right reason."

Hhmm, the reaction in markets each time the yield on the 10-Year Treasury yield reaches its trendline is ominous...

(Click on image to enlarge)

So the question is - have interest rates 'ever' gone up for the right reason?

Or is this narrative just one more bullshit line from a desperate industry of asset-gatherers and commission-takers?

It does make one wonder what the relationship between US government 'interest costs' and global money flow really is. Does an engineered equity tumble spark safe-haven-buying and ease the pain as deficits and debt loads soar. It would certainly help as $300bn additional budget deals are passed, The Fed has left the game, and China is threatening to be a seller not a buyer...

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Gary Anderson 1 year ago Contributor's comment

Well, this is partly right. Interest rates, since bond hoarding in the late '80s became serous business, have hit the wall and a crisis happened, like clockwork. That could happen again. The new normal was Greenspan's idea. Bonds as gold. But there are people who are trying to break the new normal. They are trying really hard to do this.

Angry Old Lady 1 year ago Member's comment

Gail Tverberg has a good update to this article here: "Raising Interest Rates Is Like Starting A Fission Chain Reaction." It is an Editor's Choice too!

www.talkmarkets.com/.../raising-interest-rates-is-like-starting-a-fission-chain-reaction