I don't like #ZIRP either, Moon, but rising rates will trigger massive margin calls in derivatives markets. That should pick up demand for more bonds. JMO.
Moves towards rate normalization began some months ago. The issue is questions regarding the Federal Reserve's backbone to do anything these days. After nearly a decade of sitting on near #zirp and talking constantly about getting off it without doing anything, unfortunately they are not taken as reliable, honest, or dependable.
#Hillary and #Trump proposed massive deficit spending. Thus I have no idea what people were hoping for betting on for lower and lower bond rates post election. I guess they were betting Republicans held the House and Senate still (which they did) or that the #Fed would announce the end of raising rates and the US or even go back to #zirp. One can't realistically blame Trump alone for any of this.
Well, the real economy could use a little helicopter money, precisely doled out in a short time period. Why #ZeroHedge would be against helping the real economy simply because it views DB as being disingenuous is hard to figure out. Real #HelicopterMoney is base money stimulus and goes directly to the people, without bond swapping or any fiscal drag on government. It would make a lot of sense, and it beats #NIRP and #ZIRP. If Zero Hedge has a better idea, let's hear it. One point, though, how much it pushes yields up could be hard to determine, since demand for bonds won't wain for collateral. Zero Hedge has written about this collateral issue, and it could present a problem as long bonds are the most highly rated collateral, more highly rated than #gold itself.
The author is right about #zirp shoving up asset prices. The issue is they already have been shoved up. If you look at Japan as an example, the rise in multiple from there for Japan was caused equally by the collapse of earnings and growth from their central banks monetary escapades. We are only now seeing the slow growth erode earnings for out companies.
I am hopeful good companies will avoid this rise in stock multiples and will inevitably rise in value instead although I know most companies will not avoid this fate.
Great, now the view the #Fed won't raise rates for a few more months is firmly in place. Now what? They put on the thought they may raise rates again so they can play the won't raise rates again card. I think I'm having getting off #zirp deja vu all over again?
#AIG tanked a year before Bear! AIG was the monoline insurance company backing all the crap.
Then the banks eliminated Bear and Paulson destroyed Lehman and everything got all impaired and Bush went begging around the White House and adjacent grounds until congress handed Paulson his blank check and happy Gilmore hands it to the Fed. (Update: Paulson. Was DJ for Chinese premier visit to america)
The fed has resources! You should focus On the LTCM bailout. You chaps are out to sea.
Just cause you coined #ZIRP doesnt mean you get it!
Don’t Count on the Great Rotation
I don't like #ZIRP either, Moon, but rising rates will trigger massive margin calls in derivatives markets. That should pick up demand for more bonds. JMO.
Don’t Count on the Great Rotation
Moves towards rate normalization began some months ago. The issue is questions regarding the Federal Reserve's backbone to do anything these days. After nearly a decade of sitting on near #zirp and talking constantly about getting off it without doing anything, unfortunately they are not taken as reliable, honest, or dependable.
Over $1 Trillion In Bond Losses In Days: Second Worst Week Ever
#Hillary and #Trump proposed massive deficit spending. Thus I have no idea what people were hoping for betting on for lower and lower bond rates post election. I guess they were betting Republicans held the House and Senate still (which they did) or that the #Fed would announce the end of raising rates and the US or even go back to #zirp. One can't realistically blame Trump alone for any of this.
Deutsche Bank Loves Helicopter Money: Why "Big Inflation Is Coming... But Will First Require A Crisis"
Well, the real economy could use a little helicopter money, precisely doled out in a short time period. Why #ZeroHedge would be against helping the real economy simply because it views DB as being disingenuous is hard to figure out. Real #HelicopterMoney is base money stimulus and goes directly to the people, without bond swapping or any fiscal drag on government. It would make a lot of sense, and it beats #NIRP and #ZIRP. If Zero Hedge has a better idea, let's hear it. One point, though, how much it pushes yields up could be hard to determine, since demand for bonds won't wain for collateral. Zero Hedge has written about this collateral issue, and it could present a problem as long bonds are the most highly rated collateral, more highly rated than #gold itself.
Why U.S. Stocks Could Rise 50% Higher
The author is right about #zirp shoving up asset prices. The issue is they already have been shoved up. If you look at Japan as an example, the rise in multiple from there for Japan was caused equally by the collapse of earnings and growth from their central banks monetary escapades. We are only now seeing the slow growth erode earnings for out companies.
I am hopeful good companies will avoid this rise in stock multiples and will inevitably rise in value instead although I know most companies will not avoid this fate.
S&P 500 Snapshot: Another Day, A Fractional Loss After Four Record Highs
Great, now the view the #Fed won't raise rates for a few more months is firmly in place. Now what? They put on the thought they may raise rates again so they can play the won't raise rates again card. I think I'm having getting off #zirp deja vu all over again?
Germany Is About To Sell Zero-Coupon 10 Year Bonds For The First Time Ever
#AIG tanked a year before Bear! AIG was the monoline insurance company backing all the crap.
Then the banks eliminated Bear and Paulson destroyed Lehman and everything got all impaired and Bush went begging around the White House and adjacent grounds until congress handed Paulson his blank check and happy Gilmore hands it to the Fed. (Update: Paulson. Was DJ for Chinese premier visit to america)
The fed has resources! You should focus On the LTCM bailout. You chaps are out to sea.
Just cause you coined #ZIRP doesnt mean you get it!
N