Rates already up a half of a point in last two months.
So the Simpson show was correct. It predicted Trumps win and subsequent crash in the economy.
Now if you doubt this you must think the buyers of our bonds are pretty stupid and they won’t wait for a float up in yields and a drop in price. Maybe these wonderful 1 percenters will step up and help their buddy.
And no, Democrats wouldn’t have helped either. 4.3 trillion on the feds balance sheet is 4.3 trillion of massive debt that has to be sold. Or maybe the Pope will rescue him.
I live in Las Vegas. I bought an acre with equity funny money in 2007 in Pahrump NV. The place that made Odem famous for his brothel activities. Lol. But anyway I had to file BK in 2009. The trustee couldn’t sell the land for a decent amount and never took ownership. I just sold it for 18,000. I bought for 60,000 In 2009. But it is going crazy here again. Due to hedge funds buying everything up I ended up getting a property by the North Las Vegas airport. I shit you not. Airplane houses are selling for 150$ a sq foot.
That’s what I call them. Lol the good neighborhoods are selling at multiple offers at $200 a sq. Foot. It’s looking like a major top out. Like the stock market.
A fire sale by the Treasury could send shock waves through the bond market, strategist warns
This area of the bond market is concerning Wells Fargo the most from CNBC.
Wells Fargo’s head of interest rate strategy is detecting a major trouble spot in the bond market.
Michael Schumacher’s chief concern right now: Who’s going to buy all those extra Treasury notes?
“They [people] are worried about Treasury issuance going up, up, up. You could see an increase in 2018 of 50 percent — maybe more versus last year. That’s got a lot of people very concerned, myself included,” he said recently on CNBC’s “Futures Now.”He anticipates the Treasury Department will likely announce within days a “pretty significant change” in the way it issues bonds. It comes just as the Fed is shrinking its balance sheet. With less demand coming from the Fed, a fire sale of sorts would increase supply and emerge as the major catalyst causing yields to jump.
“You could see a pretty significant sell-off not just in the 10-year, which people focus on quite a bit, but also on 30-year bonds. We’re very concerned about that,” Schumacher said. “Being the bond nerd that I am, I’d say the market wants to climb a wall of worry like it does in stocks.”
Personal Saving Rate is bad and trending worse
fred.stlouisfed.org/series/PSAVERT#0
from ZH:
Amid soaring credit card use, the tumble in Americans’ savings rate continued in December with a modestly better than expected 0.4% MoM rise in incomes and as expected 0.4% rise in spending (but upward revisions in spending).
Income is growing at 4.1% YoY – the most since Nov 2015 – but spending is still outpacing that growth…
Student loan debt has more than doubled since 2009 to $1.3 trillion today
Even by government standards, it is a colossally dumb idea: revoking someone’s license to work as a way to get them to pay off their student loans. Yet many states do just that.
Student loan debt has more than doubled since 2009 to $1.3 trillion today. The average borrower in the class of 2016 left campus more than $30,000 in debt — triple the level from 1990, while earnings for newly minted grads have remained flat. Many are struggling to keep up with payments. Of the 22 million Americans with student loan debt, 30 percent are in default (at least a year behind on a payment) or delinquent (at least a month behind). The tax bill passed by the House, which would eliminate deductions for interest on student loans, may worsen this situation.
UK insolvencies at highest level since financial crisis
FT: China faces refinancing crunch with $2.7tn of bonds bearing down
AC