So,
yesterday, (Thursday) ..
The stock market go a good DROP.
Why? INTEREST RATES ARE GOING
UP...............................
I CALLED IT......................... in my post of May
30:
May 30
Post: (I LOVE BEING RIGHT!!
LOL)
Since then, interest rates on 10 yr Treasuries has gone
from 2.146% to.....now.... 2.4% !!!
That's a BIG move in just 3 weeks!! That's
a 12% rise.
Since just May 2 this year, that rate has gone
from 1.63% to 2.4% !!
That's an even BIGGER move in just 7
weeks. That's a rise of 47%
That's a FORTY-SEVEN PERCENT
INCREASE !!!
So.....rates are going up IN SPITE OF Bernanke's intent
to keep them low...AH, the FREE MARKET.
THE FREE MARKET does NOT care WHAT Bernanke's plans are.
the supposition is this: IF the Fed
stops buying up $85 BILLION of US Debt each month, then....
INTEREST RATES WILL HAVE TO GO UP........TO ENTICE ENOUGH
BUYERS TO THE TABLE TO REPLACE THE FED !!!
Thus.......INTEREST RATES ARE, FINALLY, STARTING
UP.....after so many years of going down. (some 30 years
altogether!!
TICK TOCK.....................
YFIC,
Randy
PS.......................
1) that does NOT mean rates are going to hit 3% by the
end of the year (and certainly NOT 4%!?) It just means
that going DOWN is OVER.
and
2) It could take A
LOOOOOOOOOOOOOONNNNNNNNNNGGGGGGGGGGGGGGG Time for rates to
really get back to anything interesting, like 4,5,6 percent.
and
3) As rates go UP...................what will that
do to the ability to balance the US annual budget
deficit?
IT WILL MAKE IT EVEN
WORSE!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ugh!!
not good.......NOT GOOD!
