NYJetsFan.com Forums: Get Ready For A 'massive Interest Rate Shock' Soon - NYJetsFan.com Forums

Jump to content

Toggle shoutbox NYJETSFAN BANTER

Jets UNDEFEATED!!!
ganggreen2003 Icon : (Today, 06:41 PM) the NFL better issue an long ass apology to the JETS for f***ing us on that bogus TO call
Mr_Jet Icon : (Today, 06:42 PM) What good is an apology going to do?
Mr_Jet Icon : (Today, 06:43 PM) They can save their apology.
bleedsgreen Icon : (Today, 06:43 PM) I'm so f***ing mad this is the usual bullshit
canuckfan Icon : (Today, 06:43 PM) we should have been awarded the TD
ganggreen2003 Icon : (Today, 06:43 PM) for f***ing us in the ass without lube
FlyHiJets Icon : (Today, 06:44 PM) game over
bleedsgreen Icon : (Today, 06:44 PM) Unfucking believable
ganggreen2003 Icon : (Today, 06:45 PM) I can't wait to hear this post-game presser by Rex
ganggreen2003 Icon : (Today, 06:45 PM) I hope he rips Marty a new asshole
Jetsman05 Icon : (Today, 06:45 PM) yeah cause Rex has perfectly coached many a games
canuckfan Icon : (Today, 06:45 PM) morningwheeg what an idiot....hope re4x throws him under the bus during the presser
Jetsman05 Icon : (Today, 06:45 PM) you want the NFL to say sorry and you want Morningwig canned. You're a clown
bleedsgreen Icon : (Today, 06:45 PM) Gotta give credit to greenbay. That's a good football team
Mr_Jet Icon : (Today, 06:46 PM) f*** an apology. It's not going to change anything in the standings which is what matters at the end of the season.
FlyHiJets Icon : (Today, 06:46 PM) definitely reminds me of AFC Championship in Denver
canuckfan Icon : (Today, 06:46 PM) marty ranks up there with bittfumble
canuckfan Icon : (Today, 06:47 PM) buttfumble
Mr_Jet Icon : (Today, 06:47 PM) The should have made sure he knew who was calling the time out. Hell Rex was on his right and Marty was on his left.
mgjetman Icon : (Today, 06:47 PM) Getting lazy with a minute 50 on the clock before half was the nail in the coffin.
Mr_Jet Icon : (Today, 06:48 PM) The ref
Mr_Jet Icon : (Today, 06:49 PM) There is plenty of blame to spread around. No team should lose a 17 point lead anyway.
ganggreen2003 Icon : (Today, 06:50 PM) DUDS - Miliner and Marty
ganggreen2003 Icon : (Today, 06:50 PM) BRUTAL LOSS
Mr_Jet Icon : (Today, 06:52 PM) I really don't blame Marty because it's the refs job to make sure he sees who is calling the timeout. Plus the ball had already been snapped before he even noticed somebody was calling a TO.
mgjetman Icon : (Today, 06:53 PM) Just gave that game away. WTH!!!
Mr_Jet Icon : (Today, 06:54 PM) He didn't even blow the whistle until Geno already had dropped back to pass. The play was already well underway.
bleedsgreen Icon : (Today, 07:03 PM) I heard it when the ball was already in the air
ganggreen2003 Icon : (Today, 07:05 PM) but it shouldn't of come down to that TO blunder
ganggreen2003 Icon : (Today, 07:05 PM) we did give up a 18 point lead
ganggreen2003 Icon : (Today, 07:05 PM) so we fucked up and lost
bleedsgreen Icon : (Today, 07:05 PM) True
ganggreen2003 Icon : (Today, 07:05 PM) time to get ready for MNF
santana Icon : (Today, 07:09 PM) Well it sucks when you start to feel the jets are going to lose the game them selves
santana Icon : (Today, 07:09 PM) the Vick play worthless
santana Icon : (Today, 07:09 PM) that run on 3rd and 5 worthless
santana Icon : (Today, 07:09 PM) chris Johnson also I don't know what his numbers were but ivory seemed to be a better back
ganggreen2003 Icon : (Today, 07:13 PM) Marty just picks the worse time to call those wildcat plays
ganggreen2003 Icon : (Today, 07:13 PM) they are drive killers
ROBJETS Icon : (Today, 07:27 PM) Problem is the corners. We knew this before the start of the season. I was amazed at how well they did last week and the first half but eventually the weakness showed
ROBJETS Icon : (Today, 07:28 PM) The corner positions will be addressed next year. Technically we are still in a rebuilding phase.
ganggreen2003 Icon : (Today, 07:39 PM) we did go toe to toe against a SB contender and we really shouldn't be heartbroken but if you call yourself a JETS fan and aren't a little pissed over a W that we had in our control then you need to go and hand in your JETS gear ... I'm looking at you 115
ganggreen2003 Icon : (Today, 08:24 PM) 18 penalties in 2 games
ganggreen2003 Icon : (Today, 08:25 PM) unacceptable
ganggreen2003 Icon : (Today, 08:27 PM) Geno dropped from #1 to #28 in TOTAL QBR
Resize Shouts Area

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

Get Ready For A 'massive Interest Rate Shock' Soon Bad news for the future economy.

#1 User is offline   azjetfan Icon

  • D Coordinator
  • Icon
  • Group: Members
  • Posts: 2,904
  • Joined: 30-March 05
  • Gender:Male
  • Location:Cheese Land Baby
  • Interests:Football, golf, banking and home improvements

  • NFL Team:

Posted 27 August 2013 - 02:52 PM

http://www.cnbc.com/...0a%20%27massive

Long story short, get ready middle class and below. This one is going to hurt. Within a year or two middle class will not be able to afford to buy a house unless you already own one. Our debt is catching up with us.


Quote

Wall Street and Washington love to spread fables that facilitate feelings of bliss among the investing public.

For example, recall in 2005 when they inculcated to consumers the notion that home prices have never, and will never, fall on a national basis.

We all know how that story turned out.

Along with their belief that real estate prices couldn't fall, one of their favorite conciliatory mantras that still exists today. Namely, that foreign investors have no choice but to perpetually support the U.S. debt market at any price and at any yield.

But, unlike what their mantra claims, the latest data show weakening demand in overseas purchases of Treasurys.
Is the economy as good as you think?


According to the U.S. Treasury Department, there was a record $40.8 billion of net foreign selling of Treasurys in June. That was the fifth straight month of outflows in long-term U.S. securities. China and Japan accounted for $40 billion of those net Treasury sales.

Those two nations are important because China is our largest foreign creditor ($1.27 trillion), and Japan is close with $1.08 trillion in holdings.

This shouldn't be a surprise to those who are able to accurately assess the ramifications from the Federal Reserve removing its massive bid for U.S. debt.

In truth, yields currently do not at all reflect the credit, currency or inflation risks associated with owning Treasurys.

If the Fed were not buying $45 billion each month of our government bonds, investors both foreign and domestic would require a much higher rate of return. Investors have to be concerned about the record $17 trillion government debt (107 percent of gross domestic product), which is growing $750 billion this year alone.

In addition, holders of U.S. debt must discount the inflation potential associated with a record $3.6 trillion Fed balance sheet, which is still growing at $85 billion each month. Also, foreign investors have to factor into their calculation the potential wealth-destroying effects of owning debt backed by a weakening U.S. dollar.


Of course, some people may claim that Japan has more debt outstanding as a percentage of its GDP than we do and yet the nation's interest rates are much lower than ours...so what's the problem?

But, unlike the U.S., Japan has a long history of deflation and only 10 percent of its debt is in foreign hands. The U.S. has not enjoyed any such history of deflation and is also a country that has only 50 percent of its debt held domestically.

Therefore, there hasn't been any real concern about foreigners abandoning the Japanese bond market because of a fear that the Yen may collapse.

But the tremendous number of foreign U.S. creditors needs to be constantly vigilant of the dollar's value. However, due to its foolish embracement of Abenomics, Japan will also have to fear a collapse of its debt market from rising inflation in the near future, just as we do here.


If the free market were allowed to set interest rates and not held down by the promise of endless Fed manipulation, borrowing costs would be close to 7 percent on the 10-year note. Let's face it, the only reason why anyone would loan money to the U.S. government at these levels is because of a belief that our central bank would be there to consistently push prices up and yields down after their purchases were made.

Our central bank has now adopted an entirely new paradigm.

Fed intervention used to be about small changes in the overnight interbank lending rate, which has averaged well above 5 percent for decades. However, not only has the Fed funds rate been near zero percent for the last five years, but also long term rates have been pushed lower by four iterations of quantitative easing.

The latest version is record setting, open-ended and massive in nature.

Since QE is mostly about lowering long-term rates, it shouldn't be hard to understand that its tapering would send rates soaring on the long end.


When the Fed stops buying Treasurys, foreign and domestic investors will do so as well. This means for a period of time there won't be anyone left to buy Treasurys unless prices first plunge.

The effects of rising rates will be profound on currencies, equity prices, real estate values and economies across the globe.

It would be wise to prepare your portfolio for a massive interest rate shock in the near future.

—Michael Pento is an economist and president of Pento Portfolio Strategies.

Posted Image
0

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

1 User(s) are reading this topic
0 members, 1 guests, 0 anonymous users