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

Jump to content

Toggle shoutbox NYJETSFAN BANTER

ROBJETS Icon : (28 August 2014 - 10:48 PM) 2nd and 3rd stringers making the team had something to prove and even our 2nd stringers got owned so yes Im very concerned. The first stringers need breaks and also if some of them get injured they need to step up. So no after this performance start to finish Im very concerned
HarlemHxC814 Icon : (29 August 2014 - 06:39 AM) Meh...you're reading too much into it
HarlemHxC814 Icon : (29 August 2014 - 06:40 AM) Even in seasons where the Jets blew, I haven't seen anyone refer to the preseason to complain. Ever.
Jetsfan115 Icon : (29 August 2014 - 09:15 AM) fire izdik http://theredzone.or...rs/Default.aspx
Jetsman05 Icon : (29 August 2014 - 11:17 AM) I picture Rob and 115 as real life friends
Jetsfan0099 Icon : (29 August 2014 - 04:01 PM) Holmes can still play, problem is that hes also a cancer. He wore out his welcome with the Jets
ganggreen2003 Icon : (29 August 2014 - 08:23 PM) did Hill get cut?
HarlemHxC814 Icon : (29 August 2014 - 09:00 PM) Haven't seen anything yet
MikeGangGree... Icon : (29 August 2014 - 09:06 PM) Whos ready for the season!!? WOOOOO
azjetfan Icon : (30 August 2014 - 11:54 AM) Hill has been cut
MikeGangGree... Icon : (30 August 2014 - 01:24 PM) Who wants to take bets he ends up in NE
ROBJETS Icon : (30 August 2014 - 02:18 PM) We'll I guess you guys are fools then in thinking im a fool for being concerned. Do any of you even know that in 2013 the Jets gave up the most passing yards in the franchise since 1986? And our secondary right now is worse than last year right now. To not be concerned is utterly foolish.
ROBJETS Icon : (30 August 2014 - 02:19 PM) Unless our d-line has a monstrous year odds are the team will be eaten up in the pass. Every team will game plan to exploit the pass this year.
ROBJETS Icon : (30 August 2014 - 02:56 PM) Patterson got cut
flood555 Icon : (30 August 2014 - 03:24 PM) Patterson must have been a huge cancer to get cut
flood555 Icon : (30 August 2014 - 03:26 PM) is there a midseason draft? we need a DB!
Jetsfan0099 Icon : (30 August 2014 - 03:58 PM) Our week 1 starting CBs will be Antonio Allen and Darrin Walls... wow
Jetsfan0099 Icon : (30 August 2014 - 03:58 PM) interesting that Simms and Boyd were released
Jetsfan0099 Icon : (30 August 2014 - 04:00 PM) No more McIntyre
ROBJETS Icon : (30 August 2014 - 05:20 PM) Pretty sure some of these cuts like Simms and McIntyre were made for removing some more cap space to try to find some decent corners and maybe another reliable wr. Possibly get some players cheap. I'd say the current 53 roster will change a good bit in the next week.
ROBJETS Icon : (30 August 2014 - 05:23 PM) I just hope Geno doesn't get hurt or we are horse f*cked. Vick sure as hell can't stay healthy for a full season. I guess the FO could also be think of picking up an old vet cut as 3rd qb. Simms is ok but I'd never trust him to win a regular season game if he was put in.
ROBJETS Icon : (30 August 2014 - 05:25 PM) Anyway it's going yo be an interesting week.
Jetsfan0099 Icon : (30 August 2014 - 10:18 PM) I doubt it was about freeing up money, considering we are way under. Like more than $20 mil, way more than enough to find some vet minimum CB
Jetsfan0099 Icon : (30 August 2014 - 10:19 PM) it's more about the roster numbers. McIntyre was replaced by rookies. IK showed flashes when he played
bleedsgreen Icon : (31 August 2014 - 08:34 AM) McIntyre is a shock to me he was a solid backup and made some big plays
ganggreen2003 Icon : (31 August 2014 - 04:44 PM) 1 week till we are 1-0
ganggreen2003 Icon : (31 August 2014 - 04:44 PM) we need to annihilate the GAYders
azjetfan Icon : (31 August 2014 - 05:28 PM) We claimed McFadden from the Browns. Knows the system should be able to contribute right away
azjetfan Icon : (31 August 2014 - 05:29 PM) Watching the Browns game now. Playing all three CB spots. Looks OK. A little grabby although he has not been called for it
azjetfan Icon : (31 August 2014 - 05:30 PM) Might be a little aggressive and get burnt over top
HarlemHxC814 Icon : (31 August 2014 - 10:26 PM) FIRE IDZIK
Jetsfan0099 Icon : (Yesterday, 06:58 AM) ^^^ agreed
ganggreen2003 Icon : (Yesterday, 12:25 PM) all the admins on this page should be fired
ganggreen2003 Icon : (Yesterday, 12:25 PM) for being assclowns
Jetsfan0099 Icon : (Yesterday, 04:17 PM) The Jets are fucked at CB, signing some bums now. We need Milliner to get healthy
MikeGangGree... Icon : (Yesterday, 04:20 PM) We have signed CB Phillip Adams
ganggreen2003 Icon : (Yesterday, 05:55 PM) The Gayders are playing Derek Carr against the JETS
ganggreen2003 Icon : (Yesterday, 05:55 PM) our D Line better put him in a WORLD OF PAIN
MikeGangGree... Icon : (Yesterday, 06:11 PM) Rookie QB in our house...Rex do your thing!!
Jetsfan0099 Icon : (Yesterday, 09:56 PM) with Antonio Allen and Darrin Walls as our starting CBs
Jetsfan0099 Icon : (Yesterday, 10:00 PM) our offense should be better than last year, Geno looks more comfortable
Jetsfan0099 Icon : (Yesterday, 10:03 PM) The Jets released Jeremiah George and Ellis Lankster, hopefully George finds his way to the PS. AJ Edds was re-signed
santana Icon : (Today, 11:08 AM) Fire the admins!
santana Icon : (Today, 11:08 AM) Over paid talents
Jetsfan115 Icon : (Today, 01:55 PM) i get paid too much yo
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: 2,895
  • 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