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MikeGangGree... Icon : (17 February 2015 - 11:27 PM) SUCK FOR THE DUCK
santana Icon : (18 February 2015 - 12:32 PM) THE BEETS
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MikeGangGree... Icon : (18 February 2015 - 02:46 PM) TEH MOTHER f***ing BEETS
Jetsfan0099 Icon : (18 February 2015 - 03:32 PM) Jets met with Josh McCown
HarlemHxC814 Icon : (18 February 2015 - 06:25 PM) Please no
Jetsfan0099 Icon : (19 February 2015 - 12:28 PM) Reports say Jets to go hard after CJ Spiller. Bring him aboard, he'll be a good signing. Was a stud in Chan's offense and RBs don't cost much
Jetsfan0099 Icon : (20 February 2015 - 12:09 PM) Saw that the Bills are meeting with Spiller and may sign him before FA.
Jetsfan0099 Icon : (20 February 2015 - 12:10 PM) if that happens, I think the Jets should go after Shane Vereen. Nice pass catching option out of the backfield, only 25.
Smedsthejet Icon : (20 February 2015 - 04:06 PM) Think Vereen would be a great option...I thought he was one of their best and most valuable performers during the playoffs and we need a back who can contribute in the passing game as well. Jets have been missing that piece since LT retired
Jetsfan0099 Icon : (21 February 2015 - 01:41 PM) Mariota ran a 4.52
Jetsfan0099 Icon : (21 February 2015 - 01:41 PM) Fastest for a QB since RG3
MikeGangGree... Icon : (21 February 2015 - 03:52 PM) SUCK FOR THE DUCK
ganggreen2003 Icon : (22 February 2015 - 04:46 PM) BREAKING NEWS: The New York JETS will be trading their #6 pick to Tampa Bay's #1 pick for a BAG of Shit and Darrelle Revis after he is signed in FA and sent back to Tampa Bay. - Source is Tom LaCanfora Glazer de la Menefee
santana Icon : (24 February 2015 - 03:18 PM) UEFA TIME
Chaos Icon : (25 February 2015 - 09:46 AM) http://seattle.sunti...-video-released
2JBallar01 Icon : (25 February 2015 - 04:54 PM) @RapSheet: The #Packers released LB AJ Hawk, their former first-round pick. It saves them $3.5M this year, which comes off their cap
Jetsfan0099 Icon : (25 February 2015 - 05:13 PM) @AdamSchefter 58s59 seconds ago
Jaguars expected to hire former Jets GM John Idzik as a consultant, per source.
HarlemHxC814 Icon : (25 February 2015 - 06:04 PM) FIRE IDZIK
ganggreen2003 Icon : (25 February 2015 - 06:52 PM) AJ Hawk getting cut means that the Packers are going to try real hard to lock up Cobb
ganggreen2003 Icon : (25 February 2015 - 06:52 PM) and the Lions released oft injured Reggie Bush
Jetsfan0099 Icon : (25 February 2015 - 07:29 PM) The Packers had the cap space to lock up Cobb regardless
Jetsfan0099 Icon : (25 February 2015 - 07:30 PM) But Bryan Bulaga is also a FA< so they have 2 important guys to re-sign. I think the OT is more important for Rodgers
ganggreen2003 Icon : (25 February 2015 - 09:17 PM) 22 days 21 hours 27 min till FIRST DAY OF SPRING!!!!!
Jetsfan0099 Icon : (25 February 2015 - 10:06 PM) If we get rid of Harvin, Kevin White looks like a nice replacement.
Jetsfan0099 Icon : (25 February 2015 - 10:06 PM) 6'3 runs a 4.35 and had elite production in college
ganggreen2003 Icon : (26 February 2015 - 03:38 PM) NOT SO BREAKING NEWS: WINTER SUCKS
santana Icon : (26 February 2015 - 03:41 PM) Lol Liverpool
santana Icon : (26 February 2015 - 03:42 PM) epl teams sucking ass this year
ganggreen2003 Icon : (26 February 2015 - 04:41 PM) The Jills are negotiating with Josh "Tears of" McCown
ganggreen2003 Icon : (26 February 2015 - 07:24 PM) Now the Browns are trying to woo Josh "Tears of" McCown
MikeGangGree... Icon : (27 February 2015 - 01:59 PM) please please let the browns get him
ganggreen2003 Icon : (27 February 2015 - 06:40 PM) The Browns have signed Josh "Tears of" McCown
MikeGangGree... Icon : (27 February 2015 - 06:43 PM) YES!!
santana Icon : (Yesterday, 12:18 PM) ESPN Jets reporter Rich Cimini speculates free agent Michael Vick may draw some interest from the Ravens.
santana Icon : (Yesterday, 12:19 PM) vick stay here pls
ganggreen2003 Icon : (Yesterday, 05:18 PM) Sucks Anthony Mason died
ganggreen2003 Icon : (Yesterday, 05:19 PM) but Josh "Tears of" McCown is now a perennial loser going from Tampa Bay to Cleveland
ganggreen2003 Icon : (Yesterday, 05:19 PM) going from one cesspool to another
santana Icon : (Yesterday, 09:46 PM) You realize the jets are in cesspool mode as well right?
ganggreen2003 Icon : (Yesterday, 11:29 PM) no we aren't
ganggreen2003 Icon : (Yesterday, 11:29 PM) we are in good shape compared to those 2 other franchises
ganggreen2003 Icon : (Yesterday, 11:29 PM) so I'm not even putting MY JETS in the same category as those lowly Tampa Bay Bucs and Cleveland Browns
HarlemHxC814 Icon : (Today, 02:53 AM) The Jets are a total cesspool
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Get Ready For A 'massive Interest Rate Shock' Soon Bad news for the future economy.

#1 User is offline   azjetfan Icon

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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.

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