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MikeGangGree... Icon : (22 July 2014 - 04:39 PM) Going to the Giants and Texans game also. 2 games in 2 days. WOOOOO
Jetsfan0099 Icon : (23 July 2014 - 09:36 AM) players are reporting to camp today, tomorrow is the first practice!
Jetsfan0099 Icon : (23 July 2014 - 09:36 AM) Football is almost back!
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Jetsfan0099 Icon : (24 July 2014 - 08:46 AM) lol first practice today
Jetsfan0099 Icon : (24 July 2014 - 08:47 AM) I've been really busy lately, been working 60+ hours a week. plus there hasn't been much to talk about.
HarlemHxC814 Icon : (24 July 2014 - 08:58 AM) Yeah this has been the most dead offseason in quite some time
Jetsfan0099 Icon : (24 July 2014 - 09:59 AM) maybe people will start coming back now that camp is starting up
Jetsfan0099 Icon : (24 July 2014 - 11:46 AM) Geno had a strong first practice, went 7-10
Jetsfan115 Icon : (25 July 2014 - 02:51 PM) site's kinda been dead for years now. even during last season.
HarlemHxC814 Icon : (25 July 2014 - 03:28 PM) Yeah I know but it hasn't been this dead
Mr_Jet Icon : (26 July 2014 - 02:02 PM) When the team was winning and going to AFC Championship games the site had a lot of activity. But now after a couple of mediocre seasons, people don't want to talk.
Mr_Jet Icon : (26 July 2014 - 02:04 PM) When the team starts winning again people who have been MIA will be back saying that they never left.
518-JeTS-FaN Icon : (27 July 2014 - 07:07 AM) wats good everyone!. been awhile since i last posted anything but i always come on here to read and see whats new
ganggreen2003 Icon : (27 July 2014 - 06:33 PM) SUP BITCHES!!!!
HarlemHxC814 Icon : (27 July 2014 - 07:33 PM) Oh it's you
RetireChrebet Icon : (27 July 2014 - 08:49 PM) Harlem, great way to encourage user activity!
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Jetsfan0099 Icon : (28 July 2014 - 04:37 PM) lol
ganggreen2003 Icon : (28 July 2014 - 05:36 PM) Still being a dick huh Harlem?
ganggreen2003 Icon : (28 July 2014 - 05:36 PM) Shit hasn't changed much since the 2013 JETS season
santana Icon : (28 July 2014 - 06:26 PM) yep everyone is still dicks
MikeGangGree... Icon : (28 July 2014 - 06:50 PM) .[43] Moments later, during a live post-game interview with Fox Sports' Erin Andrews, Sherman emotionally shouted, "Well, I'm the best corner in the game! When you try me with a sorry receiver like Crabtree, that's the result you gonna get
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Chaos Icon : (29 July 2014 - 11:16 AM) any news on Amaro? havent seen anything on twitter.
ganggreen2003 Icon : (29 July 2014 - 03:56 PM) only 39 days 20 hours and 3 min to go till the JETS kick off the season on Sept 7th at 1pm against the Oakland Raiders
HarlemHxC814 Icon : (29 July 2014 - 03:59 PM) Amaro practiced today in full pads
ganggreen2003 Icon : (29 July 2014 - 08:21 PM) 42 Days 39 min till Sons Of Anarchy FINAL SEASON starts
Jetsfan0099 Icon : (29 July 2014 - 08:42 PM) Amaro has a lingering sore tendon
Jetsfan0099 Icon : (29 July 2014 - 08:43 PM) I've read that hes been up and down so far
Jetsfan0099 Icon : (29 July 2014 - 08:44 PM) Dexter McDougle has been looking really good
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Chaos Icon : (Today, 03:40 PM) now that was a busy MLB trade day
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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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