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Why Rates Will Stay Low (Or What Happens When You Cry "Recovery" For 5 Years In A Row)
Deutsche Bank's Torsten Slok summarizes the various factors driving interest rates up (and down) noting that even if The Fed turns hawkish, other factors remain crucial narratives for lower long-term rates... most notably #6: 'Recovery Hope' Exhaustion.
Source: Deutsche Bank
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Again, it would appear that these fuckers really do stink of desparation. Interesting. We all know the real forces the that should be pushing rates up, namely risk, but with an implicit agreement to rape the taxpayer at the slightest sign of failure...
tick tock motherfuckers...
Title: Why Rates Will Stay Low
Wrong!
Right title: Rates should be zero.
Why should counterfeited paper have any value?
Yes, but I was refering to the real cost of capital. Capital is not money, and certainly not "counterfeited paper". You want to build anything fucking real, you need capital.
I hope you understand that, most folks around here got that in 2008. I was fortunate to have a WWII and great depression survivor that schooled me on this in the 70's.
:-)
The FED cannot raise rates because they will bankrupt the US if they do. It really is that simple.
Do you eat food or do you eat money?
Do you eat gold or do you eat food?
Do you drink oil or do you drink water?
Do you need energy to extract or prepare things mentioned above or not?
Who's energy?
New oil relies on lots of debt. Shale drillers are selling 2019 oil to raise CASH now.
All while rate of shale decline is about 7% A MONTH.
I guess we can always go back to slave so the FREE MARKET can get its yield or EBITDA.
Or, that Jesus and gold will safe us.
It makes me wonder what worthless things the youth are learning in schools and college.
Because sure most adults haven’t grasped yet… until, of course, it will be too late for all these nonsense.
There’s NO escape for the coming horrible reset. When, pretty much, all will settle where it should be, pennies on this counterfeited economy.
http://peakoilbarrel.com/eias-drilling-productivity-report/
Watched a video the other day on USAWatch in which it was said that JPM had like 10-15 Big Felonies against it. Think this was last year.
- I wonder what ever happened on those 10 Big Felonies.
- I see US Regulators tried to slap a French & a German Bank
- US Does some posturing, but with 15 Rate Fixing Scandals which way is this going to go
Feels like there isn't enough money in US Accounts for Bail-Ins to work.
If something triggers a derivatives meltdown and one or two of the counterparties goes under, you bet your ass that there isn't enough money in US Accounts for Bail-Ins to work. Of the top four banks for derivatives exposure, JPM, Citi and BofA have stuffed them into their FDIC insured deposit taking subsidiaries. Without going to go look up the exact numbers, between those three, there are over $150 Trillion (notional) in derivatives backed (LOL) by the FDIC, and thus, the tax donkeys in the US. What is the M2 supply again? $11 trillion or so?
They paid some 10's of billions in fines and settlements to make the felonies go away (after making 50?, 100?, 500? billion off of those felonies)
So, it turns out there is never a good day to give up heroin?
FYI just dont ever plan running out...withdrawal is a bitch.
Listen. Let me be clear. This is an example of how authors should "TWEET" their messages out to the space monkey's.
Well done.
If the authors seek to add additional "INFORMATION" then get an account and add it into the comments.
they prefer to kill us all than to lose their money
Let them keep "their money". Simply don't accept it in exchange for your labor.
without the sheep it dosnt work I stopped working 4 mos ago and living on my savings and everyone still accepting it but I say I wont work pay taxes or play thier game any more. I've saved for a long time I'm 46 and just watching the show maybe tomorrow starts the grand fuck but I'm not the sucker paying for all the worthless people to eat go to strip clubs smoke pot and all the other govt cheese they hand out to the rats. now if all producers would do like me the game would be over then what Obozo
Very good strategy. I have been doing it for 15 yrs.
2008 changed everything. They are all working together now.
yes. 2008, 2009, 2010, 2011. 2012, 2013. 2014= going on 7 years of "recovery" not 5
First Japan, and now Europe. The US ten year will eventually also be under 1%.
In the limit of pure monetization, bonds of any duration and cash are basically the same.
With negative rates (who wouldathunkit ten years ago) showing up in Europe and Japan, how can rates in the U.S. possibly go up?
Of all commodities, money is the most fungible.
The real title should be "Why Rates Will Stay Low: Because the US Government Wouldn't Be Able To Service Its Debt Otherwise and Bankers Would Get The Shaft."
worthless. every single point on both sides is bullshit.
In addition to the already stated, how will our diseased government be able to execute negative interest rates (thus driving happy senoiors into stocks) if they allow us to make 4.0% on a I Grade bond. Many seniors have stocks that are paying nice dividends but would love to switch over to a IG bond that pays a decent yield. They are stuck, they know it, people with money know it.
Would you like a medium or large popcorn?
Duh! Really? It f---ing works doesn’t it? Keep rates near zero for decades or watch a total debt-driven economic collapse. Get the unemployed lemmings to wait in line for days with their MasterCards to buy yet another ‘new’ I-Phone. Get millions to go into further into debt to buy new sheet metal, when what they drive works just fine. Keep buying those treasuries to keep the government from defaulting and rates rising. Print, print, print. Apparently the bloodied bears are just now realizing this can go on for a lot longer than they can remain solvent. The Fed has removed all downside risk and we are on a permanently high plateau. This level of intervention has never been done before. If they fail, they know it all comes apart fast. Yes, they will go to negative rates, if need be.
Just curious.. does anyone know the percentage of people that are considered 'awake'?..
Not the "sheeple' as their so kindly referred to as.
What is the percentage of people that dont believe the msm story?..
3%..
Does anyone have this figure?
A few more years of this recovery and we'll all probably be dead.