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Roaring Interest Rates
From the Slope of Hope: There is no nuance to what I'm going to say: interest rates are pushing higher, and this is going to be a millstone around the neck of the world economy.
Now, the permabulls have been conditioned over the past six phony years to refute any assertion that anything could be bad for the market. Yesterday, for instance, when I snarkily pointed out ETSY's horrible performance (which, incidentally, is shadowed by today, which has brought the stock to a new lifetime low). one of the more perpetually bullish Slopers remarked that ETSY's rotten performance was a sign of a healthy bull market.
The conjecture, I suppose, was that since there were actually some IPOs going down, it showed what a prudent, rational market we were in.
Wrong, wrong, wrong!
Months before the NASDAQ bubble burst in March 2000, the crummier stocks started dropping badly. Indeed, three months before the Internet bubble spewed creamy white loss goo over everyone's faces, plenty of well-known Internet stocks had already been cut by 50%, 70%, or even more. ETSY, I contend, is - - like Angie's List - - simply a particularly bad stock, and its rotten performance certainly is no assurance that the market is populated by people in their right minds.
Having said that, I offer the chart below. Bonds are falling to pieces, and interest rates are roaring higher. Need I remind you that the whores of D.C. and the Federal Reserve have put the United States $18 trillion in debt (and I'm not even talking about unfunded liabilities) and that each basis point in interest rates simply makes the country worse off? To say nothing of the fact that the entire globe (China, the Eurozone, Japan) are likewise awash in debt which, last time I checked, is sensitive to interest rates.
The floorboards are beginning to bow and splinter, people. Can you hear the crackling, or would you prefer to go on deaf to what your senses are telling you?
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There's a war on cash, and you're giving away your cash to buy gold? Not yet...
The last time TLT was here 117, there was a 35% move up to 138.
That's rip your face off I don't want just because some old lady has a spell.
I have every confidence that the central banks of the world will print/borrow more money to buy the rates down if it gets out of hand. The analogy is that if a few plates drop while they are spinning a set, they will always print more.
Consequently, I'm 100% certain it will be balanced on the peons/peasants backs of the world. The new peasant class is the middle class, the poor will continue to be subsidized. The middle/upper middle/lower rich classes will pay with continued inflation.
Absolutely. The Fed and other central banks know that low interest rates are essential to keeping the Ponzi plates spinning. So they'll print and let others worry about the eventual inflationary impact.
"...interest rates are pushing higher, and this is going to be a millstone around the neck of the world economy."
Hardly new news...
http://www.globaldeflationnews.com/10-year-u-s-treasury-index-yieldellio...
Fuck it !
Silver...all in !
I agree. "Calling junk Junk" is not news.
"yield hungry investors" are always on the hook.
They've 'triaged' their favorites and now it's time for 'capital' to start paying them back.
I do wonder if the author ever worked for the SEC, given his choice of imagery.
or Penthouse, maybe Hustler.
Dont recall reading background - but Tim has been running a pretty solid trading blog for quite some time. I have lurked on The Slope and a few other sites like Evil Speculator for many, many years. Most of these guys, Tim included, have been good about putting it out there and owning up to bad calls. Is a game/casino anyhow. Also, quite a few of us threw some good $ into the wood chipper early on trying to go short equities. Got bitch slapped by Ben.
Yep, the Central Banksters are losing control.
Look out below.
Hope and change. I have no hope and very little change.....
Tim Knight? Pshhhhhh!
https://www.youtube.com/watch?v=khfiJ9q6IqI