Monday, November 11, 2013

Has the Fed Lost Control of Interest Rates & the Bond Market?


Is the 10 Year about To Breakout of This Long Term Monthly Range into the 5-6% Range?

Is the 30 Year about to Breakout of this Long Term Monthly Range to 8%?

TLT is the 30 Year Bond vs S&P 500


Value of the Dollar Decline

Liquidity Bubble?

Easy money (restrictions to borrowing relaxed by governments and lending institutions), falling interest rates, printed money (money created by government printing presses rather than fundamental economic activity), a massive build up of consumer debt, Government debt and to a lesser extent business debt. This combination allowed asset prices to rise well beyond realistic levels and resulted in both the collapse of asset prices and took the global economy itself to the brink of collapse. Stimulus packages, quantitative easing and general printing of money by central banks are short term fixes to the long-term problems of spending money you don't have.  Charles Ponzi would be proud.    

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