Economy 53,058 Posted June 4, 2019 Share Posted June 4, 2019 https://www.bnnbloomberg.ca/stocks-jump-most-since-january-on-jolt-from-u-s-fed-s-powell-1.1268031 US 10 Year Debt Bond: 2.12% Canada 10 Year Debt Bond: 1.4% UK 10 Year Debt Bond: 0.9% Germany 10 Year Debt Bond: -0.21% Earlier this year it was almost 3% in the US for example and 2.6% in Canada! Can't believe we're back to these crazy low rates on government debt and that Germany is being paid to borrow money Trump get your sh*t together these market conditions are not normal at all especially 10 years into an economic expansion Link to post Share on other sites More sharing options...
Gagaloo911 12,959 Posted June 4, 2019 Share Posted June 4, 2019 All this winning on the economy what will the Trumpets win next?? Link to post Share on other sites More sharing options...
JusKeepBreathin 19,311 Posted June 4, 2019 Share Posted June 4, 2019 How do those number compare to right before we went into the recession with Bush? "Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity." -Martin Luther King Jr. Link to post Share on other sites More sharing options...
PartySick 174,103 Posted June 4, 2019 Share Posted June 4, 2019 1 hour ago, JusKeepBreathin said: How do those number compare to right before we went into the recession with Bush? I second this question, Economic king @Economy I'm not surprised though. Bush turned a billion dollar surplus into a trillion dollar deficit. Obama got it down to $400-ish billion, last I checked Trump had it back up to nearly $900 billion. That's just the deficit. Whimsical bitch Link to post Share on other sites More sharing options...
Economy 53,058 Posted June 5, 2019 Author Share Posted June 5, 2019 6 hours ago, JusKeepBreathin said: How do those number compare to right before we went into the recession with Bush? 5 hours ago, PartySick said: I second this question, Economic king @Economy I'm not surprised though. Bush turned a billion dollar surplus into a trillion dollar deficit. Obama got it down to $400-ish billion, last I checked Trump had it back up to nearly $900 billion. That's just the deficit. Federal reserve rates in the US in 2006 went as high as around 5% to 6% (I forget the exact peak but it was somewhere around there) vs 2.25% to 2.5% now (I don't know why the US is the only country that Uses a range in the rate tbh I really don't get it) As for Government Debt bond yields that im talking about in the OP, in before recession 10 year bonds peaked around 4.8% late 2006 and early 2007 A truly healthy economy should have real positive rates. After inflation they are basically 0% and in many countries they are negative when adjusting for real value after inflation Countries are basically being paid to borrow money. They borrow then in real value (after inflation) they pay back less than they borrowed In the case of Germany even without inflation adjustment they are in the negative. I know in Japan rates are crazy low too If the US didn't borrow such huge amounts of money and need a premium on rates offered vs other Countries bond markets, rates would probably be even lower Rates this low this long are not normal and are indicative of chronic structural issues with the economy One is issue is the aging population leading to rise in retirement numbers keeping economic growth and demand growth slow. Recent slow productivity gains are another issue... Stagnant wages are another issue causing low inflation, weak growth and thus also low rates But Trump adding uncertainty to economy with these trade wars all the time is also causing this Bond yields briefly passed 3% within the last year only to fall back down with his rhetoric Link to post Share on other sites More sharing options...
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