Economy 53,059 Posted June 20, 2019 Share Posted June 20, 2019 https://www.bnnbloomberg.ca/u-s-bond-yields-fall-below-2-as-trump-whipsaws-stocks-1.1274479 Concerns about the economy and expected drops in interest rates have pushed US 10 year bonds back below 2% Rates are now almost as low as they were before the Central Bank (Federal Reserve) began raising rates Link to post Share on other sites More sharing options...
Spanish Eyes 2,315 Posted June 20, 2019 Share Posted June 20, 2019 Link to post Share on other sites More sharing options...
Economy 53,059 Posted June 20, 2019 Author Share Posted June 20, 2019 31 minutes ago, Spanish Eyes said: It's self explanatory lol Link to post Share on other sites More sharing options...
Economy 53,059 Posted June 20, 2019 Author Share Posted June 20, 2019 @Luc @Woolfsmck @PartySick Economy will never become sustainable as long as rates are this low constantly Link to post Share on other sites More sharing options...
FABian 852 Posted June 20, 2019 Share Posted June 20, 2019 2020 recession was true Time to start buying Link to post Share on other sites More sharing options...
Economy 53,059 Posted June 20, 2019 Author Share Posted June 20, 2019 7 minutes ago, FABian said: 2020 recession was true Time to start buying Honestly I think we need one anyway If we have one now it will be more mild than if it's later but it will show just in time for those fools that Trump is no economic genius Link to post Share on other sites More sharing options...
Spanish Eyes 2,315 Posted June 20, 2019 Share Posted June 20, 2019 43 minutes ago, Economy said: It's self explanatory lol I was a Spanish major, sis. lol This is not self-explanatory to me. What is the significance of the debt interest going below 2%? Link to post Share on other sites More sharing options...
Economy 53,059 Posted June 20, 2019 Author Share Posted June 20, 2019 5 minutes ago, Spanish Eyes said: I was a Spanish major, sis. lol This is not self-explanatory to me. What is the significance of the debt interest going below 2%? It shows extreme pessimism for economic growth among investors If investors and institutions are investing money in bonds that much (pushing yields way down) it's because they lack confidence in stocks and other riskier Investments right now It also suggests they expect interest rates to drop and are locking fixed income as it is now before it drops further Here in Canada 10 year bonds are at 1.5%.... in Germany they are at -0.28% Several things influence a Countries interest rates: - Size of debt and deficits. If government needs to borrow more than interest must go up in order to attract enough investors to cover shortfall - Credit Rating. Countries with a good credit rating can borrow cheaper cuz they are seen as less risky - The rate the Central Banks of each Country set as they try to keep economic growth sustainable and inflation stable. That rate has some influence on the general cost of credit on the entire system including private debt not just government - inflation is a factor. If inflation is higher investors may demand higher rates to cover it - Good or bad economy. Generally when economy is stronger rates go up because Central Bank tends to raise rates plus more money goes to stocks and government has to compete with higher rates to attract money. When economy is weak and investors was a safe investment, government bond interest rates tend to drop Link to post Share on other sites More sharing options...
Economy 53,059 Posted June 20, 2019 Author Share Posted June 20, 2019 @Spanish Eyes I see u reacted to my comment before I finished editing it I explained in more detail how rates change Link to post Share on other sites More sharing options...
PartySick 174,103 Posted June 20, 2019 Share Posted June 20, 2019 1 hour ago, Economy said: Honestly I think we need one anyway If we have one now it will be more mild than if it's later but it will show just in time for those fools that Trump is no economic genius Yes. Sooner rather than later so Trump is to blame, not whatever Democrat beats him in 2020. Not sure what anyone expected, Dumpty did the same crap that Bush and other GOP presidents/leaders did that ended up ruining our economy. Thank god for people like Bill Clinton and Barack Obama Whimsical bitch Link to post Share on other sites More sharing options...
FABian 852 Posted June 20, 2019 Share Posted June 20, 2019 1 hour ago, Economy said: Honestly I think we need one anyway If we have one now it will be more mild than if it's later but it will show just in time for those fools that Trump is no economic genius Lol. I feel like its gonna be part of his campaign. Mark my words there will be promises.... Link to post Share on other sites More sharing options...
FABian 852 Posted June 20, 2019 Share Posted June 20, 2019 6 minutes ago, PartySick said: Yes. Sooner rather than later so Trump is to blame, not whatever Democrat beats him in 2020. Not sure what anyone expected, Dumpty did the same crap that Bush and other GOP presidents/leaders did that ended up ruining our economy. Thank god for people like Bill Clinton and Barack Obama Girl this coming recession has been coming since 2008. Way before trump's time. He just got the but end of it. Lmao. Recessions dont happen after just 2-3 years Link to post Share on other sites More sharing options...
Economy 53,059 Posted June 20, 2019 Author Share Posted June 20, 2019 2 minutes ago, PartySick said: Yes. Sooner rather than later so Trump is to blame, not whatever Democrat beats him in 2020. Not sure what anyone expected, Dumpty did the same crap that Bush and other GOP presidents/leaders did that ended up ruining our economy. Thank god for people like Bill Clinton and Barack Obama What did bush do???? Besides the push for fanae Mae and Freddie Mac I mean? Also Obama really didn't do anything that significant for the economy other than the bailouts tbh Link to post Share on other sites More sharing options...
Economy 53,059 Posted June 20, 2019 Author Share Posted June 20, 2019 Just now, FABian said: Girl this coming recession has been coming since 2008. Way before trump's time. He just got the but end of it. Lmao. Recessions dont happen after just 2-3 years No but he's done stuff to create uncertainty and reduce investment His trade wars are having a measurable impact on the cost of certain things impoverishing consumers and raising costs of home builders and things like shale crackers He's not that smart with the economy Then he has the nerve to call it the best economy ever but keeps criticizing the fed for keeping rates "too high"... Like if the economy was so perfect it wouldn't need still historically low rates of 2.5% to sustain it. He sounds like a fool to anyone that understands economics even a little bit Link to post Share on other sites More sharing options...
Snorlax 6,387 Posted June 20, 2019 Share Posted June 20, 2019 Does this mean my student loan interest is recessing lol Link to post Share on other sites More sharing options...
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