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Bonds & Interest Rates

Biggest loss in 26 years …

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Posted by Larry Edelson - Money & Markets

on Friday, 25 November 2016 08:50

Sovereign debt markets are taking a shellacking. Per a recent Bloomberg article, global bond markets had their worst two-week period in 26-years.

Thing is, it’s just beginning. As I have told you all along, the world is facing a great sovereign debt crisis — the likes of which has not been seen since at the Great Depression.

Back then, virtually all of Europe went bankrupt. Fears of government bankruptcies swept the world, enveloping Japan, China and even the U.S. — even though we were a creditor nation back then.

But this time, it’s going to be a whole lot worse. This time, it isn’t just the countries of Europe that are bankrupt.

Screen Shot 2016-11-25 at 7.41.09 AMThis time, it’s Europe, Japan and the United States — all bankrupt, all scrambling to come up with solutions to kick the can down the road some more, and all in deep doodoo.

Think President-elect Trump will make a difference and solve the problem? I don’t. Especially if he gets tough on trade, which will demolish our economy. Some think it will cause inflation and thereby erode the burden of our debts.

But that’s a joke. Even if — as some contend — the value of the U.S. dollar went to zero, you would not be able to write off through inflation or even hyperinflation the near $200 trillion Washington owes.

Moreover, trade wars are usually contractionary and deflationary.

So, get ready. The great sovereign debt crisis of the 21stcentury has started. It’s a financial storm that comes around roughly every 80 years.

It can wipe out anything and everything that gets in its way. To protect your family, your wealth and health — you must have a plan.

The first step in that plan is to not touch sovereign or government bonds of any kind. Or of any country.

Best wishes,

Larry

moneyandmarkets.com



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Bonds & Interest Rates

Now it Begins to Unravel

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Posted by Wolf Street

on Thursday, 24 November 2016 08:48

US-treasury-10-yr-yield-2016-11-18The Credit Bubble Peak was Marked by “Totally Crazy Lending.”

Debt is good. More debt is better. Funding consumer spending with debt is even better – that’s what economists have been preaching – because the consumed goods and services are gone after having been added to GDP, while the debt, which GDP ignores, remains until it is paid off with future earnings, or until it blows up.

Corporations too have gone on a borrowing binge. Unlike consumers....continue reading HERE

...related: 

Bond Carnage hits Mortgage Rates. But This Time, it’s Real



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Bonds & Interest Rates

Key Focus: Did The "Trump Tantrum" Just Trigger The Next US Recession?

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Posted by Gordon T. Longong

on Tuesday, 22 November 2016 08:02

TRUMP MAY HAVE "PRICKED" THE GLOBAL BOND BUBBLE

Trump called during the campaign for a $1 trillion infrastructure package, $5 trillion in tax cuts, increases in military spending and the repeal ObamaCare, which could cost more than $350 billion over 10 years. At the same time, the president-elect has promised “not to touch” Social Security or make cuts to Medicare. The moment Trump was elected the markets immediately reacted to this potential massive fiscal injection. Bond values plummeted as yields spiked.

11-19-16-MATA-DRIVERS-YIELD-Bond Market Collapse-Biggest-in-25-Years

 

....continue reading HERE

 

...related from Michael Campbell's interview with Dr. Michael Berry:

The Fed is Throwing Up Its Hands



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Bonds & Interest Rates

The Fed is Throwing Up Its Hands

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Posted by Michael Campbell & Dr. Michael Berry PhD & Dr. Michael Berry PhD

on Monday, 21 November 2016 07:30

Dr. Michael Berry shares some of the evidence he'll be presenting to the US Federal Reserve. Dr. Berry of the Disruptive Discoveries Journal, is a sought after analyst on resource policy and investing. In this interview he makes sense of the dramatic moves post election, especially in fixed income and what the Fed is likely to do. Diversification right now is critical in his view.

...Michael's Saturday Editorial: The Truth - Its Time to Blow It All Up

volatility 0

 



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Bonds & Interest Rates

Bond-market losses may hit 40% - Retirees most vulnerable

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Posted by MarketWatch

on Thursday, 17 November 2016 09:21

5-1“The typical investor today has never experienced a sustained rising-rate environment and they are emotionally and historically unprepared for what happens when interest rates go up 3% or 5%,” 

Millions of Americans “are engaging in a variety of risky behaviors, often without knowing what they’re doing. They’re setting themselves up to lose a lot of money over the next several years, perhaps as much as they lost in 2008 in stocks.”

Many investors, especially retirees, could suffer 2008-style losses — this time in “safe” bonds.
 
 
....related from Michael Campbell:
 
 
 


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