The Financial Bubble

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·@davidmlesley·
0.000 HBD
The Financial Bubble
THE FINANCIAL BUBBLE?... As if Greece wasn’t an “eye opening” experience for the world then losing your ability to withdraw money from your Bank will be the slap in the face you’ll need to finally wake up… The “Housing Market” i.e. Credit Crisis; was one of MANY fingers pointing to the manipulation of the Federal Reserve, including Central Banks around the world. Following the bursting of the tech bubble and the recession of the early 2000s, the Federal Reserve kept short-term interest rates low for an extended period of time. Rising home prices led to retarded real estate speculation, and also fueled idiotic consumer spending as people began to view their homes as a "piggy bank.” As home prices soared and many homeowners "stretched" to make their mortgage payments, then the collapse slapped our Markets in the face. Subprime credit stopped completely and interest rates for credit for other types of borrowing including corporate loans as well as consumer loans rose dramatically… BUT WHERE IS THE NEXT BURST? NOT WHEN BUT WHERE… Right now, the biggest market with eyes focused intently on it is the “Bond” Markets… A hypothetical rapid reversion of rates to 2011 levels for $37.7 trillion worth of investment grade sovereign bonds could drive market losses of as much as $3.8 trillion … Watch Japan’s Bond Market… Considering Japan’s Government Pension Fund is invested HEAVILY into our market; furthermore, more than 50% of the U.S. Bond Market is owned by Foreign interest; not U.S. investors… Plus, foreign central banks and government institutions sold $57.2 billion of U.S. Treasury debt and other notes this past January… Keep your eyes peeled…
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