U.S. Treasuries Is Dying...Financial Armageddon May Be Approaching (transaction, debt)
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"Selling government debt is a gigantic confidence game. For decades, investors all over the globe have gobbled up massive amounts of U.S. debt at incredibly low interest rates because they believed that it was a certainly that they would be paid back and be able to make a little bit of profit on top of it. Unfortunately, things have changed. Confidence is U.S. Treasuries is dying, and if confidence in U.S. government debt completely collapses at some point we could literally be looking at financial Armageddon"
And I wonder if this statement really is true...... "Unfortunately, Americans have become so dumbed-down that they don't even realize that their leaders are incompetent. In fact, as sad as it is to say, most Americans you will meet on the street probably cannot even tell you what U.S. Treasuries are."
dont confuse the fact that investors want a little more inflation adjustment built into the interest rates with the fact no ones buying them.
one thing you should underdstand , markets always have to have a buyer and seller for each transaction or the transaction cant take place and the price cant be effected. what they bid and ask are something else but you cant have a registered sale without a buyer and seller .
dont confuse the fact that investors want a little more inflation adjustment built into the interest rates with the fact no ones buying them.
one thing you should underdstand , markets always have to have a buyer and seller for each transaction or the transaction cant take place and the price cant be effected. what they bid and ask are something else but you cant have a registered sale without a buyer and seller .
Yes but the Fed is buying our treasuries, printing "money"
I'm a mortgage broker and one of the things we look at is the 10 year bond. QE II started, I think, November 12th and the market was actually supposed to cleanse itself - we expected some volatility but what we are seeing is crazy - I mean, it's not like there is a ton of good news out there all of a sudden?
Is this a Santa Claus rally? Traders like the volatility - they can make some money.
When there is bad news, there was always a flight to safety (bonds). Mortgage rates would improve. Now, we're going the other way which will create problems with housing (not that there aren't any!)
The last thing we need is all this volatility.
My personal opinion - we were doing OK before the QE II - we had the housing stimulus (which went away June 30th but had to be in contract by April 30th) - then the incentive of lower rates helped some make that decision - now, with higher rates and no incentives, it's going to be tough.
Most people I know that were in the process of refinancing or purchasing are now waiting.
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