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Just wait until interest rates tick up and that payment on the debt goes up like Ron Jeremy on a porn shoot. Look out!!
There is the sucker punch coming for all the little idiots out there. It is going to hit harder than they can even fathom. Housing market will crash... HARD and all the little twits out there living fancy free with mega-debt on variable interest rates are going to be introduced to the concept of poverty.
Frankly, I am looking forward to it. Interest rates rising means great opportunities in various saving investments as well as real estate prospects when property values plummet (ie those who plan on paying off quickly due to total cost as opposed to the idiots who always think in terms of minimum payment).
There is the sucker punch coming for all the little idiots out there. It is going to hit harder than they can even fathom. Housing market will crash... HARD and all the little twits out there living fancy free with mega-debt on variable interest rates are going to be introduced to the concept of poverty.
Frankly, I am looking forward to it. Interest rates rising means great opportunities in various saving investments as well as real estate prospects when property values plummet (ie those who plan on paying off quickly due to total cost as opposed to the idiots who always think in terms of minimum payment).
Shhh....Lord Balfour is coming in 4.....3....2.....
There is the sucker punch coming for all the little idiots out there. It is going to hit harder than they can even fathom. Housing market will crash... HARD and all the little twits out there living fancy free with mega-debt on variable interest rates are going to be introduced to the concept of poverty.
.
I think they already were in 2008.
However, there will always be new suckers coming along...
Should be interesting to see how far it crashes when the spigot is totally shut off.
The market will go down a bit, but it will be temporary and will be MORE than offset by the gains made this year alone.
If you want to see what's REALLY taking a hit from the Fed exit talk, take a look at GOLD!!!
Gold is down over 100 points (about 8%) yesterday and today. Gold losses are DWARFING stock market losses - and this is all ON TOP of the massive gold losses since it's peak 2 1/2 years ago. As I've been saying, gold is going to drop to $1100/ounce (maybe even lower) as it sinks in that there will be NO major inflation - and what we are seeing today and yesterday with gold is EXACTLY that. ALL this time gold has been run up on the expectation that there will be some major inflation. Problem is, that ASSumption was wrong all along. Now here we are with the Fed about to start the exiting process and there is STILL no sign of all that inflation the gold bugs have been waiting for - consequently, gold is taking a HUGE hit.
It's turning out that GOLD has been a LOT more dependent on QE than the stock market has been.
Oh, the irony.
"Gold prices tumbled to their lowest in more than 2-1/2 years on Thursday, and silver fell more than 6 percent after the U.S. Federal Reserve gave its most explicit signal yet that it plans to bring the era of easy money to an end.
Gold plunged after Fed Chairman Ben Bernanke said on Wednesday the U.S. economy was expanding strongly enough for the central bank to begin slowing the pace of its bond-buying stimulus later this year...
...We're seeing a stronger U.S. dollar, real rates are looking quite strong, inflation is very low and U.S. 10-year yields are at 2.4 percent. In that environment, gold is going to suffer..."
Just wait until interest rates tick up and that payment on the debt goes up like Ron Jeremy on a porn shoot. Look out!!
Most of the US debt is at a fixed rate of interest determined when the bonds were sold (and for the past few years that rate is REALLY low). Consequently, rising interest rates have little effect on the existing US debt (the exception are TIPS - which are a relatively small part of the total US debt). NEW debt taken on as rates rise WILL be affected, but most of the existing US debt will not.
Am I a wizard?
No, of course not - just someone who knows and pays attention to history.
I've seen this all play out with gold before.
I'm also well aware of the fact that - despite all the hype - as a percentage of the GDP, the US debt is SMALLER now than it was in 1945, so the size of the debt is hardly in insurmountable problem - certainly not one that necessarily has to lead to major inflation (especially when so much of the US debt is actually held by the US government ITSELF).
Hardly all Bernanke's doing. The Dow has been on a run this week, if you knew anything about the markets you'd know a correction was due. 2% drop is hardly significant, especially looking at the whole week in terms of movement.
Shhh....Lord Balfour is coming in 4.....3....2.....
will he be bringing two pom-poms in each hand?
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