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That's what you said? No you asked if our debt was about to go bad and what they were suggesting in addition to a line about implications
Whoops...you are correct LE. I meant to imply that China, Brazil, etc are selling because their economies are slowing.
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Originally Posted by HappyTexan
Does not bode well for us because we depend on foreign countries "loaning" us money by buying Treasuries.
From the OP article countries have sold more than they bought for the last 10 months.
Add to that Walmart's big statement today. Walmart is the canary in the coal mine here.
People selling us govt debt doesn't make our debt bad it means they need the cash
Actually it does make our debt bad, if those that we need to buy it are instead selling it then we are in for a world of hurt......you knew this was coming once our Fed started spending trillions buying our own bonds.....didn't make sense then, most definately doesn't make any sense now.
This is the reason why they can't raise the interest rates.....this you can take to the bank....you will know when we finally have a good stable economy when you can put your money into the bank and get a decent return on it.....not going to happen for probably another 10-20 years if ever.
Actually it does make our debt bad, if those that we need to buy it are instead selling it then we are in for a world of hurt......you knew this was coming once our Fed started spending trillions buying our own bonds.....didn't make sense then, most definately doesn't make any sense now.
You are absolutely incorrect, our debt isn't bad until we can't service it. Furthermore bid to cover ratios suggest there is still plenty of demand for our debt, I'm sure you don't know what that is hence part of your lack of understanding
Quote:
This is the reason why they can't raise the interest rates.....this you can take to the bank....you will know when we finally have a good stable economy when you can put your money into the bank and get a decent return on it.....not going to happen for probably another 10-20 years if ever.
Sure the fed can raise rates, them doing so doesn't mean an equal rise in the govt's cost of borrowing it's not linear
Actually it does make our debt bad, if those that we need to buy it are instead selling it then we are in for a world of hurt......you knew this was coming once our Fed started spending trillions buying our own bonds.....didn't make sense then, most definately doesn't make any sense now.
This is the reason why they can't raise the interest rates.....this you can take to the bank....you will know when we finally have a good stable economy when you can put your money into the bank and get a decent return on it.....not going to happen for probably another 10-20 years if ever.
Sure. Just look back to 1980 when I got 13% on MMF. Not very nice and stable with high inflation. Home mortgage was 14%!
you knew this was coming once our Fed started spending trillions buying our own bonds.....didn't make sense then, most definately doesn't make any sense now.
Since Bernanke started QE the unemployment rate has been cut in half, the stock market more than doubled, corporate profits at all time highs, home values up, foreclosures down. It's worked fairly well. The recovery has been slower and weaker than everybody would like but things today are much better than they were 6 years ago.
Quote:
Originally Posted by jdahunt
you will know when we finally have a good stable economy when you can put your money into the bank and get a decent return on it...
It doesn't matter if the bank is paying 0.5% or 6% on savings or CD's. If the bank is paying 6%, the inflation rate is nearly always 6% or higher. The inflation-adjusted return with bank accounts is almost always zero or slightly negative.
The stock tanked 10% yesterday, wiping out Billions in Warren Buffett and Walton wealth.
The decline in WMT has been easy to see. There has been a movement away from Wal-Mart for years now. A lot of these people will never return. I don't short individual stocks much at all, but if I had a top 5 list to short Wal-Mart would have been one of those top five before this decline. Netflix back a few months ago would have been #1. Wal-Mart is struggling to reinvent itself, and it might just be too late for long-term growth in the company. They are really going to have to tap into the natural and healthy products, because that is where the consumer is gravitating toward more and more. WMT did not prepare for this in time, and a lot of these consumers in this space will not touch Wal-Mart again in its current form for this reason, and given its history with questionable ethical practices.
I got criticized about a month ago or so for saying Warren Buffet has lost his luster, is out of touch, and there are many better investors to follow these days. But I think this is a perfect example of how he is out of touch with the current consumer.
The decline in WMT has been easy to see. There has been a movement away from Wal-Mart for years now. A lot of these people will never return. I don't short individual stocks much at all, but if I had a top 5 list to short Wal-Mart would have been one of those top five before this decline. Netflix back a few months ago would have been #1. Wal-Mart is struggling to reinvent itself, and it might just be too late for long-term growth in the company. They are really going to have to tap into the natural and healthy products, because that is where the consumer is gravitating toward more and more. WMT did not prepare for this in time, and a lot of these consumers in this space will not touch Wal-Mart again in its current form for this reason, and given its history with questionable ethical practices.
I got criticized about a month ago or so for saying Warren Buffet has lost his luster, is out of touch, and there are many better investors to follow these days. But I think this is a perfect example of how he is out of touch with the current consumer.
Buffet is big on diversification.
The Walmart slide did not hurt BRK-B at all.
In fact that closed up 2.62 today.
That earnings would decline up to 12% for the fiscal year ending January 2017. Analysts were expecting a gain of 4% for the same period.
The stock tanked 10% yesterday, wiping out Billions in Warren Buffett and Walton wealth.
So what?
People care because it was a quick correction. WalMart is down 30% from the beginning of the year. Even if the analysts didn't know the earnings were looking weak, the market did. Just not that weak.
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