Interest rates are going up. Could be the pin prick that pops that bubble

[Natural Citizen]

By my calculation, even a 5 percent rate hike adds a trillion Federal Reserve Notes per year to the growing deficit. Or roughly thereabout. That's about 200 billion Federal Reserve Notes per 1 percent increase on the interest rates. Spending is up about 7 percent and revenue has gone up a whole 1 percent in this so-called booming economy, so this isn't helping the deficit.

They aren't going to have any control over it, and the market will have to respond to reflect the truth of the matter.

In the summer of 2016, the 10 year bond was sitting at 1.3 percent. Now it's over 3 percent. That's a big jump percentage wise. So, we've already been observing rate hikes, irrelevant of any prospective rate hikes to come.

This is pointed more toward the market folk, Toddster, Mack, and kind.

What say you? I'm calling a bust sooner than later, I think thta interest rate hikes are likely going to be the pin prick which finally does it.

 

[AzogtheDefiler]

Rising rates will slow growth and we ll see a potential downfall in 2020...just in time for the election. The Fed has gone nuts.

 

[Oddball]

The Fed has to try and claw back the nearly $4 trillion they've pumped into Wall Street somehow...It's a ticklish game of monetary chicken, that holds the lives of hundreds of millions in the balance.

 

[rightwinger]

As long as it is slow, the economy should absorb it

 

[martybegan]

As long as it is slow, the economy should absorb it

True, interest rates had to go up sooner or later.

 

[AzogtheDefiler]

As long as it is slow, the economy should absorb it

Define slow

 

[Oddball]

As long as it is slow, the economy should absorb it

Obviously oblivious to the fact that the increased costs of servicing the $21 TRILLION in debt owned by the feds will drive them towards default, no matter what the economy does.

 

[candycorn]

Housing is the catalyst. You don't buy a new TV set if you don't have a house. You don't buy a new lawnmower if you live in an apartment or any other durable good.

Interest rates rising hurts the catalyst most of all.

 

[martybegan]

As long as it is slow, the economy should absorb it

Obviously oblivious to the fact that the increased costs of servicing the $21 TRILLION in debt owned by the feds will drive them towards default, no matter what the economy does.

Doesn't the rate only go up for new debt, not the old issued debt?

 

[frigidweirdo]

Rising rates will slow growth and we ll see a potential downfall in 2020...just in time for the election. The Fed has gone nuts.

But then if they keep things rising, it'll be worse for the country.

Why should politics come before people being able to live? Is that nuts?

 

[Dont Taz Me Bro]

As long as it is slow, the economy should absorb it

Obviously oblivious to the fact that the increased costs of servicing the $21 TRILLION in debt owned by the feds will drive them towards default, no matter what the economy does.

I think we are heading in that direction regardless. They clearly have no intention of slowing they’re spending habits

 

[AzogtheDefiler]

Rising rates will slow growth and we ll see a potential downfall in 2020...just in time for the election. The Fed has gone nuts.

But then if they keep things rising, it'll be worse for the country.

Why should politics come before people being able to live? Is that nuts?

You tell me. I think the rates are rising too quickly.

 

[Oddball]

As long as it is slow, the economy should absorb it

Obviously oblivious to the fact that the increased costs of servicing the $21 TRILLION in debt owned by the feds will drive them towards default, no matter what the economy does.

Doesn't the rate only go up for new debt, not the old issued debt?

The Impact of a Fed Interest Rate Hike

 

[frigidweirdo]

Rising rates will slow growth and we ll see a potential downfall in 2020...just in time for the election. The Fed has gone nuts.

But then if they keep things rising, it'll be worse for the country.

Why should politics come before people being able to live? Is that nuts?

You tell me. I think the rates are rising too quickly.

Are they rising too quickly for your interests, or are they rising too quickly for the interests of the country?

The problem with the US is that boom and bust is enriching the already rich and killing the poor.

To have the second largest recession ever at a time when people understand economics better than ever, is ridiculous. Surely recessions should be getting less bad, not worse.

It seems like it's an actual policy.

7 million people lost their homes in the last recession. Not one of them was one of the people who make the policies.

Some rich people gained billions of dollars speculating.

 

[caddo kid]

By my calculation, even a 5 percent rate hike adds a trillion Federal Reserve Notes per year to the growing deficit. Or roughly thereabout. That's about 200 billion Federal Reserve Notes per 1 percent increase on the interest rates. Spending is up about 7 percent and revenue has gone up a whole 1 percent in this so-called booming economy, so this isn't helping the deficit.

They aren't going to have any control over it, and the market will have to respond to reflect the truth of the matter.

In the summer of 2016, the 10 year bond was sitting at 1.3 percent. Now it's over 3 percent. That's a big jump percentage wise. So, we've already been observing rate hikes, irrelevant of any prospective rate hikes to come.

This is pointed more toward the market folk, Toddster, Mack, and kind.

What say you? I'm calling a bust sooner than later, I think thta interest rate hikes are likely going to be the pin prick which finally does it.

Republicans should be happy; Trump is POTUS, things are GREAT, and interest rates are rising accordingly.

Everything good has it's negatives; right?

MIRGA = make interest rates great again

This is exactly what happens when a few assholes over heat the economy; go Trump.

 

[Natural Citizen]

Obviously oblivious to the fact that the increased costs of servicing the $21 TRILLION in debt owned by the feds will drive them towards default, no matter what the economy does.

Yep. And by default, the market has to respond. If that happens, I think everyone will know what we're talking about here.

As an aside kind of thing, recall that Trump, to his credit, did acknowledge that we were, as he put it, ''in a big fat ugly bubble. '' That was during his debate with Clinton prior to the general election, when he was talking about the artificially low interest rates and the very political Federal Reserve.

Trump: We Are in a Big Fat Ugly Bubble – Bloomberg

Only difference now is that he's kind of stamped his name on that big fat ugly bubble. Crazy.

By default, the market must respond when the already artificial interest rates start rising. I see no way to avoid reality.

 

[william the wie]

As long as it is slow, the economy should absorb it

Obviously oblivious to the fact that the increased costs of servicing the $21 TRILLION in debt owned by the feds will drive them towards default, no matter what the economy does.

I think we are heading in that direction regardless. They clearly have no intention of slowing they’re spending habits

The use of dollar denominated debt in the third world and China's 4X GDP total debt are more likely triggers. The US is the pick of an extremely ugly litter

 

[AzogtheDefiler]

Rising rates will slow growth and we ll see a potential downfall in 2020...just in time for the election. The Fed has gone nuts.

But then if they keep things rising, it'll be worse for the country.

Why should politics come before people being able to live? Is that nuts?

You tell me. I think the rates are rising too quickly.

Are they rising too quickly for your interests, or are they rising too quickly for the interests of the country?

The problem with the US is that boom and bust is enriching the already rich and killing the poor.

To have the second largest recession ever at a time when people understand economics better than ever, is ridiculous. Surely recessions should be getting less bad, not worse.

It seems like it's an actual policy.

7 million people lost their homes in the last recession. Not one of them was one of the people who make the policies.

Some rich people gained billions of dollars speculating.

I live in America. They are rising too quickly for all of us.

 

[MarathonMike]

Personally I think the most important numbers are 4 and 6. If the 10 year note goes to 4%, and mortgage rates go to 6% then that could be the bubble popper. Below that and I think we'll be OK.

 

[caddo kid]

As long as it is slow, the economy should absorb it

Obviously oblivious to the fact that the increased costs of servicing the $21 TRILLION in debt owned by the feds will drive them towards default, no matter what the economy does.

I think we are heading in that direction regardless. They clearly have no intention of slowing they’re spending habits

The use of dollar denominated debt in the third world and China's 4X GDP total debt are more likely triggers. The US is the pick of an extremely ugly litter

and Trump is the face of that ugly litter of shitty hound dogs