How Will the State Bond Defaults affect the 2020 Election?

[debbiedowner]

There is roughly a 0% chance of states defaulting in the next 24 months.

BUT I SAW IT ON THE INTERNET I TELL YOU

You too?

Are you telling me you can't believe everything you see on the internet?

No wonder my medical conditions are not getting any better, that damn DocMD.

 

[Mac1958]

There is roughly a 0% chance of states defaulting in the next 24 months.

BUT I SAW IT ON THE INTERNET I TELL YOU

You too? Are you telling me you can't believe everything you see on the internet?No wonder my medical conditions are not getting any better, that damn DocMD.

 

[task0778]

Dems will nationalize state debts when the time comes.

At some point when the Dems get back into the WH AND gain the majority in both chambers of Congress, they will find a way to nationalize state debts and they will not be shy about using the nuclear option in the Senate to do it. The good news is that the Repubs will challenge the constitutionality of that legislation and it'll take awhile to get to and through the SCOTUS, and that means at least one national election will probably take place and the Dems will be royally screwed by the voters. Who, trust me, will be outraged to the max. Whoever the Dem president is will be denied re-election when that election comes up too.

This is why the power of the far Left matters, how much leverage will they have with Dems in red states to vote for this debt nationalization? Somebody correct me if I'm wrong, but I'm under the impression that the far Left candidates had some successes in this past election but also some losses too and I'm not sure they'be gained any strength. It looks like we are headed for a showdown between the far Left, the far Right, and the rest of us in the middle somewhere. There's gonna be a lot at stake in 2020.

 

[mudwhistle]

There is roughly a 0% chance of states defaulting in the next 24 months.

Look over the real estate market trends in the above states .

Doesn't matter.

All states have no problems issuing bonds.

State restructurings may happen over the next decade or two as pension obligations skyrocket, but it's not going to happen in the next few years.

The problem is the Fed keeps raising interest rates to cause sell-offs in the market.
The more the Fed raises rates the more interest has to be paid on the debt.
The Democrat's solution is always raise taxes and cut benefits....except to illegals and refugees.

 

[Toro]

The problem is the Fed keeps raising interest rates to cause sell-offs in the market.

The Fed isn't raising rates to cause a market sell-off. That's a byproduct of raising rates and the unwinding of QE.

The Fed is raising rates because the US economy is strong. Interest rates rise when the economy is strong. You keep rates low when the economy is weak.

 

[Toro]

Dems will nationalize state debts when the time comes.

That may happen.

Or at least part of states' liabilities, particularly government workers' pension obligations.

 

[mudwhistle]

The problem is the Fed keeps raising interest rates to cause sell-offs in the market.

The Fed isn't raising rates to cause a market sell-off. That's a byproduct of raising rates and the unwinding of QE.

The Fed is raising rates because the US economy is strong. Interest rates rise when the economy is strong. You keep rates low when the economy is weak.

You're full of it.
The economy is just starting to take off, and when it looks like we're gonna have a good quarter, the Fed puts a damper on it by announcing another rate increase.

 

[Toro]

The problem is the Fed keeps raising interest rates to cause sell-offs in the market.

The Fed isn't raising rates to cause a market sell-off. That's a byproduct of raising rates and the unwinding of QE.

The Fed is raising rates because the US economy is strong. Interest rates rise when the economy is strong. You keep rates low when the economy is weak.

You're full of it.
The economy is just starting to take off, and when it looks like we're gonna have a good quarter, the Fed puts a damper on it by announcing another rate increase.

The economy has been strong for two years.

Isn't that what you Trump supporters have been saying?

And when the economy is strong, the Fed raises interest rates.

That's how this works.

 

[william the wie]

Higher interest rates increase roll over risks especially in high tax states and particularly in unlisted small businesses.

 

[mudwhistle]

The problem is the Fed keeps raising interest rates to cause sell-offs in the market.

The Fed isn't raising rates to cause a market sell-off. That's a byproduct of raising rates and the unwinding of QE.

The Fed is raising rates because the US economy is strong. Interest rates rise when the economy is strong. You keep rates low when the economy is weak.

You're full of it.
The economy is just starting to take off, and when it looks like we're gonna have a good quarter, the Fed puts a damper on it by announcing another rate increase.

The economy has been strong for two years.

Isn't that what you Trump supporters have been saying?

And when the economy is strong, the Fed raises interest rates.

That's how this works.

They started raising interest rates the second after he was sworn in.

 

[william the wie]

The problem is the Fed keeps raising interest rates to cause sell-offs in the market.

The Fed isn't raising rates to cause a market sell-off. That's a byproduct of raising rates and the unwinding of QE.

The Fed is raising rates because the US economy is strong. Interest rates rise when the economy is strong. You keep rates low when the economy is weak.

You're full of it.
The economy is just starting to take off, and when it looks like we're gonna have a good quarter, the Fed puts a damper on it by announcing another rate increase.

The economy has been strong for two years.

Isn't that what you Trump supporters have been saying?

And when the economy is strong, the Fed raises interest rates.

That's how this works.

They started raising interest rates the second after he was sworn in.

Going with Powell instead of sticking with Yellen was an unforced error by Trump. Yellen was the one who wanted a gradual increase. Powell's hallucinations about Carter style inflation is a major malfunction due to changing chairs being seen as a green light to avoid inflation at all costs. Employment and wages are increasing and appointing so 10-20 bp rate hikes are needed 25bp rate hikes are too high. Powell and his 25bp hikes is a major reason Trump took losses in the mid-terms. Powell needs to be terminated but not with extreme prejudice.

 

[Toro]

They started raising interest rates the second after he was sworn in.

They started raising interest rates in December 2015.

Federal Reserve Board - Open Market Operations

 

[jwoodie]

They started raising interest rates the second after he was sworn in.

They started raising interest rates in December 2015.

Federal Reserve Board - Open Market Operations

Are you hoping no one looks at your cite? Obama had one .25% increase between the 2008 and 2016 elections. Trump has had eight since his election. That is a 2.00% increase in only two years!

 

[william the wie]

They started raising interest rates the second after he was sworn in.

They started raising interest rates in December 2015.

Federal Reserve Board - Open Market Operations

Are you hoping no one looks at your cite? Obama had one .25% increase between the 2008 and 2016 elections. Trump has had eight since his election. That is a 2.00% increase in only two years!

Toro has very good reason to be worried. The rate hikes plus selling down the QE inventory is sucking money out of the capital markets at the same time SALT is destroying the tax base of high tax states. China is now at just about stall speed and Trump's war on theft of intellectual property as with the restrictions on the use Huawei in the US could end up crashing world markets even though the US economy is doing alright.

 

[danielpalos]

They started raising interest rates the second after he was sworn in.

They started raising interest rates in December 2015.

Federal Reserve Board - Open Market Operations

Are you hoping no one looks at your cite? Obama had one .25% increase between the 2008 and 2016 elections. Trump has had eight since his election. That is a 2.00% increase in only two years!

Obama was not practicing tax cut economics in an already upward trending economy.