bra_man69
Literotica Guru
- Joined
- Aug 29, 2003
- Posts
- 7,410
I didn't say that. I have said the President's policies have prolonged the recession and damn well might drive us headlong into another. He is flat out ideologically opposed to fiscal policies that might rescue the economy from further slide.
Low ten year bond yields have more to do with the value of our currency and the amount of it the government is already holding. When the supply of anything is great against the demand the price falls.
Just look at pension plans, most with typical allocations are 60% equities and 40% bonds. Performance between equities and bonds just this month shows bonds down 8% stocks down 7%, that's roughly a 15% swing on 60% of your portfolio meaning the funded ratio of your protfolio is down 9%. So do you think those fund managers are going take a look at that ratio and buy more bonds? Damn straight, but what is the effect of more bond purchases? The effect is even lower bond yields in the future.
You see where the fed ben buying treasury bonds last few weeks.
if that interest rate spikes we are fucked.