Thursday , 22 July 2021

Debt & Deficits

Markets Need A 30% Stock Drop Or 50% Higher U.S. Yields. Or Not.

The S&P 500 is near a record high, and global bonds have rallied for 5 straight months. The benchmark 10-year Treasury yield, at 2.20%, is close to its 2017 low. One of those investor groups has to lose. The US Treasury will be under-financed by as much as $4.5 trillion over the next 5 years, and will have to issue more debt. To find enough demand, interest rates would have to climb 120 basis points from current levels, or equity prices would have to plunge 30%.

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Stockman: “After March 15th Everything Will Grind to a Halt”

People are missing the significance of March 15, 2017. That’s the day the debt ceiling holiday that Obama and Boehner put together expires. By summer, the government will be out of cash, and there will be the mother of all debt-ceiling crises. Everything will grind to a halt; there may be a government shutdown.

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Bubble Markets Will Continue Until?

The continuing support for these bubble markets is shocking to a thinking person, but it reveals that MOST leaders/administrators/traders/investors do not think. What is happening today could be reported as dire/ominous to a person of discernment and understanding…but to financial administrators and political leaders who need pumped-up markets to prevent chaos this mindset is unlikely to change.

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