Posted on 10/12/2022 6:38:31 PM PDT by Beave Meister
The global debt market is orders of magnitude larger than the stock market, and debt instruments across the globe have nearly reached the breaking point due to the Fed’s steady increase in interest rates this year (combined with seemingly endless money printing and other disastrous fiscal policies).
Because bond values have an inverse relationship with interest rates, as interest rates go up, the value of bonds and other debt instruments already issued goes down. With each Fed rate increase, bond values are cratering, leaving debt investors holding substantial losses and leading to a collapse in the number of potential buyers even willing to take possession of these bonds.
As investor Larry McDonald says in this Marketwatch article, “things are breaking.” From the article:
(Excerpt) Read more at freedomfirstnetwork.com ...
The politicians and government will get theirs.
I’m not worried. My Sears (S) stock will never lose value!
.
It has already begun as gradual.
The government will just print more money. Inflation will reduce the value. Very simple, but effective.
Yeah, but we can sleep at night without fear of mean tweets
Maybe going down like a dimmer switch?
Are you specifically talking pensions, or are yku using that as a general umbrella term for all of the various retirement types of plans?
Because not that many people actually have true pension plans anymore. Way, way less than the percentages of people that used to have them.
As in money to feather nests or just desserts?
To paraphrase a line from an Hemingway novel, this collapse will happen slowly, then all at once.
I would be calm about this if if Trump were in charge. But he is not. The United States is now being led by a potato. And the rest of the West is being led by irrational children.
Look out below!
Even at 15% inflation, it takes about five years to reduce the buying power to half of what it was.
Exactly correct.
The Ukrainian war would never have happened if Trump had not been cheated out of a second term.
On the other hand, the irrationality and hatred of the Democrat woke machine is exposed for all to see, and President Trump has learned a great deal which was hidden before.
As Van Helsing said in “Dracula”, “We must first go through the bitter waters to get to the sweet.”
If the whole system collapses, I reckon I may just die, for any number of reasons. If it means a freer tomorrow, I’m good with it.
How’s your TWTR and BBBY doing?
I’m going to buy soon, it’s up up and away! The sky’s the limit!
(I actually pinched this from two different people who were invested in real estate in 2006 and 2021. They said this time is different and there is nothing but up up up up from here to infinity. I asked about median household income versus house prices and they said the Fed had it covered.)
At our current rate, which if calculated as in 1990 would be 17%, then less than 4 years.
It is the tax that keeps on taxing....
The Congress has eroded many of the protections which were put in place about 40 years ago...
I have a traditional pension, from General Dynamics, from GTE when GD bought the GTE division I worked in.
My pension should be safe, it is around 85% funded.......as long as GD continues to get enough defense contracts.
‘“My message to the funds involved and all the firms is you’ve got three days left now,” Bailey just said on Tuesday.’
that’s signal.
The good news is soon we’ll be able to buy AAA bonds that pay 8% and CDs that pay 10%.
Buy if you are holding assets that in any way depend upon the value of bonds already issued, you’re screwed and without recourse.
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