Financing Bidenomics! The Good, The Bad And The Ugly (Rising Bond Total Returns, Rising Refinancing Costs, Falling Mortgage Purchase Demand)

Confounded Interest ^ | 12/16/2023 | Anthony B. Sanders

[Kaiser8408a]

Like the spaghetti western “The Good, The Bad And The Ugly,” Bidenomics has had similar effects on financing. Some good, some bad and a lot of uglies.

The good! For investors like pension funds the own US Treasuries, inflation has led The Federal Reserve to raise interest rates. This is good for investors holding short-term debt. The Bianco Fixed Income Total Return Index is soaring!!

The Bad: Well, the flip-side of the same coin is that debt refinancing costs have soared.

The Ugly. There are many contenders for losers under Bidenomics and current Fed (garbled) policies. But I choose … mortgage demand collapse with rising home prices and rising mortgage rates. Mortgage rates are up 165% under Biden.

And mortgage demand (applications) have been crushed.

[Kaiser8408a]

Mostly bad with Bidenomics!

[Uncle Miltie]

Counfounded Understanding

[Leaning Right]

> This is good for investors holding short-term debt. <

Kinda. High quality short-term debt is now paying around 5.5%. At least that beats inflation.

I kid, of course. Real inflation is running at way more than 5.5%.

[Jim W N]

Financing Bidenomics! The Ugly, the Uglier, and the Really Ugliest.

here is no good to unconstitutional government spending and runaway inflation.