Hedge Funds started off 2021 by dumping $49B of treasuries onto the market.
With great fear in the market for inflation people do not want to tie of their money for 10 years for a measly interest rate. If nobody comes and buys government debt then central banks would have to raise the interest rate to attract bond buyers. If they increase interest rates then people would move away from corporate bonds to government bonds for better yield.
Many Corporations are surviving on cheap debt alone and would need to find a solution to addressing increasing interest rates or else risk rolling over their debt to higher rates than they can afford. They will need to find a solution. They could downsize, lay off employees or restructure. Or they can sell all the stock they have been buying up over the years while the stock market is at all time highs then pay off debt in anticipation for the increase in rate. This would crash the stock market. This is why the central bankers and hedge funds are fearful of. This is why there is a boot on your neck.
Rising interest rates will be the end of the world. Not only would the stock market crash but so would housing. People would be out of work and not able to sell any property they do own since very few would be able to afford to buy. There are many people with their life savings tied up in their homes. Mortgage backed securities would default and there would be a greater depression than any you've seen on TV. And since the interest rates cant go any lower to be truly effective, the fed cant use them as an effective tool to provide liquidity to the market that tightens up its purse.
Just something to chew on while the sky falls. Wear your mask it will all be okay.
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NDP would have a tough time campaigning with the pending family issues Jug's bro-in-law is kicking up.
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Cons took a huge leap to the left, well pass left of center, I've seen Mad Max holding recent interviews. Somethings up.
If an election were held today how do you think it would play out?
