Ghost Of 1929 Carsh Reappears...

Yeah it will sail over 3.0% in a heartbeat, maybe all the way to 3.5% instantly...the question then becomes, how many foreign sellers will bail on Treasuries, and how many derivative contracts have repriced sine Q3 2013 when the rates began to go up?

70+% of the U.S. Debt is short term, so probably 25% of that has already re-priced, but many derivative contracts are based on the 10yr Benchmark Treasury Yield...how many of those are still tied in at the 1.5% level? How many of those will get wiped out or margin called when they do taper?

There is a reason that the Fed has allowed interest rates to creep up on the 10Yr, and it's so it won't shock the system as bad...

They seem to be trying to control it, but it could get out of control very quickly.

Last Edited by Saddletramp on 12/08/2013 11:13 AM

Yellin won't taper. She's here to undo Bernankes unsustainable policy in one swift blow. Announce the end of purchasing.

They're probably hoping the bond market explosion will be mitigated by the influx of foreign investment in the dollar once interest rates move.

If even BERNANKE thought that would work, he wouldn't be skipping town and distancing himself from it. Therefore, he's washing his hands of the whole thing. That is probably going to get ugly.

These bad times couldn't have come at a worse time.

Hopefully all the undesirables go back to where they came from when the money drys up.

If interest rates go up and you have a crap load of cash sitting in a savings account...wouldn't you win?

Assuming you have a mortgage rate set at say 3 percent for 5 or so years?