Interest Rates

[wheatking16]

Remember this 5-year Canadian government bond yield chart from a few months ago?

Interest rates likely going higher.

There is a generation of us who have no idea what "normal" interest rates are.

[13stripe]

Root of alot of the problems in Canada is keeping interest rates low to try and boost the economy to make up for poor decisions by government, along with massive immigration.

[ColevilleH2S]

Immigration, I suspect it capped inflation by suppressing wage growth.

[13stripe]

Maybe for companies but for the Canadian economy adding such a large percentage added scarcity to all other services and free money goosed inflation of goods to everyone.

[shtferbrains]

Can't print and borrow our way to Prosperity.
The population has to be productive.
Giving people other people's money always ends poorly?

[errolanderson]

U.S. government borrowing rates are now the highest since June, 2007. And by the way, in 2007, the U.S. was financing government debt around $14 trillion. Today, the U.S. debt just crossed $40 trillion.

Now panic this weekend to stop the bleed in the Yen. Both the
Bank of Japan and the U.S. Federal Reserve are in panic mode to save the bond market. 30-year bond yields are breaking Great Recession highs. This suggests the North American stock markets are at heightened risk.

Save the bond market or save the stock market. Pick yer poison . . . .”

The USD now appears heavily overbought and alternate currencies oversold including the loonie (IMO)

errolanderson.substack.com

[wrongway]

What I find disturbing is just how big the derivative market on stocks and bonds has become...orders of magnitude bigger. All this crap becomes worthless with just a small drop in the overlying asset. once the first domino falls it will be almost impossible to stop. Korea with the highest gdp growth in the world is finding this out right now. The world is blindingly moving on ignoring all this though and people are getting rich, at least on paper.

cash is king, till hyperinflation hits... i guess.

[biglentil]

What I find disturbing is just how big the derivative market on stocks and bonds has become...orders of magnitude bigger. All this crap becomes worthless with just a small drop in the overlying asset. once the first domino falls it will be almost impossible to stop. Korea with the highest gdp growth in the world is finding this out right now. The world is blindingly moving on ignoring all this though and people are getting rich, at least on paper.

cash is king, till hyperinflation hits... i guess.

Whatever if you drop it and it hurts your big tow is king. I would recommend reading the "The Great Taking" if you think your savings and investments are safe.

[Old Cowzilla]

Don't forget the large part of the population that already pay high int. rates credit card ,payday loans and refinanced car and truck loans just to keep up with the Jones . The bank of Canada rates are out of reach for Joe 6 pack already. The interest small business pay plus paper pushing charges are already out of wack. Produce get 15 days credit if lucky plus anybody pays with cheque that fund is frozen for 5 bank days might as well say a week.