Sunday, August 23, 2015

Sounding the Alarm on the Rising Interest Rate Environment

6 comments:

Stagflationary Mark said...

The 30-year treasury is 2.69%! I'm sounding the alarm!!

Evacuate the building once you've finished your long hot bath, you've finished drinking your warm hot cocoa, and you've had 30 years of relaxing sleep!!

Stay in the building at your own risk! This place is
a FIRE economy!!

Rob Dawg said...

Can TIPS go negative?

Stagflationary Mark said...

Rob Dawg,

They can and have.

5 Year TIPS

dd said...

Waiting to find out which hedge funds went belly up and which banks are on the hook. Wonder if there are derivatives on hedge fund failure; and if Goldman is the winner but the problem is the loser can't pay up (QE here we come!). Hedge fund failures are no doubt "contained" and the Fed will respond accordingly with negative interest rates.
It's 1987 1997 and 2007 all over again. Reliving the past over and over is awesome! Where are Merton and Scholes when you need them? Getting another Nobel Prize or maybe having dinner with Larry Fink! Junk bunds and hedge funds..what could go wrong?

dd said...

Ohh, forgot about ETFs another Larry Fink nag. BlackRock's triple leveraged ETFs what could go wrong? BlackRock the next AIG? (Actually BlackRock manages the old AIG portfolio that was "purchased" at par courtesy of the taxpayer.) Now if BlackRock blew up that would be something to behold as it manifests all the "innovations" of the last 30 years aka tax advantaged super leverage with minimal regulatory oversight.

Stagflationary Mark said...

dd,

Reliving the past over and over is awesome!

I sure hope we don't someday relive WW I, WW II, and call it WW III. That would be a major bummer. I'm sure not optimistic over the ultra long-term on that. I'm just hoping I die if old age long before it happens.