tag:blogger.com,1999:blog-8515247115132134144.post7514889073967926373..comments2024-02-17T12:34:01.400-08:00Comments on Illusion of Prosperity: The Rising Interest Rate EnvironmentStagflationary Markhttp://www.blogger.com/profile/04568993350246477976noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-8515247115132134144.post-27763966426343781462013-11-17T17:48:58.107-08:002013-11-17T17:48:58.107-08:00Fritz_O,
Yes! It can't get much worth in theo...Fritz_O,<br /><br />Yes! It can't get much worth in theory! Hahaha! Sigh.<br /><br />As seen on the net and on net, our net worth may not net much if interest rates stay trapped in the ZIRP net much longer.<br /><br />And when it comes to employment, the net result of no network could mean even more people relying on safety nets, although many may slip through the nets due to net budget cuts. At the very least, they'll net less.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-78149567465349953472013-11-17T17:24:21.438-08:002013-11-17T17:24:21.438-08:00For what it is worth, it can get much worse in the...<i>For what it is worth, it can get much worse in theory.</i><br /><br />Or, to put it another way, for what it is worse, it <i>can't</i> get much worth in theory.Fritz_Onoreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-56144579311181219512013-11-17T05:15:55.626-08:002013-11-17T05:15:55.626-08:00dearieme,
My '96 Camry is still 2 years behin...dearieme,<br /><br />My '96 Camry is still 2 years behind you in the oldest car category! How am I ever going to catch up? ;)Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-11747258733972267532013-11-17T04:19:56.632-08:002013-11-17T04:19:56.632-08:00SMark,
I see that on that old thread I boasted th...SMark,<br /><br />I see that on that old thread I boasted that our 1970s car lasted 15 years before we sold it. Our current one is a '94 model that we bought in Jan '96. Fingers crossed for its safety inspection next summer.deariemenoreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-18779628121552508792013-11-16T17:19:16.747-08:002013-11-16T17:19:16.747-08:00dearieme,
My morning paper tells me that there...dearieme,<br /><br /><i>My morning paper tells me that there's one paying a positive real yield, a mighty 0.1% p.a., that might suit.</i><br /><br />For what it is worth, it can get much worse in theory. Sigh.<br /><br /><a href="http://illusionofprosperity.blogspot.com/2011/01/mundell-tobin-effect-epiphany.html" rel="nofollow">Mundell-Tobin Effect Epiphany!</a><br /><br /><i>1970s<br /><br />UK RPI: ~13.7%<br />UK Short-Term Rate: Ordinary Funds, Consistent Series: ~9.5%<br />UK Real Interest Rate: ~-4.2%</i><br /><br />UK savers took serious damage in the 1970s.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-8949136893185919202013-11-16T17:14:28.139-08:002013-11-16T17:14:28.139-08:00Mr Slippery,
...unless the world loses confidence...Mr Slippery,<br /><br /><i>...unless the world loses confidence in the US government/Fed.</i><br /><br />On an absolute basis, we'd be nuts to have much confidence in the US government/Fed.<br /><br />On a relative basis, we're doing fantastic though!<br /><br /><a href="http://www.cnn.com/2013/10/23/opinion/china-corrution-lijia-zhang/" rel="nofollow">Author: In China, 'everyone is guilty of corruption'</a><br /><br /><i>Chinese public opinion surveys identify corruption as the most hated social problem, yet everyone is also guilty of it.</i>Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-8949475173842005882013-11-16T17:07:04.753-08:002013-11-16T17:07:04.753-08:00mab,
I'm worried that the bond vigilantes hav...mab,<br /><br />I'm worried that the bond vigilantes have been replaced by voyeurists out on bonds. We should keep them locked up, much like short-term interest rates.<br /><br />We cannot just confine them to ivory towers! The thought of all those voyeurists with telescopes is just too creepy!<br /><br /><a href="http://articles.baltimoresun.com/2013-11-15/news/bs-md-bail-eliminate-20131115_1_bail-bondsmen-task-force-bail-hearings" rel="nofollow">Panel would scrap bail money system</a><br /><br />It's obfuscated headlines like that that make people wonder about our money system and what role bonds have within them. Do we scrap them? Do we bail them out? Who can really say for sure? It's hard to <a href="http://en.wikipedia.org/wiki/Recognizance" rel="nofollow">recognizance</a> the difference! ;)Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-6563336565881907212013-11-16T07:19:52.885-08:002013-11-16T07:19:52.885-08:00I'm considering our equivalent to long TIPS, l...I'm considering our equivalent to long TIPS, long Index-Linked Gilts. My morning paper tells me that there's one paying a positive real yield, a mighty 0.1% p.a., that might suit. Still, we could hold it in a tax-shelter.<br /><br />Hmmmmm.<br /><br />By the way, mab, this is for you.<br />http://www.bondvigilantes.comdeariemenoreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-51414224717436583482013-11-16T07:04:50.094-08:002013-11-16T07:04:50.094-08:00You know we are long way from rising short term ra...You know we are long way from rising short term rates when the Fed is afraid to even slow down the enormous QE purchases.<br /><br />The Fed is monetizing more than the "official" annual budget deficit. Hard to believe there are $45 billion/month in new mortgages to buy.<br /><br />The Fed is fully in control of, and sitting on the entire curve. That means, interest rates aren't going to move much...unless the world loses confidence in the US government/Fed. Then, we become Argentina and get a couple of years of 40% inflation and 25% interest rates.Mr Slipperynoreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-14256551547652540142013-11-16T05:00:17.798-08:002013-11-16T05:00:17.798-08:00I'm worried about the bond vigilantes. Very w...I'm worried about the bond vigilantes. Very worried. Jeremy Siegel must be worried too. <br /><br />They haven't been seen in years, and in the case of Japan, they haven't been seen in nearly two decades. <br /><br />It's just not like them. Something must have happened. <br /><br /><br /><br /> mabnoreply@blogger.com