Subscribe to RSSThis New Trend Will Crush the Housing Market
I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody. — James Carville, Professional Spinmeister The ride of the vigilantes Whenever I hear about the threat of bond vigilantes, I think of Wagner’s “Ride of the Valkyries” and that scene from Apocalypse Now when the Hueys fly in low and shoot up some village in Laos… I don’t know why I think that, but it seems appropriate. For those who don’t know, a bond vigilante is an investor who believes that inflation is a risk and demands higher yields to compensate for this risk. It’s a very logical stance. However, back in the halcyon days of the Bill Clinton presidency, the spinmeisters — such as Carville, quoted above — invented a name that would cast blame on these investors. (It is the first reaction of most politicians who have no working knowledge of finance to shout names and point fingers.) It couldn’t be the unsustainable deficits and budgetary irresponsibility that drive up yields… It’s the “bond vigilantes.” This was all a reaction to the fact that from October 1993 to November 1994, 10-year yields climbed from 5.2% to just over 8.0%, fueled by concerns about federal spending. Advertisement The Metals Secret that JPMorgan, Goldman Sachs, and Barclays Don’t Want You to Know… For nearly a decade now… One silver stock has outperformed the Dow Jones by a factor of 122. It’s beaten the NASDAQ by 11,500%. And it’s crushed the S&P 500 at a rate of 180 to 1! In fact this little-known silver …
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This New Trend Will Crush the Housing Market
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