Showing posts with label Bond Shock. Show all posts
Showing posts with label Bond Shock. Show all posts

Saturday, June 18, 2016

This Is What The Coming "Bond Shock" Will Look Like

The pertinent message is if bond yields rise 1%, the debt load in the US alone increases $2.4 trillion.  Globally, bond losses would be $8 trillion.

So despite raising rates being the right thing to prevent a bond shock and global market bubbles from melting down, the Fed and other central banks cannot afford to "normalize" yields back to 5-6%.

The Fed is trapped, and it's merely a waiting game for some black swan(2) to roil all markets.

http://www.zerohedge.com/news/2016-06-18/what-coming-bond-shock-will-look