While today's big jump in 10 year rates did not result in a higher high yet, it did gap above resistance AND then broke through the top rail all ion one trading day. That is some nice gusto right there. If this powers to a new high then Yellen will be under immense pressure to make a public show of raising rates before everyone figures out that she has in fact lost control and even the appearance of control of the bond market. In a con game, all you have is confidence! Without it you are irrelevant and then the herd, who has been following you, begins to break of, change direction, just like the flock of birds depicted here. Once it starts it picks up exponential speed and then there is no stopping it.
Watch and see. All this time Yellen has been holding the fed funds rate low because she knows how many highly leveraged things will crash when rates begin to rise. The jobs picture is only looking better because they changed how they measured unemployment. The middle class is still in the toilet. Corporations are losing pricing power. The Greek "solution" is just another trade of unkeepable promises made to the Euroscammers in exchange for 50 billion of fake money printed from thin air; it's just another lie for a lie deal. Sooner or later, the savers (AKA bondholders) will want to get paid. They will tire of the liberal games and will want higher interest rates. And so they will get them because they actually control rates, not Yellen.
No comments:
Post a Comment