Yesterday, the 10-year Treasury note hit its lowest interest rate in history. For the third day in a row.
I didn't hear that reported. Did you?
Treasury notes started trading in substantial amounts during World War I, almost 100 years ago. Until Wednesday of this week, the lowest interest rate in history on 10-year notes was 1.672 percent. That was in February 1946, 12 years before I was born. (That rate re-appeared, for a few brief moments, last September.)
On Tuesday, the rate for 10-year notes closed at 1.73 percent. On Wednesday, the rate dropped past the all-time low, and kept going, finishing at 1.62 percent. Thursday set a new all-time low, finishing at 1.58 percent. On Friday, the rate for 10-year notes finished at 1.47 percent.
That's a 15 percent drop. In three days.
The yield on 10-year Treasury notes actually plunged all the way down to 1.44 percent during Friday trading. That's the new all-time low. Until Monday, at least.
Here are some questions that come to mind:
Why is this happening?
Is this good news or bad news? (Hint to Obama Administration: you can take credit for it.)
Will the trend continue?
What does it mean for the middle class? For mortgages and car loans? For corporate profits? For fiscal policy?
Who gains and who loses?
Unfortunately, there are no answers to any of these questions today, because reaching a 100-year low in interest rates is not considered news.
Here are the headlines yesterday from the Associated Press:
Here are the headlines yesterday from ABC News:
I hate to be a scold. I really do. But important things are happening. Can someone in the media, or among our so-called leaders, please pay some attention? Please?
You can't lead people anywhere if your eyes are closed.
Courage,
Alan Grayson
Follow Alan Grayson on Twitter: www.twitter.com/alangrayson
Interest rates are plummeting, bond market is lowest in God knows how long
Europe's economy is about to implode
Jobs are decreasing
Banking interest rates are hovering around 4%
TRUST ME THE STOCK MARKET WILL CRASH it's just a matter of when NOT if. The miracle that is needed to avert this epic horror of biblical proportions is so profoundly rare and the GOP's cheerleading of economic failure to smite the Democrats will block any true efforts to right the fall. Because of political correctness and this being a Presidential campaign year Obama is under pressure to stave off the crash but he's only delaying a 2nd bubble burst.
Greed, corruption and lack of accountability in our government, financial markets has created a massive over valued bubble to project a fake healthy economy. Instead of letting the system tank and right itself politicians and the Fed just poured more air into the bubble now the bubble is bigger than it's ever been and its going to blow.
Republicans will blame Democrats and send the message Obama is the anti-Christ and the democrats will point their finger at the GOP for blocking needed tax measures and regulation. (shocking rights ?)
Others will blame Europe's liberal policies while some will just point to nationalism and push for a ONE world economy. That's right. ONE DOLLAR and a NEW WORLD ORDER.
The energy field has contributed over 10% of the employment numbers,,,,Keep beating on them Obamma.....and he has backed off. All we ask is honesty no matter the news. You couldnt run a business they way that they report numbers. The board would have your head.
Please come back soon.
Obama has grow more welfare recipients than babies which are real customers.
Brace yourself and watch the World Banks actions then the Fed. The Fed cannot raise rates much due to that debt. It will implode the economy. They are moving to unite the currenies of the USA Mexico and Canada....Must watching as we continue to borrow 43 cents for every dollar we spend. Once that Fed starts to raise rates the debt goes into warp drive. 43 cents grows to 58 for every dollar we spend, This pace exceeds Greece. They have walked oil down as the dollar temporarily shows strength,but gold is the key. Using oil to soften the markets adjustment. Its going to hurt all.
Europe is being landed into a bankruptcy. Why? Theres no money to do bailouts. The kicker, tho the dollar shows strength if the euro goes through bankruptcy procedures they will emerge faster and stronger versus the bailout. It will be shorter and less painful than a drawn out bailout that becomes a infection to growth that cant be pulled. That why bankruptcy procedures work they protect markets. The USA markets will still be debt ridden and interest rated to a boil.
China is now being granted to trade currency in the USA borders....Very Troubling Watch the World Bank ...btw; This president has ties to that.
The Fed cannot raise interest rates more than 2 pts this is why they will practice QE34567xyz..Thank you Greenspan,,, for the trouble was showing its ugly head as you played politics....Why you might say?
The newest entitlement called "The Debt" will implode thus concave the dollar into a hollow vortex. The dollar is in trouble as we know it. That deficit of borrowing 43 cents on the dollar spent is accelerating and will hit warp speed if the Fed moves one tick. Those are the facts. How much do you have to grow the economy to just manage the deficit? This 15 trillion a year economy will have to grow to what to get that 43 cents of borrowing down to a manageable state....try 30% . Banking on Euro hopes to fail is not the answer as the world bank tries to unite Canada Mexico and Usa currencies....yes brace yourself. Thats how bad it is. We need to make customers not welfare receiptiants. This is the real Presidential Race........The Debt.
What has Obama grown the most? Welfare reciepitants...........enough said..
.Like Ross Perot said 'You cant do business with people who dont have any money' Wish Frank and Dodd would of heard that as they forced the banks to over lend to those whom had no money.
The economy is at the fingertips of the Fed unlike anytime in the United States History. This is due to the fact we have exceed the economy and remain 43% behind on every dollar. That what 43cent of borrowing means. When do you catch up?
Common Sense prevails on the Healthcare Ruling by the Supreme Court in my opinion with a 6-3 against.....none of it is passed. With the love that administration has shown the court I was leaning that they might throw a shut out of 9-0 back at them. More likely 5-4.
Most US citizens are narcotized, whether it's Paris Hilton, Deadliest Catch, Flip that Home, Millionaire Matchmaker, CNBC, ESPN, Lumber Jack Olympics, some show on Gold mining, or Faux News.
In that process we are brainwashed to eat too much, drink too much, buy more stuff, and think we don't get enough sex.
There is just not enough time in the day to focus on the other stuff...like war in Afghanistan, stuff going on in Iraq (still), European debt crises, the Chinese and Indian markets succumbing to economic disease like North America and Europe, voter registration issues as the presidential election approaches, and my favorite...who's afraid of a little drone flying over your house?
Interest rates anyone?
G.Wya told y'all to go shoppin, and y'all took his advice and made your homes ATM machines, with the bonus of deducting the interest off those 2nd and 3rd mortgages!!!! to lower the taxes you'd have to pay.
As a result of that massive mortgage, the game has been rigged FOR the 24 billionaire's supporting Mitten's. Oh yes, repubs are screaming that Obama isn't a leader cause he didn't pull the unemployment down to 4%-6%!!!! Its as if no one heard the repubs say, on the 1st day of Barack being President, that THEIR whole JOB was going to be........making him a one term Pres.
Well, if that was their JOB, and they are beholden to the 24 billionaire's propping up Mittens, (their puppet who changes policies in one sentence), and they run the media, just what message were y'all listening/watching and waitin for?