Saw this video clip ( http://www.cnbc.com/id/15840232?video=1334910740&play=1 ) both guests seem to think that, eventually, we are going to go to 6% Treasuries (I assume they are talking 10 years?)
I believe that implies 30 year fixed mortgages at or above 7.5%, but what else does it imply for stock market, credit markets, and other down the road some time?
Increased borrowing costs for everyone can't be good, but since almost all of the new money that has flowed into the financial markets this year has gone into the credit markets, wouldn't rising rates also driving a reallocation to stock down the road?
And would some of that rise in rates be due to inflation expectations, or just that our creditors see burgeoning debt and eventually need more return for our less credit worthy status in world?
Also, thinking about other commentary I've seen, significant rise in rates seems at least a year off (?)
I believe that implies 30 year fixed mortgages at or above 7.5%, but what else does it imply for stock market, credit markets, and other down the road some time?
Increased borrowing costs for everyone can't be good, but since almost all of the new money that has flowed into the financial markets this year has gone into the credit markets, wouldn't rising rates also driving a reallocation to stock down the road?
And would some of that rise in rates be due to inflation expectations, or just that our creditors see burgeoning debt and eventually need more return for our less credit worthy status in world?
Also, thinking about other commentary I've seen, significant rise in rates seems at least a year off (?)
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