Web Search powered by Yahoo! SEARCH
Not only that but pension funds rely on a return on investments in bonds. Current rates will destroy these funds. Calpers, the largest private pension fund earned a 1% return last year. The fund managers had predicted a 7.5% return. Some real geniuses there!
Unfortunately rates will never be allowed to rise by the Fed or .gov. Why, because there is no real capital being reinvested. Business is being funded with debt. If these corporations are forced to role existing debt at higher rates they are toast. This is deflationary and the Bernanke will never let that happen.
Then there is the $16 trillion in national debt. If rates go back to 6% or 7% the country is toast. See Spain, Greece, Italy, etc. The Spaniards are crying due to 7%. This game will be played until it can't. When bond holders begin to lose confidence and demand higher yield the game will end. How much longer can the game continue? That is the $16 trillion (and rising) question!
Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.
Username * Don't have an account? Sign up for a new account
Password * Can't remember? Reset your password
Comments can be shared on
Add both options by connecting your profiles.
Feels Like: 72°
Feels Like: 76°
Feels Like: 73°
View popular webcams in our area.
Sign up to read an electronic replica of the Marco Eagle newspaper.
Get your local news anywhere you go from the Marco Eagle. Download app »
See photos from local anglers with their biggest catch of the day. Submit your photos.
Our radar shows current conditions and possible severe weather.