Earlie,
A trillion dollars! It is that big!!? Wow!
Now what is the size of the US economy and GDP again? 30 and 8 trillion is what I have heard.
Hmm, 1 trillion doesn't sound that impressive any more.
What occurs when all home loans get called? The economy tumbles, right? And the banks never recover their money. Why would the US bond holders want to destabilize the US economic system if they have no worries about their interest payments, and inflation is mild? And, as an aside, the loan may just be paid off in near future as well.
As for the annual trade deficit, what percentage, again, is it compared to the GDP? The annual budget? The interest payments that the US has to pay? The size of the world currency market? Keep things in perspective, will you, please? 1/2 billion is simply nothing in perspective.
And what happened in 1998 when the Feds cut rates? Nothing, is the right answer. Were you following markets in 1998?
I think you need to go to school to learn about currency and bond markets a little bit.
-BGR. |
