Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (50168)	5/14/2013 10:16:23 AM
From: Kirk ©	Read Replies (1) \| Respond to of 219267

One reason rates went to 15% in the past was a lack of money. if rates went to 15% that is more than the entire tax receipts to service debt I heard this AM there is something like $400B (don't quote me) in cash sloshing around in the US. That seemed far too low, maybe it was in public company balance sheets... so I did a search and the amount is $2.583 trillion! www.ici.org/research/stats/mmf/mm_05_09_13 You don't think most of that would jump to buy 4% or 5%, 10yr USTs if given the opportunity? I would pay the early withdrawal penalty today to liquidate my CDs to get 5% for 10 years.... That would FORCE the banks to raise rates to keep my money.... higher rates would SLAM the breaks on the housing and economic recovery... and crush any inflation. Bottom line is we should have moderate inflation for a long time (mostly due to low wages, robots replacing humans at fast food, people on Skype in call centers taking orders for McDonalds and Burger Kings so they can use less workers and apply them where needed, when needed...) and higher rates just above inflation should suck up the capital quickly.