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Weird trend on the 30 year interest rate...
HoustonHusky
Member Posts: 5,966
in Tug Tavern
A friend was showing it to me at work today...I'm too lazy to pull up the Reuters Chart of it but you can see it in this:
Basically, if you zoom in from 1987 (the crash then) to now on the 30-year rate it has followed an amazingly tight straight channel downward...and its getting to the point where that channel can't go down much further. You can add some comments about it being the point at which the Fed started trying to fix everything, but its kinda a frightening chart whatever your views on the Fed are...and moreso when you realize it has to break out of that channel sometime soon.
Basically, if you zoom in from 1987 (the crash then) to now on the 30-year rate it has followed an amazingly tight straight channel downward...and its getting to the point where that channel can't go down much further. You can add some comments about it being the point at which the Fed started trying to fix everything, but its kinda a frightening chart whatever your views on the Fed are...and moreso when you realize it has to break out of that channel sometime soon.
Comments
And it wasn't on zerohedge or any other site that I'm aware of...
Auce!
Fuckers.
Weakening economy, falling revenues, rising loan losses, falling collateral value of remaining loans on books, rising assets owned... Those new asset pools fall in value, lending standards forced to tighten, further pressure, eventually... Poof, negative equity, deteriorating loan portfolio, margin squeeze, bank failure.
Lending grinds to a halt.... Just like last time... Before the VooDoo rescue that 'solved' everything.