A general slowdown will impact everyone, even the online sellers. Amazon had the most MOMO hot air, so it will fall the most.
This could accelerate the selling of USTs coming out of China, Japan, Europe etc.
CNBC said that the prospects of a deal are poor. Lew said the money will run out in early Nov., not the short term extension in early Dec. that Boehner worked ot. CNBC said the impasse over planned parenthood funding will be taken up again soon, but by then the debt limit will have been reached. The new probable hardline speaker, McCarthy, oppses funding for PP. So if they try to attach this to the budget limit hike, the Pres, will almost certainly veto it & we have a shutdown, and (hopefully not) a default.
ZIRP, zero int. rate policy; NIRP, negative int. rate policy.
1. Less interest income to savers = less spending by savers
2. Puts banks & insurance companies at risk, since they don't earn enough on the rate spread to continue lending & policy activities.
3. Savers & banks & insurance companies are forced to invest in riskier assets, that may plunge. Creates bubbles.
1 Year Bills -- 1.5-2.0%
2 year note -- 2.5-3.0%
5 year note -- 3.5-4.0%%
10 year note --4.0-4.5%
20 year bond -- 4.5-5.0%
30 year bond --5.0-5.5%
Supplies are that tight.
Get out of treasuries. No deal on planned parententhood, etc. Could be a bond crash.
Why not just hoard the cash at home in a safe place? Hide it in a fire proof box where no burgler could find it. Anyone accepting negative rates is an idiot. Boycott the bill auctions. I would boycott the note and bond auctions as well--the rates are just an insult.
I see silver as a precious metal with an industrial use "option". Some see the industrial use option as a liability because of sluggish econ. growth. I see it as a positive. two ways for silver to rise--as a precious metal store of value, and as a strategic industrial metal.
Indians will own everything in a few decades & employ most Englishmen & Americans. Shrewder that even the Chinese, in my humble opinion.
Seasonal factors are usually bullish. For example, the Indians vacuum it up during wedding season.
Must dislike silver to do that. My revenge will be seeing silver cross $50 and not look back.