Loading ...
Sorry, an error occurred while loading the content.
 

Bond Bubble Expectations

Expand Messages
  • BATR@frontiernet.net
    Bonds are loans that have the expectation of payback with interest. Government bonds are viewed as the safest financial instrument since the primary fiscal
    Message 1 of 1 , Feb 13, 2013

      Bonds are loans that have the expectation of payback with interest. Government bonds are viewed as the safest financial instrument since the primary fiscal obligation of the state is to honor the terms of their own notes. However, in the fevered climate of currency wars among central banksters, the security factor of capital repayment is rapidly coming into question. As interest rates rise, the economic value of the bond diminishes. This inverted normal relationship is the essential dynamic of lending money with the purchase of Treasury Bonds. So what is all the talk about a bond bubble and likelihood that it will destroy your underwriting capital?

      Read the entire article on the Negotium archive page

      Discuss or comment about this essay on the BATR Forum

    Your message has been successfully submitted and would be delivered to recipients shortly.