[are] in negative interest rates. It's never existed before. And, that's a bubble. So, we're in the biggest bond bubble in history, and it's going to burst."
Paul, a former presidential candidate and vocal libertarian known for his economic and stock market bubble warnings, contends the Federal Reserve's policies are powerless in this environment. He doesn't believe this week's Fed meeting will provide any kind of relief and cutting rates will not be the answer.
"You can't predict exactly where the creation of credit goes," said Paul. "We have a ton of inflation with all that QE [quantitative easing]. And, every time you lower interest rates below market levels and create new credit, that's a bubble.". With bonds yielding negative rates now in focus, he suggests the danger is ballooning to unseen levels."You don't know this precise time. But you know it can happen," he said.
FuturesNow Our every year apocalypse from Ron Paul.
FuturesNow 24% chance to hit zero short term Fed rate by 2021.
FuturesNow So I would like a $100,000 loan with -5%APR over 20 years
FuturesNow 🤔🤔🤔🤔🤔warning
FuturesNow Yawn, Ron Paul. Shouldn’t he be busy hawking gold?
FuturesNow Ms. Landsman and the CNBC Twitter publisher need to have a chat with each other. “Bond yields are going negative” but “the bond bubble is going to burst”?
FuturesNow How is this guy an expert
FuturesNow 5/3 in a higher rate environment. It might not be much of a real return. But you’ll never suffer a “bubble” like loss relative to other risk assets. Period.
FuturesNow 4/3 or real estate or credit bubble. Returns will be small, muted and quite possibly slightly negative. But if rates somehow begin to lift globally, other than cash you’ll still like your investment grade fixed income fund. And in the long run, bond investors will make more money
FuturesNow 3/3 a recession. Now...I’m not suggesting the developed world does not have a debt problem as in too much debt and not enough growth. And lower rates have helped extend this mountain of debt and negative rates are no panacea for structural reform..but it’s nothing like an equity
FuturesNow 2/3 2% over the next 16 months the total return for an indexed bond investor would be approximately zero percent from 1/1/19 to 12/31/20 plus or minus. The last two recessions saw the S&P 500 cut in half. Down 55% and 50% respectively. IG bonds are an insurance policy against
FuturesNow 💵 =🧻 💶 = 🧻 💷 = 🧻 💴= 🧻 💳 = 🧻
FuturesNow Why are you giving that dope exposure? I mean he’s been calling everything a bubble for the past 50 years.... Sometimes you guys are so irresponsible....
FuturesNow Then what?
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