1) what killed the NASDAQ bubble in 1999? High interest rates 2) what killed the housing bubble in 2007? Interest rates of 7.5 % 3) what killed the LBO market in 1990? High interest rates 4) what killed the gold and silver ( and oil) boom in the 70's? Interest rates of 20% Now ....do you see Bernacke raising interest rates? Better learn some basic economics 101!
interest went to 11% and that is what killed the dot.com bubble....but I dont expect people that watch Jerry Springer to understand that!
nope....interest rates rose from 1989 up until 1991 I believe and more importantly there was a yield inversion....but I guess you wouldn't understand that as it gets in the way of watching star search!
Yield inversions, (where the rates on t-Bills are higher then longer term paper), are fairly common prior to and in the early stages of recessions: Einstein. FYI: we had a recession in late 1991 early 1992 that cost HW Bush #41 the election in 11/1992, (as well as Perot). BTW: bond yields decline n' bond prices rally durin' recessions: dumber. The big bear market in bonds was in 1994: fool.
the bear market started in 1989.....and the yeild inversion also happened in late 89 I believe...and yes 9 out of 10 times a yield inversion signals the beginning of a recession! so whos the fool ?
bond prices usually rally at the end of a recession.....never during so you are incorrect. And that bond rally signals the end of the recession and usually also leads to a new bull in stocks!
Thirty year debt yields: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=tyx&insttype=&freq=2&show=&time=20 Twenty year debt yields: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=tnx&insttype=&freq=2&show=&time=20 The above two charts are the yeilds of 30 and 20 year US Treaturies. Ya have ta think upside down, (that is how you think anyhoooo: BOZO), ta ponder the price action. BTW: jus in case ya wanna claim these two charts are meaningless, 20 and 30 year bond prices are much more volitile then the price of shorter term notes n' bills (as the longer dated the NON CALLABLE paper; the more volitile the price action to market interets rates). OH another thing: the US treasury market is the largest debt market on the planet we live on... we don't need ta ponder the rates on BOZO's credit cards n' such.... Notice how there was a huge bear market in bonds in 1994 (jus' as I said) and bond prices generally rallied from the market lows in 1994 to the highs in the massive recession in 2008. THAT BLOWS WHAT YOU SAID ABOUT RECESSIONS eh: BOZO? Toooooo bad these charts don't go back ta 1989, when there was higher bond prices and thus lower yields in the late 1980's (as I also said)... The all time low, (PRICE) on the thirty year US Treasury was the summer of 1981 when the "coupon" on the thirty year bond was 16 & 7/8... Bond PRICES rallied from that point onward into the nasty recession of 1982 as yields declined all the way to highs of late 2008.... another recession... (that BOZO' s claims about interest rates n' recessions clearly don't show)!!! SOOOOO why don't ya tell me how much ya know about yields n' debt markets now that I've schooled ya; eh: ****** ***MOD EDIT - personal attacks are not allowed*** Me overpriced $.02, JR
boy tipical ignorant american LOL! short term interest rates are more volitile as they can easily be controlled by the fed...that is a given......so what? but what you say of the US bond market being the largest in the world? And you are proud of that? That the US is the most indebt nation on earth? Gold and siver are going up for a reason...and no its not because of the greedy speculators....perhaps instead of trying to be a wannabee economist you should go back to watching the beverly hillbilies!
A few interesting factoids: We all know that the gold/ silver ratio has been in free-fall since last August. While our model successfully predicted this event, we are hard-pressed to gauge where this ratio might finally stabilize. Some assume that we are already at the new status-quo; around 30:1. Many have suggested that it will stabilize at around the historical 15:1 ratio. Some have even suggested that it will *exceed* the price per ounce of gold. It raises an intriguing question: What is the proper basis for predicting this ratio? Do we go by demand? Do we go buy supply? Or do we evaluate it by other criteria, such as the Keynesian beauty contest model? I don't have any firm argument for this, but I do have some intriguing numbers for others who are pondering this and wondering where silver will revert from an investment to a hedge. 20th century average: 30/1 Historical fixed ratio: 15/1 Government holdings: 1/17 (more gold than silver) Annual mine production: 9/1 economic ratio in the ground: 6/1 Reclaimable non-bullion stocks aboveground: 5/1 Investment dollar demand: 1/1 Coins and bullion in existence: 1/3 (more gold than silver) As I said, I cannot tell anybody which of these ratios is going to dominate, but the fundamentals seem to strongly suggest that silver isn't done correcting.
The last time commods peaked and fear of the collapse of the Western world was a big deal.... investors chose ta hedge their bets with gold... not silver... They are doin' the same thing now IMHO.... (Even though the Hunts tried ta corner silver the last time around.....) Gold is a precious metal.... siliver is a semi precious industrial metal... The total gold in the world at this time is a cube less then 70' x 70' x 70'... Ya can't eat the chit..... butt: it sure is shinny.... duh yup.... burp.
actually everytime there is a boom in gold and silver it is common for silver to go up higher as a percentage....and it also falls harder than gold....silver is just more volatile than gold thats all. It will go up twice as fast as gold.....but then it will also fall twice as hard....just as it did in 1980 and also in the meltdown of 2008.......gold dropped like everything else but only about 25%....meanwhile silver was down some 60% if not more....so be carefull in owning silver...this is why I am monitoring the 10 year bond daily.....if I see any significant spike I will seriously consider selling alot of silver!
everytime I hear this foolish arguement I have to laugh.....you can't eat paper dollars either.....but its money...so is gold.....both are internationlly recognized as money!
I remember 1996 when the new $100 bills came out. Thought about saving one but realized it'll only deflate over time. Today that $100 would buy you 2 oz. of silver. Instead, back in 1996 I spent $100 on silver and today have over $300 worth of silver.
In 1996 silver was still around 6 dollars I think....I know because I bought a 10 ounce bar and it was around 80 dollars I think....there is a small bar charge on smaller sizes as the refiner needs to make money too. So if you have a 10 oz bar it should actually be worth around 500 dollars now!
I bought and sold and traded silver so many time through the years that it's all a gray area to me. But ultimately it's something I can (and do) pull cash from.
if you are talking about the FOREX then that is too risky for my liking.....even though I know that long term silver should hit 100 dollars, that is no guarantee that short term it cant drop by 10 or 15 dollars rather quickly!
You have no clue what you are talking about. At all. You should cease posting unless you are able to make a counter point that consists of more than "Because I said so".
