Get ready for the next BRRRRR!!!
- 30y mortgage interest rate breaking a 40yo trend.
- MBB down while being used by big players as collateral.
- DXY breaking a 40yo trend (not in the chart) can cause bond defaults around the world.
- Fed has only started raising rates.
* If MBB keeps going down, might see some marge call and flash crashes in the market.
* If MORTGAGE30 keeps going up, will increase the mortgage default, having 2008 back at it. (DRSFRMACBS)
* If bond defaults start around the globe (Sri Lanka, Pakistan, Egypt, Kenia), DXY will keep going up, making the US exports dump (12% GDP)
+ To avoid foreign bond defaults, Fed can make currency swaps with other central banks, to avoid pumping the DXY.
+ To avoid margin calls and mortgage defaults, Fed can slow down the rate hikes.
+ To avoid the inflation hitting people's pocket, they might re-launch covid stimmies for "food and gas".
- MBB down while being used by big players as collateral.
- DXY breaking a 40yo trend (not in the chart) can cause bond defaults around the world.
- Fed has only started raising rates.
* If MBB keeps going down, might see some marge call and flash crashes in the market.
* If MORTGAGE30 keeps going up, will increase the mortgage default, having 2008 back at it. (DRSFRMACBS)
* If bond defaults start around the globe (Sri Lanka, Pakistan, Egypt, Kenia), DXY will keep going up, making the US exports dump (12% GDP)
+ To avoid foreign bond defaults, Fed can make currency swaps with other central banks, to avoid pumping the DXY.
+ To avoid margin calls and mortgage defaults, Fed can slow down the rate hikes.
+ To avoid the inflation hitting people's pocket, they might re-launch covid stimmies for "food and gas".