The
unelected central planners at the Federal Reserve have decided that the
time has come to slightly taper the amount of quantitative easing that
it has been doing. On Wednesday, the Fed announced that monthly
purchases of U.S. Treasury bonds will be reduced from $45 billion to $40
billion, and monthly purchases of mortgage-backed securities will be
reduced from $35 billion to $30 billion. When this news came out, it
sent shockwaves through financial markets all over the planet. But the
truth is that not that much has really changed. The Federal Reserve
will still be recklessly creating gigantic mountains of new money out of
thin air and massively intervening in the financial marketplace. It
will just be slightly less than before. However, this very well could
represent a very important psychological turning point for investors.
It is a signal that “the party is starting to end” and that the great
bull market of the past four years is drawing to a close. So what is
all of this going to mean for average Americans? The following are 8
ways that “the taper” is going to affect you and your family…
1. Interest Rates Are Going To Go Up
Following the announcement on Wednesday, the yield on 10 year U.S. Treasuries went up to 2.89% and even CNBC admitted that the taper is a “bad omen for bonds“. Thousands of other interest rates in our economy are directly affected by the 10 year rate, and so if that number climbs above 3 percent and stays there, that is going to be a sign that a significant slowdown of economic activity is ahead.
Read more at http://investmentwatchblog.com/the-taper-is-on-8-ways-that-this-is-going-to-affect-you-and-your-family/#AIwgYXpl52gcogyl.99
1. Interest Rates Are Going To Go Up
Following the announcement on Wednesday, the yield on 10 year U.S. Treasuries went up to 2.89% and even CNBC admitted that the taper is a “bad omen for bonds“. Thousands of other interest rates in our economy are directly affected by the 10 year rate, and so if that number climbs above 3 percent and stays there, that is going to be a sign that a significant slowdown of economic activity is ahead.
Read more at http://investmentwatchblog.com/the-taper-is-on-8-ways-that-this-is-going-to-affect-you-and-your-family/#AIwgYXpl52gcogyl.99
The
unelected central planners at the Federal Reserve have decided that the
time has come to slightly taper the amount of quantitative easing that
it has been doing. On Wednesday, the Fed announced that monthly
purchases of U.S. Treasury bonds will be reduced from $45 billion to $40
billion, and monthly purchases of mortgage-backed securities will be
reduced from $35 billion to $30 billion. When this news came out, it
sent shockwaves through financial markets all over the planet. But the
truth is that not that much has really changed. The Federal Reserve
will still be recklessly creating gigantic mountains of new money out of
thin air and massively intervening in the financial marketplace. It
will just be slightly less than before. However, this very well could
represent a very important psychological turning point for investors.
It is a signal that “the party is starting to end” and that the great
bull market of the past four years is drawing to a close. So what is
all of this going to mean for average Americans? The following are 8
ways that “the taper” is going to affect you and your family…
1. Interest Rates Are Going To Go Up
Following the announcement on Wednesday, the yield on 10 year U.S. Treasuries went up to 2.89% and even CNBC admitted that the taper is a “bad omen for bonds“. Thousands of other interest rates in our economy are directly affected by the 10 year rate, and so if that number climbs above 3 percent and stays there, that is going to be a sign that a significant slowdown of economic activity is ahead.
Read more at http://investmentwatchblog.com/the-taper-is-on-8-ways-that-this-is-going-to-affect-you-and-your-family/#AIwgYXpl52gcogyl.99
The unelected central planners at the Federal Reserve have decided
that the time has come to slightly taper the amount of quantitative
easing that it has been doing. On Wednesday, the Fed announced that
monthly purchases of U.S. Treasury bonds will be reduced from $45
billion to $40 billion, and monthly purchases of mortgage-backed
securities will be reduced from $35 billion to $30 billion. When this
news came out, it sent shockwaves through financial markets all over the
planet. But the truth is that not that much has really changed. The
Federal Reserve will still be recklessly creating gigantic mountains of
new money out of thin air and massively intervening in the financial
marketplace. It will just be slightly less than before. However, this
very well could represent a very important psychological turning point
for investors. It is a signal that “the party is starting to end” and
that the great bull market of the past four years is drawing to a
close. So what is all of this going to mean for average Americans? The
following are 8 ways that “the taper” is going to affect you and your
family…1. Interest Rates Are Going To Go Up
Following the announcement on Wednesday, the yield on 10 year U.S. Treasuries went up to 2.89% and even CNBC admitted that the taper is a “bad omen for bonds“. Thousands of other interest rates in our economy are directly affected by the 10 year rate, and so if that number climbs above 3 percent and stays there, that is going to be a sign that a significant slowdown of economic activity is ahead.
Read more at http://investmentwatchblog.com/the-taper-is-on-8-ways-that-this-is-going-to-affect-you-and-your-family/#AIwgYXpl52gcogyl.99
1. Interest Rates Are Going To Go Up
Following the announcement on Wednesday, the yield on 10 year U.S. Treasuries went up to 2.89% and even CNBC admitted that the taper is a “bad omen for bonds“. Thousands of other interest rates in our economy are directly affected by the 10 year rate, and so if that number climbs above 3 percent and stays there, that is going to be a sign that a significant slowdown of economic activity is ahead. (more)
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