Guest Tony n Terrific Posted July 29, 2009 Report Share Posted July 29, 2009 A China-led sell-off could cause bond prices to fall and interest rates to shoot higher. That could have disastrous implications on the U.S. economy since higher rates could cripple chances for a sustained recovery. http://money.cnn.com/2009/07/29/markets/th...sion=2009072913 Link to comment
Yuanyang Posted July 29, 2009 Report Share Posted July 29, 2009 A China-led sell-off could cause bond prices to fall and interest rates to shoot higher. That could have disastrous implications on the U.S. economy since higher rates could cripple chances for a sustained recovery. http://money.cnn.com/2009/07/29/markets/th...sion=2009072913 The Saudis and other oil nations hold alot of our bonds too. China needs oil and they wouldn't want to screw over their suppliers now would they. Link to comment
fineart Posted July 30, 2009 Report Share Posted July 30, 2009 A China-led sell-off could cause bond prices to fall and interest rates to shoot higher. That could have disastrous implications on the U.S. economy since higher rates could cripple chances for a sustained recovery. http://money.cnn.com/2009/07/29/markets/th...sion=2009072913Tony, isn't that bond prices and interest grow to same direction? Either both rise, or both drop, according to economics? I am eager to learn. Might I could get some profound answer here. By the way, bubble economy is "Pao Mo Jing Ji" Link to comment
fineart Posted July 30, 2009 Report Share Posted July 30, 2009 I'm not Tony, but no. Price and yield are inverse; the higher the price the lower the effective rate. BTW - the Shanghai is up 1.25% right now.Hi, Mr. Leo, that is good point. Let me think now... Link to comment
Randy W Posted July 30, 2009 Report Share Posted July 30, 2009 A China-led sell-off could cause bond prices to fall and interest rates to shoot higher. That could have disastrous implications on the U.S. economy since higher rates could cripple chances for a sustained recovery. http://money.cnn.com/2009/07/29/markets/th...sion=2009072913Tony, isn't that bond prices and interest grow to same direction? Either both rise, or both drop, according to economics? I am eager to learn. Might I could get some profound answer here. By the way, bubble economy is "Pao Mo Jing Ji" Yeah - mine was more like "air bubble" Link to comment
fineart Posted July 30, 2009 Report Share Posted July 30, 2009 A China-led sell-off could cause bond prices to fall and interest rates to shoot higher. That could have disastrous implications on the U.S. economy since higher rates could cripple chances for a sustained recovery. http://money.cnn.com/2009/07/29/markets/th...sion=2009072913Tony, isn't that bond prices and interest grow to same direction? Either both rise, or both drop, according to economics? I am eager to learn. Might I could get some profound answer here. By the way, bubble economy is "Pao Mo Jing Ji" Yeah - mine was more like "air bubble" You know much, mister. Thumb up. Link to comment
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