More Pressure on Interest Rates
Junk bonds are increasingly in default and that is simply going to put more pressure on interest rates.
How many ways is the pressure for rising interest rates coming?
There has to be less interest in lending to the US with no government indications that there are any mores to more fiscal responsibility.
There's the bad mortgages that have to be paid for somehow and increasing rate spreads have to happen.
There's the bad construction loans that are falling apart.
There's the CDOs.
There's the credit card debt that is increasing in defaults.
There's the student load debt that's getting into trouble as expected opportunities do not materialize.
There's the car loans that have been rolled over to exceed the cost of the vehicles that's getting into trouble.
Hmmm, there is a pattern here, called debt.
None of the economic stimulus of recent years has been paid for and many people's investments are tied to other people or business paying what they owe back.