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It is not that simple. Right now interest rates are extremely low, so what you said is likely to be the case. On the other hand, as the economy improves credi
by betterunix2 6y ago
It is not that simple. Right now interest rates are extremely low, so what you said is likely to be the case. On the other hand, as the economy improves credit risk will decline, and lower credit risk can drive bond yields lower (this is exactly what happens in the high yield market), which is more or less what happened for three decades beginning in the 1980s.
- eru 6y agoYes, that's true. Might point was just that a short position in the bond market is not automatically 'betting against the Western financial growth and stability.' (And, of course, the Western world is bigger than the US.)