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This is probably the thing that will break first, and the thing to watch in the market. Stocks can go up or down, but if borrowing gets too expensive, interest
by seanmcdirmid 2y ago
This is probably the thing that will break first, and the thing to watch in the market. Stocks can go up or down, but if borrowing gets too expensive, interest rates will soar. Even cutting the benchmark rate won't help much if that reduction doesn't extend to US treasuries that housing loans are tied to.
- toomuchtodo 2y agoThis is an underrated comment. The bond market is independent of any branch of the US government, and the federal reserve. It controls long term debt costs, inlcuding treasuries and mortgages (as you mention).
- deleted 2y ago[deleted]