BigRedBuster Posted March 26, 2019 Share Posted March 26, 2019 13 minutes ago, ZRod said: Anybody want to give me the ELI5 for the yeild curve? I've never sat down and tried to understand it very well. All I know is everyone points to it as an indicator. I’m no expert so if someone can correct me, feel free. Typically, the yield on bonds are higher the longer the maturity is. So, a 10 year bond is a higher yield than a three year bond. The curve that demonstrates that on a graph is the yield curve. There are many factors that influence each of those yields. One big one is the economy. Now, if the three year bond yield goes higher than the ten year, that is what’s called “inverted”. Basically, that shows investors are pouring money into ten year bonds because they are not comfortable with other investments (stocks). That drives down the ten year yield and the three year yield up. 1 1 Link to comment
ZRod Posted March 26, 2019 Share Posted March 26, 2019 49 minutes ago, BigRedBuster said: I’m no expert so if someone can correct me, feel free. Typically, the yield on bonds are higher the longer the maturity is. So, a 10 year bond is a higher yield than a three year bond. The curve that demonstrates that on a graph is the yield curve. There are many factors that influence each of those yields. One big one is the economy. Now, if the three year bond yield goes higher than the ten year, that is what’s called “inverted”. Basically, that shows investors are pouring money into ten year bonds because they are not comfortable with other investments (stocks). That drives down the ten year yield and the three year yield up. The last paragraph makes sense. Thanks! I aIways thought the yeild was some how controlled by the fed. Guess I'll actually have to do some research. Link to comment
BigRedBuster Posted March 26, 2019 Share Posted March 26, 2019 Just now, ZRod said: The last paragraph makes sense. Thanks! I aIways thought the yeild was some how controlled by the fed. Guess I'll actually have to do some research. No, ultimately it’s controlled by the demand for the bond. 1 Link to comment
TGHusker Posted August 6, 2019 Author Share Posted August 6, 2019 On 4/10/2019 at 3:32 PM, knapplc said: Greatest economy since Alexander the Great! 1 Link to comment
TGHusker Posted August 6, 2019 Author Share Posted August 6, 2019 42 minutes ago, knapplc said: Trump Cultist will just say - we have to go through a 'little' discomfort so savior Trump makes all things right. Link to comment
funhusker Posted August 6, 2019 Share Posted August 6, 2019 2 minutes ago, TGHusker said: Trump Cultist will just say - we have to go through a 'little' discomfort so savior Trump makes all things right. Well, it's what "patriots" do! Link to comment
Ratt Mhule Posted August 6, 2019 Share Posted August 6, 2019 Come on baby, crash and burn! Daddy wants a cheap house! Link to comment
ZRod Posted August 6, 2019 Share Posted August 6, 2019 20 minutes ago, Frott Scost said: Come on baby, crash and burn! Daddy wants a cheap house! I just bought a condo in March... The sick thing is that the GOP will use this as another incentive to lower taxes further wrecking the deficit and the economy. The problem with what they've been doing is that we have no where left to go to stimulate the economy. There is going to be a reconning if this trade was isn't resolved. The austerity measures that will need to happen could cripple a generation. Link to comment
BigRedBuster Posted August 6, 2019 Share Posted August 6, 2019 20 minutes ago, Frott Scost said: Come on baby, crash and burn! Daddy wants a cheap house! Well....here you go. 2 Link to comment
Ratt Mhule Posted August 6, 2019 Share Posted August 6, 2019 27 minutes ago, BigRedBuster said: Well....here you go. I wish I would have been out of college with a job when 2008 market crash hit. Could have made some big bucks buying cheap, forclosed houses and selling them a few years later haha. And just so you guys don't think Im a heartless a$$h@!e, I don't actually want the economy to crash and people to get hurt. It will crash, but I don't actually want it to. Link to comment
BigRedBuster Posted August 6, 2019 Share Posted August 6, 2019 Just now, Frott Scost said: I wish I would have been out of college with a job when 2008 market crash hit. Could have made some big bucks buying cheap, forclosed houses and selling them a few years later haha. And just so you guys don't think Im a heartless a$$h@!e, I don't actually want the economy to crash and people to get hurt. It will crash, but I don't actually want it to. Oh, I fully understand. I had the same thoughts. I remember in 2009(??) I was on a conference call talking about economic issues. One guy was from Florida. Right before the crash, he had bought a house in the Keys for $650,000. He was trying to dump it and had the price all the way down to $250,000 and still no offers. I know now the market is back and whomever bought it is loving it. I really wished I could have had a bank of cash to do something. But, that's the problem with down turns.....far fewer people have the cash to buy something. 1 Link to comment
TGHusker Posted August 6, 2019 Author Share Posted August 6, 2019 2 hours ago, BigRedBuster said: Oh, I fully understand. I had the same thoughts. I remember in 2009(??) I was on a conference call talking about economic issues. One guy was from Florida. Right before the crash, he had bought a house in the Keys for $650,000. He was trying to dump it and had the price all the way down to $250,000 and still no offers. I know now the market is back and whomever bought it is loving it. I really wished I could have had a bank of cash to do something. But, that's the problem with down turns.....far fewer people have the cash to buy something. Think back to the dot com bust 2000-2002- People were actively taking out loans on their paid for homes to invest in Dot Com companies in the later 1990s. then boom Link to comment
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