Wed, 24 January 2018
Apparently, if you want to watch a trillion dollars vaporize in 2018 all that's required is a 1% rise in interest rates.
No, I'm not kidding you. It's science. (thanks, Ron Burgandy)
They can actually calculate what a 1% rise in interest rates will mean to the value of bonds, and it turns out to be a loss of 1.2 billion dollars.
I've been warning for a long time that the next great crash will probably originate in the bond market. Rapidly rising interest rates due to a lack of confidence or the need to stave off inflation would crush the economy due to the massive number of leveraged bondholders.
It's something to keep an eye on as you plan for the future.
How much of this is true? We don't know because we don't have the text messages or the whistleblower to corroborate what the Republicans are saying. From what I can tell the story is a bit overblown and I'll explain on today's show.
I've got a stack of stories covering the bonuses, pay raises, and stock options companies are handing out to their employee's thanks to the recent tax cut.
But the more I read, the more frustrated I get because I have the sense people are focused on the wrong things.
Today I'll give you what I hope is some motivation to throw off your old beliefs and challenge yourself to achieve more this year.
Have a great Day!