Loading ...Ask ourselves. Or yourselves. If rates are so low, why do people need 6 year 72 month car loans to buy a new car? Instead of the old 3 year 36 month car loans that high school graduates used when they buying new Chevelle SS 396, SS Camaros, GTOs, 442s, Corvettes, and my own…
Cousin Vinny car, DeLorean’s predecessor to the GTO, my 1963 Pontiac LeMans 326 Cu In, 264 Hp, independent real axels, rear mounted standard transmission, and under 3,000 lbs, and $2840, and 3% sales tax. I was only 20 years old my father had to co-sign the loan. Four other friends bought all the same cars, different colors.
This was all before globalization and before imports. Of “cheaper”? high quality cars. Some times CHEAP isn’t really cheaper. Only mathematically cheaper, but not CHEAP. Cheap is cheap. TPTB made the USA join a global commune. Like the hippy one they had in Ca before it imploded. Now the global one is imploding. The USA now has a $22 trillion national debt by importing “cheaper” high quality products.
Bon Apatite America, enjoy, gorge yourselves. 🙂
https://finance.yahoo.com/quote/%5ETNX?p=^TNX&.tsrc=fin-srch
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Beyond the immediate coronavirus fears, investors have also pointed to deeper factors for pushing bond yields lower, such as depressed interest rates abroad, a persistent drop in growth and inflation rates, and a lack of safe assets that can rival the depth and liquidity of the U.S. Treasurys market.
“People are just lining up to buy Treasurys,” said Nathan Sheets, chief economist for PGIM Fixed Income, in an interview.
Ultra-low interest rates in Europe and Japan have driven out income-hungry overseas investors into the U.S., the one place where investors can obtain positive yields in risk-free government paper. The Fed’s rate cuts last year have also reduced the cost of hedging for currency fluctuations, making U.S. investments a much more attractive place for cross-border bond buyers.
“The simple reality is that U.S. rate levels are ultimately driven by global factors,” said Stuart Sparks, a rates strategist at Deutsche Bank, in a weekend note.