As I mention in my video, the price of bonds (in general) have decreased causing yields to increase. The above graph shows comments from the Fed which has led so many people to have speculated they’d cut back on the bond buy back.
As of last month, the Fed Chairman has stated the bond buy back will stay in place.
For more graphs and a discussion, here’s the full article.
Full Article and Graphs
By far the easiest and best chart I’ve seen to explain the European problem was published last weekend in the New York Times.
If you’ve been wondering if you’re the only person confused by what all the hub bub is about, this is your opportunity to get caught up.
Click for an outstanding chart on the European problem
That might sound good, but what it really means is that the prices are plunging.
Stay away from Greece and watch Europe closely.
Greek Bond Yields Surge – Link
Now that the US has lost it’s AAA rating, who’s left?
20 countries with AAA Rating – Link
One of the effects of a US Government downgrade is a municipal downgrade to follow.
If you’ve been following my newsletters over the past few years, you know I’ve advised you to watch your municipal holdings closely if you have any at all.
The free (relatively) capital market ultimately determines the cost municipals will have to pay to borrow money.
Municipals to be Downgraded? – Link
If the US Gov’t is downgraded (I argue when not if) then 7,000 municipal bonds will be automatically downgraed as well. At least according to Moody’s.
This really hurts retirees as they’re the largest part of this market.
7,000 Muni Bonds at Risk of Automatic Downgrade — Link