10-Year Bond Yield
A lot’s changed since the day I was a registered stockbroker in 1968. When I bought my first house using Benjamin Franklin S&L, the interest rate was 7% and I made sure that I had the ability to refinance if rates went back to their norms. Then inflation under Pres. Carter got out of hand and interest rates went through the roof. Now we are back to levels of the 1940’s.
Where to from here? My guess is our debt crisis will lead to higher interest rates after the world deals with Europe and Japan. Then just the interest cost here in the U.S. will eat us alive. We will either default on our debts or inflate them out of existence.
The one hope is that we elect politicians who brave the wrath of voters and get us to take our medicine, however I don’t see anyone with big enough cojones!
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