WHY DO BANKS HOPE BOND INVESTORS WILL DEMAND HIGHER YIELDS
The interest rates will have to go up. When it does the banks will collapse and Bond prices will drop, decreasing the valuations of the bank. The bond prices will collapse as interests go caused by tighter money lending. Since 2000, the stock market has been moving sideways. The stock market could crash downward like the great depression should investors begin selling off the bond market. Once bonds go then stocks follow fearing rising interest rates.[Learn More ...]
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