If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(CNBC)   Data trends: If yields rise much higher, banks may have to pay actual interest to account holders. BoA 'analyst': If that happens, markets will come "unhinged"   (cnbc.com) divider line 38
    More: Stupid, technical analysis  
•       •       •

2379 clicks; posted to Business » on 22 Nov 2013 at 8:29 PM (38 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



38 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest
 
2013-11-22 06:02:21 PM
Quick, let me get to the Starfleet replicator and ask for a quantum violin, so that I may play for you the song of my people.
 
2013-11-22 06:05:31 PM
"the technician does see yields going higher as bonds drop."

I guess that's why he's in the 1%. It takes a special kind of insight to know yields go up as prices come down.
 
2013-11-22 06:26:13 PM
OH LAWDY LAWD WE MAGHT HAVE TUH PAY PEOPLE MONEH TO HAND US ALL THEYUH MONEH OH LAWDY LAWD WHAAAH? WHAAAH LAWD?
 
2013-11-22 06:40:00 PM
My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW
 
2013-11-22 06:41:14 PM
Oh, and they charge me no foreign transaction fees when abroad. Better than AmEx, that
 
2013-11-22 06:46:29 PM
No it doesn't.
 
2013-11-22 07:43:31 PM

what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW


USAA reimburses all ATM fees.
 
2013-11-22 08:08:36 PM
EQUITIES markets will become unhinged. Because there is so much goddamn money flowing in as people search for returns. If bonds start paying a decent rate above inflation lots of money will go back there. When that happens, the turn will be quick. There are a lot of stocks with insane valuations that will get decimated.

No one knows when that will be, but it is coming.
 
2013-11-22 08:44:56 PM
MacNeil Curry, the head of global technical analysis at Bank of America Merrill Lynch, warns...

In case anyone's not familiar with this term, it's shorthand for bullshiat.
 
2013-11-22 08:59:24 PM
So the GOP was trying to manipulate the market.
 
2013-11-22 09:22:59 PM
Umm, TFA or what they are talking about has nothing to do with the interest you get on the $1,500 in your savings account, subby.
 
2013-11-22 09:55:13 PM

Debeo Summa Credo: Umm, TFA or what they are talking about has nothing to do with the interest you get on the $1,500 in your savings account, subby.


Yeah, that. I mean, they're related and correlated, but rising interest rates in savings/CDs is not in any way going to threaten the banking system. You know why? Because the rates they're getting on loans will go up too, and probably by a larger amount.

The concern is that everybody is waiting for the system to "break" and for US Treasuries to collapse, and a quick rise towards 4%, while not in and of itself dangerous, could really start to accelerate as people start dumping bonds. THAT is the risk they're speaking of.

OTOH, as someone else mentioned, there is such demand for return right now that any weakness in the debt markets might well be filled by money that would flow out of stocks and savings.
 
2013-11-22 10:18:56 PM
"If we take out 3 percent, we'll probably get a move up to about the 3.17, 3.30 area," Curry said. "And if we do it with some momentum, then it's going to cause quite a bit of panic."

Sounds like someone is doing some "technical analysis."

In other words "bullshat."
 
2013-11-22 10:21:14 PM
Ah yes, it would disrupt the beloved liquidity of the markets. Because when forced to make slightly less money by forces outside of one's control or influence, the proper response is to completely panic and initiate global financial destruction.

Learn to grow corn in your cars, people!
 
2013-11-22 10:21:47 PM

NewportBarGuy: EQUITIES markets will become unhinged. Because there is so much goddamn money flowing in as people search for returns. If bonds start paying a decent rate above inflation lots of money will go back there. When that happens, the turn will be quick. There are a lot of stocks with insane valuations that will get decimated.


Then everyone will freak out and flee risk, and go to the standard safe haven of US Securities.
 
2013-11-22 10:28:32 PM
He's not wrong. He's an asshole and he's whining for the wrong reason, but he's not wrong.

The reality is that the only reason markets have been so steadily on the rise is that the yields have been so low that stocks are attractive enough to assume the risk. But, long term, that's not a viable option. And I say that as somebody with a lot of stocks.

At some point, if the goal is long term stability, we need to stop punishing people for saving their money and encourage more sensible - and lower yield - investment strategies. The problem is the "wrong" people benefit from that type of policy so.... yea....
 
2013-11-22 10:50:58 PM
I just unloaded some stock I've held since 2005 for a return of 7.x%. An investing genius I'm not but I beat my bank's checkbook interest rate.

So with that background I remain confused why higher yields are "bad."
 
2013-11-22 11:11:56 PM

edmo: I just unloaded some stock I've held since 2005 for a return of 7.x%. An investing genius I'm not but I beat my bank's checkbook interest rate.

So with that background I remain confused why higher yields are "bad."


They're bad or good depending on what you own. If you've got a lot of stocks or bonds, you're going to take a hit. If you're sitting on cash waiting for the opportunity for higher returns, you're going to benefit. If you're the federal government having to roll over low-yield expiring bonds, you're really up a creek.
 
2013-11-22 11:33:54 PM

what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW


This.
 
2013-11-22 11:50:54 PM

revrendjim: what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW

USAA reimburses all ATM fees.


Isn't USAA technically a credit union?  It's only open to military.
 
2013-11-23 01:09:30 AM

inglixthemad: what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW

This.


I'm sure that's nice if you have a nice big balance... but if I'm going to make a grand total of $36 on a 2000 balance (for example), it's kind of... yeah.

/need to find a REAL job here at some point, after the end of the semester...
 
2013-11-23 01:16:48 AM

Lsherm: revrendjim: what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW

USAA reimburses all ATM fees.

Isn't USAA technically a credit union?  It's only open to military.


...and family.

/Army brat
//the auto insurance kicks ass
, too
///oh, and they gave me $700 on my home purchase for using one of their real estate agents
///USAA ftw!
 
2013-11-23 01:20:30 AM

Bumblefark: Lsherm: revrendjim: what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW

USAA reimburses all ATM fees.

Isn't USAA technically a credit union?  It's only open to military.

...and family.

/Army brat
//the auto insurance kicks ass, too
///oh, and they gave me $700 on my home purchase for using one of their real estate agents
///USAA ftw!


Well yeah, I'm with them because my wife's family religion is Army.  But it's not really a bank, it's more of a credit union.
 
2013-11-23 01:39:31 AM

Lsherm: Bumblefark: Lsherm: revrendjim: what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW

USAA reimburses all ATM fees.

Isn't USAA technically a credit union?  It's only open to military.

...and family.

/Army brat
//the auto insurance kicks ass, too
///oh, and they gave me $700 on my home purchase for using one of their real estate agents
///USAA ftw!

Well yeah, I'm with them because my wife's family religion is Army.  But it's not really a bank, it's more of a credit union.


Yup. Just wanted to brag :)

Gotta admit, it's a pretty sweet deal, if you can get in on it. I used to enjoy it, back before "do not call" lists, when the auto insurance companies would call trying to get me to switch policies. All I had to say was "USAA," and they never called back...
 
2013-11-23 03:28:36 AM

impaler: NewportBarGuy: EQUITIES markets will become unhinged. Because there is so much goddamn money flowing in as people search for returns. If bonds start paying a decent rate above inflation lots of money will go back there. When that happens, the turn will be quick. There are a lot of stocks with insane valuations that will get decimated.

Then everyone will freak out and flee risk, and go to the standard safe haven of US Securities.


In case anyone didn't get the joke:

S&P downgrades US Treasury securities for the first time ever. Market panics. Investors flee risk and move to standard safe-haven: US Treasury securities
EQUITIES markets will become unhinged if securities rates go up, causing investors to flee to securities, causing the rate to go down.

It's funny how Republican scum hate the US so much and have so little faith in it, while I, a liberal, actually truly believe in its exceptionalism. Hypocrites and scum, that GOP..
 
2013-11-23 06:43:07 AM

NewportBarGuy: EQUITIES markets will become unhinged. Because there is so much goddamn money flowing in as people search for returns. If bonds start paying a decent rate above inflation lots of money will go back there. When that happens, the turn will be quick. There are a lot of stocks with insane valuations that will get decimated.

No one knows when that will be, but it is coming.


if bonds start paying a decent rate above inflation and money starts shifting to bonds, the return on them will go down. supply and demand and all that :)
 
2013-11-23 06:46:39 AM

NewportBarGuy: EQUITIES markets will become unhinged. Because there is so much goddamn money flowing in as people search for returns. If bonds start paying a decent rate above inflation lots of money will go back there. When that happens, the turn will be quick. There are a lot of stocks with insane valuations that will get decimated.

No one knows when that will be, but it is coming.


March 15 2014, 2:25 PM EST.

Give or take.

But you are right. The DOW needs to lose 3-4k. And it will.
 
2013-11-23 07:59:03 AM

NickelP: NewportBarGuy: EQUITIES markets will become unhinged. Because there is so much goddamn money flowing in as people search for returns. If bonds start paying a decent rate above inflation lots of money will go back there. When that happens, the turn will be quick. There are a lot of stocks with insane valuations that will get decimated.

No one knows when that will be, but it is coming.

if bonds start paying a decent rate above inflation and money starts shifting to bonds, the return on them will go down. supply and demand and all that :)


What? You mean, there won't be an unlimited amount of higher interest bonds available, driving equity prices to record lows?

The hell you say!
 
2013-11-23 08:27:58 AM
fark you, pay me!
 
2013-11-23 08:32:49 AM

impaler: impaler: NewportBarGuy: EQUITIES markets will become unhinged. Because there is so much goddamn money flowing in as people search for returns. If bonds start paying a decent rate above inflation lots of money will go back there. When that happens, the turn will be quick. There are a lot of stocks with insane valuations that will get decimated.

Then everyone will freak out and flee risk, and go to the standard safe haven of US Securities.

In case anyone didn't get the joke:

S&P downgrades US Treasury securities for the first time ever. Market panics. Investors flee risk and move to standard safe-haven: US Treasury securities
EQUITIES markets will become unhinged if securities rates go up, causing investors to flee to securities, causing the rate to go down.

It's funny how Republican scum hate the US so much and have so little faith in it, while I, a liberal, actually truly believe in its exceptionalism. Hypocrites and scum, that GOP..


So you're saying that if rates go up too much in treasuries, the market will panic, resulting in them flocking to treasuries?

mrburnsindestructible.jpg

Isn't that somewhat contradictory?

You are right that a crash in the stock market would result in a flight to quality, but the guy in TFA is saying that if rates spike, in may cause a rush to te exits exacerbating the spike.

We saw yields jump significantly in may when bernanke started talking about tapering. Rates are going up at some point, its just a matter or when and whether it can be managed slowly.

I think your political biases are starting to cloud your judgement.
 
2013-11-23 09:33:46 AM

what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW


It is a sad day when 1.8 is considered brag worthy.
 
2013-11-23 10:05:05 AM

gadian: what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW

It is a sad day when 1.8 is considered brag worthy.


These numbers are staggeringly low. How the hell is anyone making money at x<5% when inflation is taken into account? My In Laws just swore to high heaven that putting the 12,000 into a 2% college savings would be better than just burning the money now. I told them the future value was a lot less in 2025 than it is now, especially since that kind of money at that interest rate with regular payments STILL wouldn't touch future college bills taxed or not; so just pay off some bills.

They ignored me. I guess they see more deflation coming or something.
 
2013-11-23 10:23:25 AM

gadian: It is a sad day when 1.8 is considered brag worthy.


It's brag-worthy compared to my 0.01%.

/Once again, not a typo
 
2013-11-23 11:23:21 AM
Why haven't bankers and their families been reaped for their organs?
 
2013-11-23 07:38:35 PM
With the never ending expansion of the money supply the banks are more of a false front distribution center.

True banking is broken in both directions.

It doesn't seem to pay enough to keep up with inflation.

If you had money to loan it would be very difficult to compete. You would never know what rate to set to keep ahead of the printing presses. If you made a bad loan your would lose your real hard earned money. The false front industry has just been bailing themselves out and stiffing an unsuspecting populace with the loses.

Besides. Any of them give you a toaster lately?
 
2013-11-23 09:21:41 PM

gadian: what_now: My checking account pays me 1.8% with no minimums and repays all of my foreign ATM fees.

Credit Union, FTW

It is a sad day when 1.8 is considered brag worthy.


The first savings account I had earned north of 6%, if I recall correctly.

I remember thinking at the time, "wow, what a ripoff. Why do people even bother?"

/'scuse me, have to tend to my lawn...
 
2013-11-24 12:06:40 AM
Savings accounts are for suckers
 
2013-11-24 01:06:18 AM

Pumpernickel bread: Savings accounts are for suckers


Savings accounts are fine for their usage.

For instance, both my wife and I have separate Bank accounts we like the keep in the $5k range. We keep the rest of the spending money (anywhere from 10-25k) in a joint savings account. That way, we can shift it between accounts in case of emergency (my brother's house flooding during hurricane Sandy, etc...).

Of course, the real money is in  managed accounts, but a savings account is a decent place to park cash where we don't have to worry about someone messing with the checking accounts via credit card fraud/etc.
 
Displayed 38 of 38 comments

View Voting Results: Smartest and Funniest


This thread is closed to new comments.

Continue Farking
Submit a Link »





Report