Dear Santa: Please bring me Chinese buyers of US Treasury Bonds
Apparently, the Chinese government isn’t pleased with our ever-increasing national debt.
[S]tocks were down sharply Monday largely because of a slump in the dollar …
The big news Friday was not how much shoppers were spending at stores, but that China — a huge backer of U.S. debt — may cut back on purchases of U.S. Treasury bonds because of worries about the dollar’s weakness.
That could send interest rates on another upward climb, R.M. Schneiderman reports for Forbes — the last thing the housing market needs right now.
Definitely a bad development, but of course, not just for the real estate market, but for borrowers, nationwide, as well as for anyone who has any credit card or other unsecured debt.
Ahhh!!!
Still, several economists and market experts think the Fed will lower rates, the next time they meet, on December 12th.
I sincerely doubt it.
Source: The grinch who stole the 25 basis point reduction - By Matt Carter, Inman News, quoting a story by R.M. Schneiderman, Forbes
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