Our Financial Market

We Are Witnessing One of the Greatest Financial Market Crashes in History Right Now

As the 10-year Treasury yield reaches 4.8%, a level last seen just prior to the 2008 financial crisis, it is apparent that this same pattern of behavior is repeating itself.

Bond prices are decreasing as yields rise, indicating an impending crash in bonds before stocks follow suit. This development serves as a reminder of the fragility of the economy and the need for caution when investing in high-risk markets.

We have been warned time and again that high interest rates could have a devastating effect on our economy, and now we are beginning to see that reality take shape.

Banks are facing unprecedented levels of unrealized losses, with the recent increase in bond yields driving this number even higher. The situation has been compounded by the soaring mortgage rates reported by Freddie Mac’s Primary Mortgage Market Survey; the average rate for a 30-year fixed-rate mortgage is now 7.49%, up from 7.31% last week and 6.66% a year ago, while 15-year mortgages averaged 6.78%.

Read more about the financial market under Joe and Joe keeps the printing presses running.