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foreign and you are watching Ledger life your daily video on everything crypto macro and anaphase today we have got a heavy weight in the world of Finance on our radar Peter Schiff he is a chief Economist and Global strategist at europac known for his doomsday-like outlook on economic Trends shifts based on bearish predictions for the U.S financial Market are causing quite a still case forecasting a dire future that includes Rising mortgage rates surging bond yields and the risk of stagflation while alarming these predictions underscore the need for investors to stay informed and prepared for Rapid shifts in the financial landscape so grab your financial Life West we are diving deep into what all of this could mean for us buckle up because it might get a little choppy beta shifts Grim Outlook begins with the 30-year fixed rate mortgage at 7.9 percent it's already a concern but shift takes it a step further by predicting it could surpass 9 percentage by year end why is this significant well Rising mortgage rates can have a domino effect when rates climb fewer people can afford horns leading to a slump in the housing market additionally it could lead to a surge in mortgage defaults which might Force Banks to offload their known performing mortgage bagged Securities onto the Federal Reserve this scenario could significantly inflate the fed's balance sheet potentially causing instability in the financial system shifts comments on surging bond yields sound equally alarming higher bond yields could spell disaster for various entities including the federal government state and local governments and many banks the reason behind this concern is that higher yields increase the cost of service in government debt potentially leading to budget deficits and financial crisis it's worth noting that historically certain Bond years have preceded economic downturns making shifts warnings particularly not worthy turning to the stock market shift doesn't offer much optimism He suggests that we are tutoring on the edge of stagflation a combination of economic stagnation high unemployment and Rising inflation stagflation is a nightmare scenario for investors as it can erode the value of assets while making it difficult for companies to grow potentially leading to reduced stock market performance shifts characterization of the bone Market as crashing in slow motion highlights the potentially dangerous situation we are in the artificially low yield curve of the past 15 years may not be sustainable when the yield curve normalizes which shift anticipates it could disrupt an economy that has grown accustomed to cheap borrowing costs this normalization could impact everything from mortgage rates to corporate borrowing for those seeking refuge in money markets shift delivers a reality check he wants that these safe havens may not provide the security investors expect with the prospect of significant inflation eating away at the Dollar's purchase in power even seemingly safe Investments may not offer the protection investors seek that's it for today's video if you found it informative don't forget to like share and subscribe to Ledger life and as always leave your thoughts and comments down below thanks for watching and we'll catch you in the next one foreign
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