Figure: Koren your pension contributions, it might not worth much today, going to evaporate and wit

Here is a link to the original article Calcalist bond apocalypse: When the bubble burst greatest of your pension, it may not worth much today, going to evaporate and with a massive share of the world economy. Believe that thousands of traders, brokers, banks and fund managers
Figure: Koren your pension contributions, it might not worth much today, going to evaporate and with a massive share of the world economy. So believe thousands of traders, brokers, banks and fund managers. Chorus of voices warning against blowing bubble 30 years - the bond bubble - silent strength compared to minority voices who warned bubble sub - prime. Do not say we did not warn.
Read more Calcalist: agio "3D hurricane will strike the West in the years ahead" agio: financial disease that the world misses agio: self-destruct start Bill Gross. When Gross speaks, markets listen. Gross (Gross), PIMCO fund manager headed almost imaginary bonds in the amount of $ 2 trillion, is considered the undisputed king of bonds. Now, is concerned. fashion game Earlier fashion game this year he warned his investors fashion game and the world terrified bonds impending rupture at all, and recommended in the memorandum fashion game under the name Money for Nothing, Checks for Free, concentrating on short-term bonds, commercial companies and stay away from those long-term U.S. government. In the same breath, one must note that Gross warns of bond bubble for at least two years. Meanwhile, his predictions have not materialized, but if Gross afraid memos it publishes inflation comedy series "lift their heads and wipe the bond market, the past eight months, inflation occurs in the number of voices join him and warn against bond bubble burst.
Goldman Sachs, for example, sent its leaders warning the public fashion game investors, while the bank itself takes steps to minimize the risk of exposure to the bond market. Vice President of the Bank in January said Gary Cohn (Cohn) to anyone who would listen Economic Forum in Davos, fashion game that The Bank expects "significant pricing in the bond market." This warning polite and restrained which is translated by the great fear. while CEO Lloyd Blankfein Bank (Lloyd Blankfein), who is considered fashion game one of the world's people Smug warned early last month that the risk of a crash in the bond market increased significantly recently, and investors are not prepared for such a scenario. He recommended a policy of Goldman Sachs itself, and borrow as much as possible at low interest rates today, before the dragon fashion game inflation Gross emerging from the coma imposed their central banks around the world. fashion game Blankfein also led the investment bank in his borrow record amounts of bonds issued to $ 8 billion, plus another $ 6 billion in other debt instruments. But not just investors - on Wall Street leaders warn oncoming apocalypse. Also Fitch rating agency (Fitch) warned late last December crash. "A sudden increase in interest rates could destroy the investment fashion game portfolios of insurance companies and pension funds," said the rating fashion game agency. "The current fashion game zero interest levels do not continue over time, and back to interest rates at the beginning of 2011, the state will happen sooner or later, you may delete about 30% of the value of the bond market." In global terms, cancellation of about 50 trillion market, estimated at 2011 157 trillion. In other words, this is equivalent to delete the annual GDP of the entire world. Meanwhile, last year, investors flocked to buy 974 billion of new bond issues in the U.S. alone. relatively fashion game modest fall of 20%, delete millions of their pensions, and disable the global economy Similarly estate crisis in 2007. But many voices warning fashion game of the bond bubble talk about deletions of 50% - a situation that will create no less colossal market collapse and deep recession will last a decade.
Letter to the masses what is the bond? Bond is no more loans given state or commercial company by the public. Instead of going to the bank, the state or the company issuing a bond that complies few fixed rules: loan amount, annual interest payable on the loan, the interest payment date on the loan, date of expiry of the Hague " report and the date of the original loan payment itself. Investors purchase bonds for various reasons, but first and main one, especially when it comes to government bonds, is security. Conservative investors looking for low risk and peace of mind, knowing that the Arabs for government bonds are the countries issuing them, and those countries fashion game generally have a higher credit rating and lower likelihood of default. Additional fashion game reason to purchase government bonds is the yield they provide, or professional jargon "coupon". Most cases yield a fixed, known, enabling investors to compare it to other financial instruments market, know for sure what they are getting high for their money and get a picture of the risk they are taking. Here's a local example: In late January, Israel issued government fashion game bonds. IPO of the two bonds offered investors totaling billion for 10.5 years, at a yield of 3.213%. Days when investment channels are just beginning to recover from the long, 3%, and some are pretty good yield for high security borrower, in this case the Israeli government will fulfill fashion game its commitments and will get into a state of bankruptcy. Still, it is a country. But that's just it - even failed states. Countries find themselves in a situation where they can not meet their payments fashion game to debtors. Countries suffer recession and unemployment severely hurt tax revenues and the ability to repay debts. After all, some taxes are going to cover debt payments fashion game enabled the successful bond issue, that set state coffers billion here and now. Ability fashion game of states that meet their payments to creditors is crucial. Due, for example, the steps of the financial rating agencies, financial health constantly countries. Country economic situation sturdy and solid as Germany, for example, fashion game you will get flawless rating agencies. fashion game other countries, like Greece, or even recent UK that show signs of weakness