- 30y mortgage interest rate breaking a 40yo trend. - MBB down while being used by big players as collateral. - DXY breaking a 40yo trend (not in the chart) can cause bond defaults around the world. - Fed has only started raising rates.
* If MBB keeps going down, might see some marge call and flash crashes in the market. * If MORTGAGE30 keeps going up, will increase the mortgage default, having 2008 back at it. (DRSFRMACBS) * If bond defaults start around the globe (Sri Lanka, Pakistan, Egypt, Kenia), DXY will keep going up, making the US exports dump (12% GDP)
+ To avoid foreign bond defaults, Fed can make currency swaps with other central banks, to avoid pumping the DXY. + To avoid margin calls and mortgage defaults, Fed can slow down the rate hikes. + To avoid the inflation hitting people's pocket, they might re-launch covid stimmies for "food and gas".