@MarkMcg86123992 @U_Ag_ @finding_finance The system is telling me that no one knows the default threshold. 2.5 is arbitrary. And that historically rates and inflation have closely correlated
@MarkMcg86123992 @U_Ag_ @finding_finance For sure I understand that. I’m just not so convinced that means they will auto-default imminently as it hit 2.5 and will continue to go higher. Powell said rate hikes will continue in September did he not?
@MarkMcg86123992 @U_Ag_ @finding_finance A couple years ago inflation was only at 2 percent. This time inflation:fed rate is around 4x higher. This ratio is unprecedented. And will they really default at 2.5 though? They are already planning for 3 plus in September