Fed Levitating Bond Prices Same Way 0% Down Levitated Home Prices

Bubbles are a popular way of describing unsustainable high prices. Stocks and bonds are at bubble levels just the way housing values were before they collapsed in the last decade. Bond prices are as high as they can get, since interest rates are about as low as they can get. As interest rates started going down in 2008 bond prices went up. And as interest rates stay down, the best and safest corporate use of free cash flow is to shrink the overall amount of shares, rather then making anything resembling a risky investment. So more cash and less shares in the hands of the institutions that own 80% of all US stock has meant ever rising stock prices. Read More The post Fed Levitating Bond Prices Same Way 0% Down Levitated Home Prices appeared first on TrimTabs Money Blog.