Could Japans earthquake affect interest rates

Could Japans earthquake affect interest rates

I have had a lot of clients ask me in the last few days, Could Japans earthquake affect interest rates and based on everything I have read today says definitely YES.

It is heart wrenching to see thousands of peoples lives in such turmoil and suffering losses of their family members, homes and jobs and pretty much everything you and I take for granted. My families heart, thoughts and prayers go out to all those affected by this tragedy.

Could Japans earthquake affect interest rates here is how the situation could play out

The negative affects of this huge catastrophe will have huge impact on the world economy and ours as well and the biggest reason is that Japan is one of the largest holders of US Treasury debt.  Based on reports I have read there is a strong liklihood that Japan will need to sell a lot of this US debt in order to fund its reconstruction efforts and also to keep its own fragile economy afloat.  If this happens the flood of treasuries will flood into the bond markets and inevitably drive up interest rates.  

Could Japans earthquake affect interest rates my guess is that we will see the world markets and interest rates get tossed around like Hulk Hogan in a wrestling match.  Buckle up because we are in for a bumpy ride.

Could Japans earthquake affect interest rates ? To get more insight into this and to lock into a competitve interest rate give me a call today at 612-250-1544.