The 10 year is slowly creeping back up on the sell-off in Treasuries. Once it gets above 2.80 like it is now, it can quickly run up to the 3.50 danger zone. The private equity house flippers in the U.S. are getting out. The worst thing is that the Fed, through QE, has taken the toxic debt off the balance sheets of the banks so they could loosen a bit and start lending but the home buyers are not coming forward to borrow. The result is that the banks have now resorted back to sub-prime lending again.
This time however, the problems are much, much worse. Some are saying this is the GFC times 10 that is building. The Fed is insolvent due to holding all of this toxic debt and they have no way to unload it.
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