--- title: "Meaning & Key Takeaway of: Manipulating the bond market is so…" description: "\"Manipulating the bond market is so greatly reducing the cost of capital that so far companies have been able to maintain profit margins without raising..." image: "https://sms4smile.com/quotes/i/ca6/porter-stansberry-16381_bond_manipulating-the-bond-market-is-so-great_2162515.jpg" --- # Manipulating the bond market is so greatly reducing the… ![“Manipulating the bond market is so greatly reducing the cost of capital that so far companies have been able to maintain profit margins without raising prices. As a result, we've been exchanging capital cost for commodity costs but you can only do that for so long.” quote by Porter Stansberry](https://sms4smile.com/quotes/i/ca6/porter-stansberry-16381_bond_manipulating-the-bond-market-is-so-great_2162515.jpg) [Download](https://sms4smile.com/quotes/i/ca6/porter-stansberry-16381_bond_manipulating-the-bond-market-is-so-great_2162515.jpg) [Open image](https://sms4smile.com/quotes/i/ca6/porter-stansberry-16381_bond_manipulating-the-bond-market-is-so-great_2162515.jpg) > “Manipulating the bond market is so greatly reducing the cost of capital that so far companies have been able to maintain profit margins without raising prices. As a result, we've been exchanging capital cost for commodity costs but you can only do that for so long.” [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Lower capital costs boost margins temporarily, but reliance on commodity price hikes is unsustainable. **In simple terms:** Cheap capital hides future cost risks. Key Takeaway Diversify cost strategies. Themes economics finance inflation business strategy Mood analytical cautious Type financial strategic When to use this quote - business planning - risk management - pricing strategy Key Concepts capital structure commodity pricing profit margins Questions to Reflect On - How will you protect margins if commodity costs rise? - What alternative cost‑saving measures can you implement? A Different Perspective Relying on commodity inflation may backfire. ★ ★ ★ ★ ★ No ratings yet [Bond](https://sms4smile.com/quotes/about/bond/) [Bond market](https://sms4smile.com/quotes/about/bond-market/) [Customer](https://sms4smile.com/quotes/about/customer/) [Profit](https://sms4smile.com/quotes/about/profit/) [Profit margin](https://sms4smile.com/quotes/about/profit-margin/) ## Related quotes > [I studied what happened in the bond and the stock markets during previous periods when the Fed stopped manipulating the bond market. In every…](https://sms4smile.com/quotes/porter-stansberry/i-studied-what-happened-in-the-bond-and-the-stock-markets-during/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [If you were to just design the perfect retirement plan, you would own the stock market or you would own the bond market. You…](https://sms4smile.com/quotes/john-c-bogle/if-you-were-to-just-design-the-perfect-retirement-plan-you-would-own/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Starting in the wake of the 2008 GFC (Global Financial Crisis), market observers have warned of a crash in the bond market. Initially, it…](https://sms4smile.com/quotes/max-keiser/starting-in-the-wake-of-the-2008-gfc-global-financial-crisis-market/) [Max Keiser](https://sms4smile.com/quotes/author/max-keiser/) > [People are putting their money into treasuries because they worry that the risk of putting their money into the bond market, the stock market…](https://sms4smile.com/quotes/michael-hudson/people-are-putting-their-money-into-treasuries-because-they-worry/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [The most serious problems lie in the financial sphere, where the economy's debt overhead has grown more rapidly than the 'real' economy's ability to…](https://sms4smile.com/quotes/michael-hudson/the-most-serious-problems-lie-in-the-financial-sphere-where-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [I still like TIPS (Treasury inflation-protected securities), and I think a big opportunity is coming in the municipal bond market.](https://sms4smile.com/quotes/wilbur-ross/i-still-like-tips-treasury-inflation-protected-securities-and-i-think/) [Wilbur Ross](https://sms4smile.com/quotes/author/wilbur-ross/) > [Markets need not be in sync with one another. Simultaneously, the bond market can be priced for sustained tough times, the equity market for…](https://sms4smile.com/quotes/seth-klarman/markets-need-not-be-in-sync-with-one-another-simultaneously-the-bond/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [The fact that the bond market is rallying today is a plus. If this ends up being a bear market, it will be one…](https://sms4smile.com/quotes/john-manley/the-fact-that-the-bond-market-is-rallying-today-is-a-plus-if-this/) [John Manley](https://sms4smile.com/quotes/author/john-manley/) > [The best time to make deficit reduction a priority is when the inflation rate and the bond market give you some indication that you…](https://sms4smile.com/quotes/ross-douthat/the-best-time-to-make-deficit-reduction-a-priority-is-when-the/) [Ross Douthat](https://sms4smile.com/quotes/author/ross-douthat/) > [“In sum, the most commonly used stock and bond market benchmark indexes cause economic harm, distort pricing information, and cause financial behaviours that are…](https://sms4smile.com/quotes/wayne-visser/in-sum-the-most-commonly-used-stock-and-bond-market-benchmark-indexes/) [Wayne Visser](https://sms4smile.com/quotes/author/wayne-visser/) > [I think if you go beyond a year - if this continues into the system in the out years, I think there is a…](https://sms4smile.com/quotes/franklin-raines/i-think-if-you-go-beyond-a-year-if-this-continues-into-the-system-in/) [Franklin Raines](https://sms4smile.com/quotes/author/franklin-raines/) > [Never try to time the bond market. Anyone who claims to know the future of interest rates is certifiable.](https://sms4smile.com/quotes/jane-bryant-quinn/never-try-to-time-the-bond-market-anyone-who-claims-to-know-the/) [Jane Bryant Quinn](https://sms4smile.com/quotes/author/jane-bryant-quinn/) > [“The creation of the mortgage bond market, a decade earlier, had extended Wall Street into a place it had never before been: the debts…](https://sms4smile.com/quotes/michael-lewis/the-creation-of-the-mortgage-bond-market-a-decade-earlier-had/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [The bond market is debating with itself what the intent of the Fed is. I don't think the Fed has a multi-step process. They…](https://sms4smile.com/quotes/paul-mcculley/the-bond-market-is-debating-with-itself-what-the-intent-of-the-fed-is/) [Paul McCulley](https://sms4smile.com/quotes/author/paul-mcculley/) > [The ECB's interventions in sovereign bond markets should not be perceived or interpreted as a 'freebie' for governments. They are temporary.](https://sms4smile.com/quotes/lucas-papademos/the-ecb-s-interventions-in-sovereign-bond-markets-should-not-be/) [Lucas Papademos](https://sms4smile.com/quotes/author/lucas-papademos/) ## More by Porter Stansberry > [There is no doubt in my mind that as central banks begin to abandon the dollar, there will be an enormous amount of monetary…](https://sms4smile.com/quotes/porter-stansberry/there-is-no-doubt-in-my-mind-that-as-central-banks-begin-to-abandon/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [I didn't understand anything about fracking or horizontal drilling until about 2010, when I first learned about the Eagle Ford.](https://sms4smile.com/quotes/porter-stansberry/i-didn-t-understand-anything-about-fracking-or-horizontal-drilling/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [You wouldn't want to underestimate the perfidy of the government. I have no doubt that the government will need to increase revenues substantially to…](https://sms4smile.com/quotes/porter-stansberry/you-wouldn-t-want-to-underestimate-the-perfidy-of-the-government-i/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [The fear is that if the dollar falls below 50% of the currency basket held by commercial and central banks and insurance companies, there…](https://sms4smile.com/quotes/porter-stansberry/the-fear-is-that-if-the-dollar-falls-below-50-of-the-currency-basket/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [The yuan is actually a very attractive currency and will prove to be very reliable-much more so than the U.S. dollar.](https://sms4smile.com/quotes/porter-stansberry/the-yuan-is-actually-a-very-attractive-currency-and-will-prove-to-be/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [As you know, the United States has been a net debtor to the world each year since 1976, I believe. We've put a huge…](https://sms4smile.com/quotes/porter-stansberry/as-you-know-the-united-states-has-been-a-net-debtor-to-the-world-each/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [I'm happy to make returns of 4% to 6% a year on my real estate portfolio. If inflation comes along I'll be able to…](https://sms4smile.com/quotes/porter-stansberry/i-m-happy-to-make-returns-of-4-to-6-a-year-on-my-real-estate/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [You see this in the oil industry time and time again. Fears that we've found the last oil, that we're going to run out,…](https://sms4smile.com/quotes/porter-stansberry/you-see-this-in-the-oil-industry-time-and-time-again-fears-that-we-ve/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [There's been a dichotomy in the world financial markets over the last 30 years between the developed markets and the developing markets. Brazil, for…](https://sms4smile.com/quotes/porter-stansberry/there-s-been-a-dichotomy-in-the-world-financial-markets-over-the-last/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [And I don't want my assets to be stuck inside a banana republic in the midst of a huge socialist experiment.](https://sms4smile.com/quotes/porter-stansberry/and-i-don-t-want-my-assets-to-be-stuck-inside-a-banana-republic-in/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [I was very bearish on natural gas for many years, pretty much from 2006 on. There was a tremendous natural gas bubble in the…](https://sms4smile.com/quotes/porter-stansberry/i-was-very-bearish-on-natural-gas-for-many-years-pretty-much-from/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [Historically, bad money always drives out good. Accordingly, if a central bank anywhere in the world sets up its currency to be backed by…](https://sms4smile.com/quotes/porter-stansberry/historically-bad-money-always-drives-out-good-accordingly-if-a/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [There is a tremendous amount of oil in Iraq and it's still very, very cheap due to all the political uncertainty. So if you…](https://sms4smile.com/quotes/porter-stansberry/there-is-a-tremendous-amount-of-oil-in-iraq-and-it-s-still-very-very/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [There is a belief, at least on the part of the American people, that they can borrow money forever without consequence.](https://sms4smile.com/quotes/porter-stansberry/there-is-a-belief-at-least-on-the-part-of-the-american-people-that/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [You can survive your income falling if it's not dramatic. Your income can decrease for a long time before you start living beyond your…](https://sms4smile.com/quotes/porter-stansberry/you-can-survive-your-income-falling-if-it-s-not-dramatic-your-income/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) [Explore all 40 Porter Stansberry quotes ](https://sms4smile.com/quotes/author/porter-stansberry/) ## More Bond quotes > [I always wanted to make a 'James Bond' film, and they only seemed to hire British directors, and I'd made 'Swingers' - they were…](https://sms4smile.com/quotes/doug-liman/i-always-wanted-to-make-a-james-bond-film-and-they-only-seemed-to/) [Doug Liman](https://sms4smile.com/quotes/author/doug-liman/) > ['Inequality' has become the political theme/slogan of our time in both Europe and the U.S., yet political leaders do not even bother to consider…](https://sms4smile.com/quotes/paul-singer/inequality-has-become-the-political-theme-slogan-of-our-time-in-both/) [Paul Singer](https://sms4smile.com/quotes/author/paul-singer/) > [“The bonds between a family are strange indeed.”](https://sms4smile.com/quotes/sara-sheridan/the-bonds-between-a-family-are-strange-indeed/) [Sara Sheridan](https://sms4smile.com/quotes/author/sara-sheridan/) > [No action hero is more closely associated with cars than James Bond.](https://sms4smile.com/quotes/richard-hammond/no-action-hero-is-more-closely-associated-with-cars-than-james-bond/) [Richard Hammond](https://sms4smile.com/quotes/author/richard-hammond/) > [I hope I will not be typecast as a Bond girl for the rest of my life. I'm very proud of being a part…](https://sms4smile.com/quotes/eva-green/i-hope-i-will-not-be-typecast-as-a-bond-girl-for-the-rest-of-my-life/) [Eva Green](https://sms4smile.com/quotes/author/eva-green/) > [Without wanting to claim that I'm really like James Bond I would certainly prefer to be thought of as closer to James Bond than…](https://sms4smile.com/quotes/rowan-atkinson/without-wanting-to-claim-that-i-m-really-like-james-bond-i-would/) [Rowan Atkinson](https://sms4smile.com/quotes/author/rowan-atkinson/) > [From '86 until the summer of last year, wherever I went, people would say, You would have made a great James Bond! Weren't you…](https://sms4smile.com/quotes/pierce-brosnan/from-86-until-the-summer-of-last-year-wherever-i-went-people-would/) [Pierce Brosnan](https://sms4smile.com/quotes/author/pierce-brosnan/) > [Apparently, Daniel Craig said I'd be a great Bond. Daniel, why did you say that? Dropped me right in it! What an honor it…](https://sms4smile.com/quotes/idris-elba/apparently-daniel-craig-said-i-d-be-a-great-bond-daniel-why-did-you/) [Idris Elba](https://sms4smile.com/quotes/author/idris-elba/) > [Don't hold against me that I don't own - that I don't own a single stock or bond. Don't hold it - I have…](https://sms4smile.com/quotes/joe-biden/don-t-hold-against-me-that-i-don-t-own-that-i-don-t-own-a-single/) [Joe Biden](https://sms4smile.com/quotes/author/joe-biden/) > [I will be the first black James Bond.](https://sms4smile.com/quotes/dhani-jones/i-will-be-the-first-black-james-bond/) [Dhani Jones](https://sms4smile.com/quotes/author/dhani-jones/) > ['Lakshmi' is a dance film, a musical that deals with the emotional bond between the guru and his sishya.](https://sms4smile.com/quotes/prabhu-deva/lakshmi-is-a-dance-film-a-musical-that-deals-with-the-emotional-bond/) [Prabhu Deva](https://sms4smile.com/quotes/author/prabhu-deva/) > [When blacks become humanly visible, when their true beliefs are known, their mask shatters and their symbiotic bond with whites is broken.](https://sms4smile.com/quotes/shelby-steele/when-blacks-become-humanly-visible-when-their-true-beliefs-are-known/) [Shelby Steele](https://sms4smile.com/quotes/author/shelby-steele/) > [Once are such precious people, and I wouldn't trade our bond for anything.](https://sms4smile.com/quotes/dahyun/once-are-such-precious-people-and-i-wouldn-t-trade-our-bond-for/) [Dahyun](https://sms4smile.com/quotes/author/dahyun/) > [My word is my bond.](https://sms4smile.com/quotes/anonymous/my-word-is-my-bond/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [I am honored to be a Bond girl and be a part of the Bond legacy, To star in a video game with Connery,…](https://sms4smile.com/quotes/maria-menounos/i-am-honored-to-be-a-bond-girl-and-be-a-part-of-the-bond-legacy-to/) [Maria Menounos](https://sms4smile.com/quotes/author/maria-menounos/) [Browse all 863 Bond quotes ](https://sms4smile.com/quotes/about/bond/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Manipulating the bond market is so greatly reducing the cost of capital that so far companies have been able to maintain profit margins without raising prices. 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