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Jim Cramer: Why the [Market] Has Gotten Too Gloomy

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Think that the sinking bond yields are due to tariffs?

Jim Cramer says think again.

The Treasury bond yield is inching towards 2%. Cramer tackled the sinking bonds in his morning column on Real Money. He said that he believes that the reason for the decline is the lack of demand, not the tariffs.

And, here's why:

Taking the foreign money off the table leaves you with a belief that the strong dollar and the yield differential mean nothing, even though you have to believe that there is as least some part of this incredible rally fueled by foreigners.

Which leaves, of course, a lack of demand. There simply isn't belief in the future, no matter what, to warrant borrowing -- and that's the real reason for the decline.

"The problem is, is that the market is interpreting the interest rate decline as no confidence in the future. No confidence in the future means no expansion. I find it so antithetical to the facts that it drives me crazy. That's why I think that everyone has gotten a little too gloomy," explained Cramer. 

Related.Jim Cramer: Sinking Bond Yields Disguise the Real Reason for the Decline

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