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Tag Archives: interest rates
Rate Squeeze in Vancouver & Toronto Housing Bubbles
Rate Squeeze in Vancouver & Toronto Housing Bubbles Variable-rate mortgages, the HELOC phenomenon, and new stress tests meet higher rates. The Bank of Canada raised interest rates another 25 basis points last week. It was the third time in the past six months. Rates have more than doubled in that time, going from 0.50% to […]
What Will Rising Mortgage Rates Do to Housing Bubble 2?
What Will Rising Mortgage Rates Do to Housing Bubble 2? Oops, they’re already rising. The US government bond market has further soured this week, with Treasuries selling off across the spectrum. When bond prices fall, yields rise. For example, the two-year Treasury yield rose to 2.06% on Friday, the highest since September 2008. In the […]
Our Outlook For 2018 Interest Rates to Stay Low. The Consensus View is That Europe’s Banks Are Recovering But We Are Not So Sure.
OUR OUTLOOK FOR 2018 INTEREST RATES TO STAY LOW. THE CONSENSUS VIEW IS THAT EUROPE’S BANKS ARE RECOVERING BUT WE ARE NOT SO SURE. The Interest Rate Outlook Despite their shortcomings, European banks do not seem on the verge of collapse and few commentators, analysts or policymakers think that there will be any systemic wobbles […]
The Inescapable Reason Why the Financial System Will Fail
girardatlarge.com The Inescapable Reason Why the Financial System Will Fail Credit cannot expand faster than fundamentals forever Modern finance has many complex moving parts, and this complexity masks its inner simplicity. Let’s break down the core dynamics of the current financial system. The Core Dynamic of the “Recovery” and Asset Bubbles: Credit Credit is the […]
Interest Rates Starting To Bite
Interest Rates Starting To Bite We have long held that interest rates have been so low (especially real rates) that it will take some time to reach a level for them to really matter and impact markets. The 2-year yield crossing over the S&P500 divie yield this past week for the first time in the last […]
Weekly Commentary: Chronicling for Posterity
Weekly Commentary: Chronicling for Posterity Janet Yellen’s Wednesday news conference was her final as Fed chair. Dr. Yellen has a long and distinguished career as an economist and public servant. Her four-year term at the helm of the Federal Reserve is almost universally acclaimed. History, however, will surely treat her less kindly. Yellen has been […]
Canada Home Values Hit “First Quarterly Decline since Q1 2009” as Household Debt Binge Hits New High
Canada Home Values Hit “First Quarterly Decline since Q1 2009” as Household Debt Binge Hits New High How exposed are over-indebted household to rising interest rates? Household debt in Canada rose to a new record of C$2.11 trillion in the third quarter 2017, up 5.2% from a year ago and up 10.7% from two years […]
How Fed Rate Hikes Impact US Debt Slaves
How Fed Rate Hikes Impact US Debt Slaves But savers are still getting shafted. Outstanding “revolving credit” owed by consumers – such as bank-issued and private-label credit cards – jumped 6.1% year-over-year to $977 billion in the third quarter, according to the Fed’s Board of Governors. When the holiday shopping season is over, it will […]
Doug Noland: There Will Be No Way Out When This Market Bubble Bursts
Doug Noland: There Will Be No Way Out When This Market Bubble Bursts Financial assets will become toxic to hold This week Doug Noland joins the podcast to discuss what he refers to as the “granddaddy of all bubbles”. Noland, a 30-year market analyst and specialist in credit cycles, currently works at McAlvany Wealth Management and […]
Fed Tightens, “and so far, Nothing Has Blown Up”
Fed Tightens, “and so far, Nothing Has Blown Up” Gundlach frets about bonds during QE unwind, rate hikes, tax cuts, and rising deficits. “A tax cut will reduce revenue and it will grow the deficit and therefore, it will probably grow bond supply, and perhaps boost economic growth,” DoubleLine Capital CEO Jeffrey Gundlach said on […]
The Cost Basis of our Economy is Spiraling Out of Control
The Cost Basis of our Economy is Spiraling Out of Control What will it take to radically reduce the cost basis of our economy? If we had to choose one “big picture” reason why the vast majority of households are losing ground, it would either be the stagnation of income or the spiraling out of […]
Weekly Commentary: China Initiating a Global Bear Market?
Weekly Commentary: China Initiating a Global Bear Market? Chair Yellen is widely lauded for her accomplishments at the Federal Reserve. For the most part, her four-year term at the helm of the Fed boils down to four (likely soon to be five) little rate hikes over 24 months. Most lavishing praise upon Janet Yellen believe […]
Deflation Must Be Embraced
DEFLATION MUST BE EMBRACED There are two problems with understanding deflation: it is ill defined, and it has a bad name. This article puts deflation into its proper context. This is an important topic for advocates of gold as money, who will be aware that sound money, in theory, leads to lower prices over time […]
