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Tag Archives: interest rates
The Eurozone Sovereign Debt Crisis and a Potential OTC Interest Rate Derivatives Crisis
THE EUROZONE SOVEREIGN DEBT CRISIS AND A POTENTIAL OTC INTEREST RATE DERIVATIVES CRISIS Summary After considering the alternative scenarios of Grexit, debt renegotiation, transferring of debt, a deflationary spiral and so on, it is concluded that this will either result (ceteris paribus) in an increase in sovereign debt yields or a decrease in the volume […]
The FOMC Decision, US Money Supply and the Economy
The FOMC Decision, US Money Supply and the Economy Giving the Kremlinologists Something to Do As is well known by now, on Wednesday the US central monetary planning bureau finally went through with its threat to hike the target range for overnight bank lending rates from nothing to almost nothing. Photo credit: Luca Brenta The very […]
Doomsayers are wrong (so far) as U.S. Fed raises rates: Don Pittis
Doomsayers are wrong (so far) as U.S. Fed raises rates: Don Pittis Breaking the ice on frozen rates has calmed markets, not roiled them U.S. Federal Reserve chair Janet Yellen oozed confidence as she announced a hike in interest rates yesterday. Markets responded in kind. (Reuters) “Remember, we have very low rates and we’ve made […]
On US Interest Rates
On US Interest Rates The first US interest rate increase since June 2006 is a pivotal moment for the global economy, launching what Mohamed El-Erian, Chief Economic Adviser at Allianz, calls the “great policy divergence,” with repercussions in every region and financial market. The impact will be particularly powerful in emerging countries, where currencies are vulnerable to […]
Why the Fed Is WRONG About Interest Rates
Why the Fed Is WRONG About Interest Rates Richard Werner – an economics professor and the creator of quantitative easing – says that it’s a myth that interest rates drive the level of economic activity. The data shows that the opposite is true: rates lagthe economy. Economics prof Steve Keen – who called the Great Recession before […]
A Free Market in Interest Rates
A Free Market in Interest Rates The Corn Control Agency Unless you’re living under a rock, you know that we have an administered interest rate. This means that the bureaucrats at the Federal Reserve decide what’s good for the little people. Then they impose it on us. In trying to return to freedom, many people […]
Today Will Be a Watershed Moment for Financial Markets
Today Will Be a Watershed Moment for Financial Markets I believe the world is at the greatest financial market inflection point since 1929. One that calls for a basic truism: You can make a profit in a rising market if you are long. And you can profit in falling market if you are short. The […]
U.S. interest rate hike will be tough medicine for indebted Canada
U.S. interest rate hike will be tough medicine for indebted Canada America has had its housing market ‘correction,’ ours is yet to come Federal Reserve Chair Janet Yellen at the Economics Club of Washington earlier this month. She is widely expected to raise the Feds main interest rate today, for the first time in nine […]
Grant Williams: The End Of The Road
Grant Williams: The End Of The Road The Fed is finally boxed in Grant Williams returns this week to set the context for this week’s FOMC meeting, where the Federal Reserve is widely expected to hike interest rates for the first time in nearly a decade. To say he is very skeptical of the Fed’s ability […]
Paper Money Versus the Gold Standard
Paper Money Versus the Gold Standard We are living in a time that can only be considered monetary chaos. The U.S. Federal Reserve has manipulated key interest rates down to practically zero for the last six years, and expanded the money supply in the banking system by $4 trillion dollars over that time. And with […]
December 14th To 18th: A Week Of Reckoning For Global Stocks If The Fed Hikes Interest Rates?
December 14th To 18th: A Week Of Reckoning For Global Stocks If The Fed Hikes Interest Rates? Are we about to witness widespread panic in the global financial marketplace? This week is shaping up to be an absolutely critical week for global stocks. Coming into December, more than half of the 93 largest stock market […]
Fed’s Rocket Ship Turns Hoverboard
Fed’s Rocket Ship Turns Hoverboard Over the past year, while the U.S. economy has continually missed expectations, Federal Reserve Chairwoman Janet Yellen has assured all who could stay awake during her press conferences that it was strong enough to withstand tighter monetary policy. In delivering months of mildly tough talk (with nothing in the way […]
The Fed’s Painted Itself Into The Most Dangerous Corner In History—–Why There Will Soon Be A Riot In The Casino
The Fed’s Painted Itself Into The Most Dangerous Corner In History—–Why There Will Soon Be A Riot In The Casino The chart below crystalizes why the Fed is stranded in a monetary no man’s land. By the time of next week’s meeting the federal funds rate will have been pinned at about 10 bps, or effectively zero, […]
Stephen Poloz Considers Negative Interest Rates
Stephen Poloz Considers Negative Interest Rates Price controls on interest rates are the latest fad. A 100-year-trend that’s picked up steam in the last 15 years, where central banks have been confident enough to blatantly ignore the supply and demand for loans and keep rates as low as possible. How low can you go? For […]
The FED v Bias & Prejudice
The FED v Bias & Prejudice COMMENT: If the Fed is so smart and understands the problem with low/negative interest rates, then why didn’t it hike rates in September? Better yet, why didn’t they raise rates YEARS ago? The Fed has kept rates near zero for seven years but now suddenly realizes that this is a […]
