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Tag Archives: interest rate policy
The Media Is Wrong About The Fed
The Media Is Wrong About The Fed Earlier this year, most of the financial stories were about how the Fed will start to raise interest rates in June. Much of this speculation was due to the lower unemployment rate, and the expectation that the U.S. economy would be in full recovery. This past Wednesday, the Fed […]
Fed chair Yellen tells Canadian homeowners to watch out: Don Pittis
Fed chair Yellen tells Canadian homeowners to watch out: Don Pittis Your mortgage rates are going up, and U.S. Fed chair is pretty specific on how much The financial analysts think they have it figured out. After listening to U.S. Federal Reserve chair Janet Yellen’s speech and her wily answers to questions from reporters, the consensus seems […]
More Central Banking Lunacy
More Central Banking Lunacy US Rate Hike: The Back-Pedaling Brigade Last week’s payrolls report was “stronger than expected”, which should actually be fairly meaningless, given how many times it will be revised and considering that it is a lagging economic indicator. However, in light of the Fed’s absurd employment mandate, it does slightly increase the […]
ZIRP——The Monetary Trick Which Killed Wages
ZIRP——The Monetary Trick Which Killed Wages Stupid Fed Trick Number 1 The Fed thinks that keeping interest rates low spurs inflation. It was probably happy to see the purported uptick in wage inflation in the just released May jobs report. It wants to see wages start rising to create a bit of inflationary pressure. That […]
What We Learned over Dinner from a Swiss Central Banker
What We Learned over Dinner from a Swiss Central Banker Dear Diary, Today… what we learned over dinner from a surprisingly smart central banker. But first, to the markets… The Dow shot up 121 Dow points yesterday, recovering most of Tuesday’s slide. In a series of business meetings Tuesday and Wednesday, we explained why nobody but us is rooting for […]
Something Smells Fishy
SOMETHING SMELLS FISHY It’s always interesting to see a long term chart that reflects your real life experiences. I bought my first home in 1990. It was a small townhouse and I paid $100k, put 10% down, and obtained a 9.875% mortgage. I was thrilled to get under 10%. Those were different times, when you […]
Free Financial Markets Are A Hoax
Free Financial Markets Are A Hoax There are no free financial markets in America, or for that matter anywhere in the Western word, and few, if any, free markets of any other kind. The financial markets are rigged by the big banks, the Federal Reserve, and the Treasury in the interests of the profits of […]
Today’s CPI Lesson: The Fed’s 2% Inflation Target Is Completely Stupid
Today’s CPI Lesson: The Fed’s 2% Inflation Target Is Completely Stupid The madness of the Fed’s pending 81 month run of zero interest rates comes down to an inflation subterfuge that has no logical or empirical grounding in real world economics. Essentially, the Keynesians who currently inhabit the Eccles Building have turned all of central banking’s anti-inflation history on its head, saying, […]
Is the Fed Going to Raise Mortgage Interest Rates?
Is the Fed Going to Raise Mortgage Interest Rates? The Interest Rate Guessing Game Seldom does a day go by without some guru offering his or her prediction on when the Fed is going to raise rates. They all come with scholarly theories supporting their prediction. It sounds like a fun game. I want to […]
Bank of America forecasts another rate cut in Canada
Bank of America forecasts another rate cut in Canada Gloomy outlook for Canadian economy sees loonie pushed to 73 cents Bank of America, one of the U.S.’s biggest banks, says the Bank of Canada may have to cut its key lending rate again later this year. Bank of America says Canada’s economy will underperform the […]
Afraid of Losing Trillions, Wall Street Fights Fed Rate Hikes
Afraid of Losing Trillions, Wall Street Fights Fed Rate Hikes Since last week, $2.1 billion worth of artworks have changed hands at Christie’s and Sotheby’s in New York. “Les Femmes d’Alger (Version ‘O’)” by Pablo Picasso sold for $179.4 million, highest price ever paid for a painting at an auction. The bronze, “L’Homme au Doigt,” […]
Stephen Poloz may let inflation creep higher: Don Pittis
Stephen Poloz may let inflation creep higher: Don Pittis Bank of Canada governor may prefer an inflation bump to the damaging impact of higher interest rates Which would you prefer, higher interest rates or higher inflation? If you are someone who actually watches what the Bank of Canada does month to month, its two per […]
High End Real Estate in Canada in Frenzied Bubble Blow-Off
High End Real Estate in Canada in Frenzied Bubble Blow-Off Throwing Caution to the Wind We have discussed the dangerous housing and consumer credit bubble in Canada in these pages on several previous occasions in some detail (see “Carney’s Legacy” and “A Tale of Two Bubbles” as examples). Since we first wrote about Canadian real […]
Why Markets Are Manic—-The Fed Is Addicted To The ‘Easy Button’
Why Markets Are Manic—-The Fed Is Addicted To The ‘Easy Button’ Later this week another Fed meeting will pass with the policy rate still pinned to the zero bound. The month of May will make the 77th consecutive month of ZIRP—–an outcome that would have been utterly unimaginable even a decade ago; and most especially not with the […]
