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Tag Archives: interest rates
What Interest Rate Triggers The Next Crisis?
What Interest Rate Triggers The Next Crisis? The Ten-year U.S. Treasury note yields 1.61%. 10-year high-quality corporate bonds yield 2.09%. The rate on a 30-year mortgage is 3.05%. Despite recent increases, interest rates are hovering near historic lows. We do not use the word “historic” lightly. By “historic,” we refer to the lowest levels since […]
THE WOLF STREET REPORT: Market Manias Galore, But Long-Term Interest Rates Smell a Rat
THE WOLF STREET REPORT: Market Manias Galore, But Long-Term Interest Rates Smell a Rat These manias and the rising long-term yields are on collision course. (You can also download THE WOLF STREET REPORT wherever you get your podcasts). wolfstreet, wolf street report, wolf richter, long-term interest rates, interest rates, financial markets
New Normal: High Unemployment, Near-Zero Interest Rates and Out of Control Inflation
New Normal: High Unemployment, Near-Zero Interest Rates and Out of Control Inflation Since the pandemic began a year ago, the term “new normal” has become part of the American lexicon. Not “new” as in better or improved. But rather “new” as in contrast to the way things used to be. Much of the mainstream discussion argues that […]
What Happens to the Markets If Long-Term Interest Rates Double from Here? Did Low Interest Rates Boost Auto Sales? Do These Covid Markets Make Any Sense?
What Happens to the Markets If Long-Term Interest Rates Double from Here? Did Low Interest Rates Boost Auto Sales? Do These Covid Markets Make Any Sense? Wolf Richter on This Week in Money, by HoweStreet.com:
Crazy days for money
Crazy days for money This article anticipates the end of the fiat currency regime and argues why its replacement can only be gold and silver, most likely in the form of fiat money turned into gold substitutes. It explains why the current fashion for cryptocurrencies, led by bitcoin, are unsuited as future mediums of exchange, […]
Fed’s Near-Zero Rates Might Sound Good (Until This Happens)
Fed’s Near-Zero Rates Might Sound Good (Until This Happens) In some cases, the idea of a “near-zero interest rate” is a good thing. For example, if you qualify for 0% interest when you buy a car, you save money. But it’s much different when your retirement savings depends on getting a return on investment (ROI). In that case, near-zero […]
Interest Rate Tremors May Spell Disaster for the Dollar
Interest Rate Tremors May Spell Disaster for the Dollar Banksy As the U.S. plunges further into debt beyond a staggering $27 trillion, the dollar’s time is running out. But the problem is much deeper than that. With inflation on the rise, and long-term bond yields rising in concert with massive debt, some disturbing scenarios could develop that spell trouble for […]
For Stocks & Bonds, Upside Surprise of Inflation and Interest Rates “Could Prove Nasty”: Dudley
For Stocks & Bonds, Upside Surprise of Inflation and Interest Rates “Could Prove Nasty”: Dudley Five reasons to “worry about faster inflation.” It’s “a greater danger precisely because it’s no longer perceived as such.” “Given how completely financial markets have come to expect low inflation and interest rates, and how much support those expectations are […]
What the Great Reset Architects Don’t Want You To Understand About Economics
What the Great Reset Architects Don’t Want You To Understand About Economics It shouldn’t come as a surprise that the Vice President of the World Bank Carmen Reinhardt recently warned on October 15 that a new financial disaster looms ominously over the horizon with a vast sovereign default and a corporate debt default. Just in the past […]
BC Hydro Bets on Interest Rates — and Loses $1 Billion
BC Hydro Bets on Interest Rates — and Loses $1 Billion A hedging program was supposed to protect the corporation from rising rates. Instead, it’s creating major liabilities. The Peace River was dammed and sent through these diversion tunnels this week to allow work on Site C to continue in the dry riverbed. Photo via BC […]
The ‘new normal’ has been postponed (and probably canceled)
The ‘new normal’ has been postponed (and probably canceled) There remains a hope that once we get past the economic and social effects of the pandemic, all of us will be able to return to something resembling normal life before the pandemic—even if it is a “new normal” marked by heightened vigilance and protection against […]
Fed’s GDP and Unemployment Projections: Who Believes Them?
Fed’s GDP and Unemployment Projections: Who Believes Them? In addition to its blather about interest rates, the Fed also made numerous economic projections. Economic Projections Please consider the Economic Projections of FOMC Participants under their individual assumptions of appropriate monetary policy, September 2020. Fed’s GDP, Unemployment, PCE Inflation Projections GDP Projection The Fed believes GDP will only […]
$65 Oil And $5000 Gold: Traders Expect Volatility In Key Commodities
$65 Oil And $5000 Gold: Traders Expect Volatility In Key Commodities The year of the pandemic put two commodities under the spotlight, but for different reasons. Gold prices hit an all-time high in August, while crude oil slipped into negative for a day in April, when demand crashed and inventories soared. Both oil and gold […]
Inflation, deflation and other fallacies
Inflation, deflation and other fallacies There can be little doubt that macroeconomic policies are failing around the world. The fallacies being exposed are so entrenched that there are bound to be twists and turns yet to come. This article explains the fallacies behind inflation, deflation, economic performance and interest rates. They arise from the modern […]
