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Keyword: interestrates

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  • Fed rate hike in June ‘on the table,’ two policymakers say

    05/01/2015 5:34:31 PM PDT · by Olog-hai · 6 replies
    Reuters ^ | Fri May 1, 2015 6:06pm EDT | Ann Saphir and Jonathan Spicer
    The Federal Reserve could well raise interest rates as soon as June, two top U.S. central bankers said on Friday, so long as economic data strengthens as expected from a dismal first quarter. That view—from the hawkish-leaning chief of the Cleveland Fed and from the centrist head of the San Francisco Fed—is at odds with the view of many traders, whose bets in the interest-rate futures markets suggest they have all but discounted a June rate hike and now expect the Fed to wait until December before raising rates for the first time since 2006. The Fed has kept interest...
  • The Surging Dollar Is A Signal That A Colossal Financial Event Is Just Around The Corner

    03/13/2015 9:26:10 AM PDT · by blam · 28 replies
    BI ^ | 3-13-2015 | Mike Bird
    Mike Bird March 13, 2015 The dollar is set for its strongest quarterly strengthening since 1992, according to Bank of America, a good sign that a rate hike is around the corner. When markets expect that US interest rates will be hiked, it typically strengthens the dollar. That's because people rush to change other currencies into dollars — they can make more money in dollar-denominated investments. The higher demand for the US currency drives its value up. In the past, significant dollar gains against other currencies have pretty much happened only during periods of extreme financial or geopolitical distress. The...
  • Bank of Israel cuts rate to historic low

    02/23/2015 9:29:28 AM PST · by Olog-hai · 2 replies
    Yedioth Ahronoth News ^ | 02.23.15, 18:10 | Amnon Atad
    The Bank of Israel lowered its benchmark interest rate on Monday to an all-time low of 0.1 percent on Monday. The move came as a surprise, after 11 of 12 economists polled by Reuters had expected the central bank to stand pat. The central bank cut the rate to signal its determination to push back against the negative inflation holding down the market towards its intended annual target of one to three percent. Lowering the interest rate theoretically leads to an increase in demand within the market and helps increase prices towards the inflation target which the Bank of Israel...
  • Sweden cuts rates below zero as global currency wars spread

    02/12/2015 3:34:09 PM PST · by NRx · 30 replies
    The Telegraph ^ | 12 Feb 2015 | Ambrose Evans-Pritchard
    Sweden has cut interest rates below zero and launched quantitative easing to fight deflation, becoming the latest Scandinavian state to join Europe’s escalating currency wars. The Riksbank caught markets by surprise, reducing the benchmark lending rate to minus 0.10pc and unveiled its first asset purchases, vowing to take further action at any time to stop the country falling into a deflationary trap. The bank presented the move as precautionary step due to rising risks of a “poorer outcome abroad” and the crisis in Greece. Janet Henry from HSBC said the measures are clearly a “beggar-thy neighbour” manoeuvre to weaken the...
  • Feel That? It's The Chill Of Deflation

    02/09/2015 10:55:30 AM PST · by blam · 24 replies
    TMO ^ | 2-9-2015 | Chris Mayer
    February 08, 2015 Chris Mayer writes: That chill in the air? This is what deflation feels like... Right now, the 10-year U.S. Treasury pays just 1.8%... oil is $50 a barrel... commodity prices drift near to chilling lows... and the dollar is near multiyear highs. These are all deflationary trends. What deflation means for you as an investor is what I want to explore today. As an investor in stocks, there is a safe path through a deflationary Ice age. I'll get to that in a moment. But first... what exactly is deflation? The economic word deflation, says the Oxford...
  • GUNDLACH: The Consensus Is Wrong — Interest Rates Could Sink To Levels We Haven't Seen In Decades

    01/03/2015 6:26:23 AM PST · by blam · 23 replies
    BI ^ | 1-3-2015 | Sam Ro
    Sam Ro January 3, 2015January 2015 is looking a lot like January 2014. The US economy has been improving, the unemployment rate has been coming down, and the Federal Reserve has been increasingly prepping the world for tighter monetary policy. For most bond market experts, all that means US interest rates are going to head up, especially considering the fact that rates have been falling for three decades. But Jeff Gundlach is not like most bond market experts. A year ago this month, Gundlach, the head of DoubleLine Funds, went contrarian and correctly predict rates would fall. In a new...
  • China unexpectedly cuts rates to support economy

    11/21/2014 11:07:52 AM PST · by Olog-hai · 6 replies
    Associated Press ^ | Nov 21, 2014 12:24 PM EST | Joe McDonald
    China’s central bank unexpectedly slashed interest rates on Friday to re-energize the world’s No. 2 economy, joining a growing list of major economies that are trying to encourage growth in the face of a global slowdown. On top of the rate cut, Chinese authorities promised to inject credit into the financial system if needed. Meanwhile, the president of the European Central Bank said Friday he was ready to step up stimulus for the 18-country eurozone economy, whose performance continues to disappoint. And Japan’s government this week delayed a tax increase after the country slipped back into recession. News of China’s...
  • Interest Rates Cannot Rise and Here’s Why…

    11/04/2014 11:42:50 AM PST · by SeekAndFind · 25 replies
    First Rebuttal ^ | 11/4/2014 | Thad Beversdorf
    I wrote an article recently over at Voices of Liberty that lays out the very dire picture for those of us who have yet to retire. The gist of the article is that the Fed has effectively robbed the retired class of any hope for having enough of a nest egg to live off through the end of their lives if they want to retire at 65. Some may argue well this past 10 years has just been an anomaly of low interest rates but they will come back i.e. normalize to higher levels here in the next couple...
  • The Wrath of Draghi: First German Bank Hits Savers with ‘Negative Interest Rates’

    11/01/2014 2:24:54 PM PDT · by aimhigh · 17 replies
    Wolf Street ^ | 10/30/2014 | Wolf Richter
    Deutsche Skatbank, a division of VR-Bank Altenburger Land, which was founded in 1859, is not the biggest bank in Germany, but it’s the first bank to confirm what German savers have been dreading for a while: the wrath of Draghi. Retail and business customers with over €500,000 on deposit as of November 1 will earn a “negative interest rate” of 0.25%. In less euphemistic terms, they have to pay 0.25% per annum to the bank for the privilege of handing the bank their hard-earned money or their business cash. Inflation has had a similar effect in the zero-interest-rate environment that...
  • Dollarpocalypse Now

    10/31/2014 5:33:11 PM PDT · by Sean_Anthony · 13 replies
    Canada Free Press ^ | 10/31/14 | Anthony J. Tarquinto
    Federal Reserve is losing control. They cannot keep interest rates low forever. Nobody can. And when rates rise, the results will be devastating In the 1979 film Apocalypse Now, Colonel Walter E. Kurtz (played by Marlon Brando) utters, “the horror, the horror,” on his deathbed. He might as well have been talking about the U.S. dollar. Central banks maintain a nation’s currency. As the world’s largest central bank, the United States Federal Reserve, or “Fed,” sets the rate of interest in worldwide lending. It also has major influence on monetary policy. For instance, the Fed’s $85 billion per month in...
  • A New Interest Rates Record Is Set... And It Is Foreboding

    08/17/2014 9:08:33 PM PDT · by blam · 20 replies
    Market Oeracle ^ | 8-17-2014 | Daily Wealth
    August 17, 2014 DailyWealth Dr. Steve Sjuggerud writes: A new record was set in Germany yesterday... The interest rate on a 10-year government bond in Germany fell below 1%. This number is shocking... Interest rates have never been this low in German history. What does it mean? Why would people agree to lend money to a government for 10 years with almost no return on that money? What is the message that we should take from this? Aren't things supposed to be getting back to "normal"? And doesn't "normal" mean something like this: By 2020, the Federal Reserve has short-term...
  • US banks braced for large deposit outflows

    08/04/2014 5:57:27 PM PDT · by Lorianne · 20 replies
    CNBC/Financial Times ^ | 31 Jul 2014 | Tracy Alloway and Camilla Hall
    US banks are steeling themselves for the possibility of losing as much as $1tn in deposits as the Federal Reserve reverses its emergency economic policies and raises interest rates. JPMorgan Chase, the biggest US bank by deposits, has estimated that money funds may withdraw $100bn in deposits in the second half of next year as the Fed uses a new tool to help wind down its asset purchase programme and normalise rates. Other banks including Citigroup, Bank of New York Mellon and PNC Financial Services have also said they are trying to gauge the potential effect of the Fed's exit...
  • Clash over campus cards

    07/23/2014 3:52:07 AM PDT · by Cincinatus' Wife · 7 replies
    The Hill ^ | July 23, 2014 | Benjamin Goad and Megan R. Wilson
    The issue plays into the president’s agenda of protecting students and providing an affordable college education — issues the administration also hopes will drive Democrats to the polls in November. The financial industry is clashing with the Obama administration over forthcoming regulations that are intended to protect college students from excessive bank fees. Still in its early stages, the proposal would extend the Education Department’s regulatory authority to deposit accounts opened under arrangements between universities and financial firms that adopt “campus cards,” critics say. The agency reasons that its jurisdiction includes those accounts, since they often serve as receptacles for...
  • ECB hurls cash at sluggish EU economy, seeks to force bank lending [Banks charge for deposits]

    06/05/2014 7:11:56 AM PDT · by SeekAndFind · 6 replies
    Reuters ^ | 06/05/2014 | BY JOHN O'DONNELL AND EVA TAYLOR
    The European Central Bank launched a raft of measures on Thursday to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds. The ECB cut all its main rates to record lows in a drive to fight off the risk of Japan-like deflation and bring down the euro's exchange rate. For the first time, it will charge banks 0.10 percent for parking funds at the central bank overnight. It stopped short of large-scale asset purchases known as quantitative easing for now, but ECB President Mario...
  • Interest Rates Jump After Weak Bond Auction

    05/08/2014 11:15:21 AM PDT · by PoloSec · 7 replies
    Business Insider ^ | May 8 2014 | Sam Ro
    Long-term bonds are tumbling and interest rates are spiking after a 30-year Treasury bond auction saw weak demand. According to Bloomberg, 30-year Treasury bonds sold at a yield of 3.440%, which was much higher than the 3.392% expected by analysts. The bid-to-cover ratio, a measure of demand, was low at 2.09. Analysts were looking for a ratio of closer to 2.36. The results of the auction came out at 1:01 p.m. ET, which was when prices plunged.
  • A fading middle-class perk: lower mortgage rates

    04/25/2014 9:25:04 AM PDT · by Olog-hai · 21 replies
    Associated Press ^ | Apr 25, 2014 12:06 PM EDT | Josh Boak
    For three decades, the U.S. middle class enjoyed a rare financial advantage over the wealthy: lower mortgage rates. Now, even that perk is fading away. Most ordinary homebuyers are paying the same or higher rates than the fortunate few who can afford much more. Rates for a conventional 30-year fixed mortgage are averaging 4.48 percent, according to Bankrate. For “jumbo” mortgages—those above $417,000 in much of the country—the average is 4.47 percent. …
  • Governments Binge on Debt with Easy-Money Policies and Low Interest Rates

    03/17/2014 9:32:33 AM PDT · by Kaslin · 6 replies ^ | March 17, 2014 | Paul Dykewicz
    Confirmation that governments are squandering money on ill-advised programs fueled by the easy-money policies of central banks worldwide became all-too-evident earlier this week when a European business leader responded to a question I posed at a press briefing here in Washington, D.C.
  • U.S. regulator sues 16 banks for rigging key interest rate

    03/14/2014 12:31:57 PM PDT · by gooblah · 14 replies
    Reuters ^ | Fri Mar 14, 2014 3:26pm EDT | By Nate Raymond
    (Reuters) - The Federal Deposit Insurance Corporation sued 16 of the world's largest banks on Friday, accusing them of colluding to suppress interest rates. The lawsuit, filed in the federal district court in New York, was the latest to accuse financial institutions of conspiring to manipulate Libor, or the London Interbank Offered Rate. The FDIC said the defendants' conduct caused substantial losses to 38 banks that the U.S. regulator had taken into receivership since 2008, including Washington Mutual Bank and IndyMac Bank.
  • Remember When the White House Was Just 'Vulgar and Abusive'?

    02/23/2014 5:18:27 AM PST · by Kaslin · 6 replies ^ | February 23, 2014 | John Ransom
    Catball wrote:Can anybody out there tell me the difference between the tea party and the taliban. No this is not a joke. Seriously, the tea party wants to destroy the american government. The t-party crew walked into a church and killed a doctor because they like what he was doing. That was in Wichita,KS. The t-party does want to dismantle our government. They don't want women to have any rights. M. Bachmann said you should be submissive and do whatever they want you to do. They want rich white men & women to take over the country. They don't care...
  • Banks Warn Fed They May Have To Start Charging Depositors

    11/24/2013 8:57:51 PM PST · by blam · 17 replies
    Zero Hedge ^ | 11-24-2013 | Tyler Durden
    Banks Warn Fed They May Have To Start Charging Depositors Tyler Durden 11/24/2013 15:24 -0500 The Fed's Catch 22 just got catchier. While most attention in the recently released FOMC minutes fell on the return of the taper as a possibility even as soon as December (making the November payrolls report the most important ever, ever, until the next one at least), a less discussed issue was the Fed's comment that it would consider lowering the Interest on Excess Reserves to zero as a means to offset the implied tightening that would result from the reduction in the monthly flow...
  • Obama to nominate Yellen as Bernanke successor

    10/08/2013 5:32:26 PM PDT · by Olog-hai · 8 replies
    Associated Press ^ | Oct 8, 2013 8:23 PM EDT | Martin Crutsinger and Jim Kuhnhenn
    President Barack Obama will nominate Federal Reserve vice chair Janet Yellen to succeed Ben Bernanke as chairman of the nation’s central bank, the White House said Tuesday. Yellen would be the first woman to head the powerful Fed, taking over at a pivotal time for the economy and the banking industry. … Yellen emerged as the leading candidate after Lawrence Summers, a former Treasury secretary whom Obama was thought to favor, withdrew from consideration last month in the face of rising opposition. Yellen, 67, would likely continue steering Fed policy in the same direction as Bernanke. A close ally of...
  • Obama talks Fed choices with lawmakers

    07/31/2013 6:56:31 PM PDT · by Ernest_at_the_Beach · 2 replies
    Marketwatch ^ | July 31, 2013, 3:17 p.m. EDT | Greg Robb, MarketWatch
    Former Fed vice chair Kohn specifically mentioned by presidentWASHINGTON (MarketWatch) -- President Barack Obama suggested he has more than just two candidates under consideration to replace Fed Chairman Ben Bernanke, lawmakers said Wednesday after meeting with the president. The conventional wisdom had been that the race for the job had narrowed down to former Treasury Secretary Larry Summers and Fed Vice Chair Janet Yellen. Obama went up to Capitol Hill for closed-door meetings with Senate and House Democrats to discuss his new push to spur Congress to act on measures to boost the economy. But lawmakers wanted to talk about...
  • Interest rates on federally subsidized college student loans officially double

    07/02/2013 7:56:33 AM PDT · by SeekAndFind · 18 replies
    Hotair ^ | 07/02/2013 | Erika Johnsen
    In the summer heat of the election last year, Congress passed a one-year extension on keeping the interest rate for federally subsidized Stafford loans for college students at the artificially low rate of 3.4 percent — and the sand finally ran out on that temporary stopgap today, hiking the rate up to 6.8 percent. Republicans have been proposing to link students loan rates to the freer financial-market benchmarks instead of allowing Congress to arbitrarily determine what they deem to be an appropriate rate, while Democrats are looking to keep the interests rates as low as they in their infinite wisdom...
  • Soaring Mortgage Rates Are Going To Make It Far More Difficult To Buy Or Sell A House Again

    06/27/2013 7:54:43 PM PDT · by SeekAndFind · 24 replies
    TEC ^ | 06/27/2013 | Michael Snyder
    <p>Did you actually think that mortgage rates were going to stay at all-time lows forever? Federal Reserve Chairman Ben Bernanke was able to grossly distort the market for a while by buying up massive amounts of government bonds and mortgage-backed securities, but there was no way in the world that the market was going to stay that distorted forever. It simply does not make sense to give American families 30 year mortgages at a fixed interest rate of less than four percent when the real rate of inflation is somewhere around eight to ten percent and the mortgage delinquency rate in the United States is 9.72 percent. If we actually did have "free markets" and they were behaving rationally, mortgage rates would be far, far higher. Well, now that the Fed has indicated that they are going to be starting to "taper" QE at some point, bond yields have skyrocketed and this is rapidly pushing up mortgage rates. According to Freddie Mac, we just witnessed the largest weekly increase in mortgage rates in 26 years. Sadly, this is only just the beginning. Unless the Federal Reserve intervenes, mortgage rates are going to continue to try to revert to normal.</p>
  • The 441 TRILLION Dollar Interest Rate Derivatives Time Bomb

    06/24/2013 8:09:18 PM PDT · by blam · 33 replies
    TEC ^ | 6-24-2013 | Michael Snyder
    The 441 TRILLION Dollar Interest Rate Derivatives Time Bomb By Michael Snyder June 24th, 2013The Derivatives Time BombDo you want to know the primary reason why rapidly rising interest rates could take down the entire global financial system? Most people might think that it would be because the U.S. government would have to pay much more interest on the national debt. And yes, if the average rate of interest on U.S. government debt rose to just 6 percent (and it has actually been much higher in the past), the federal government would be paying out about a trillion dollars a...
  • Verbosity of Money (What if instead of spooking the markets, Bernanke just said nothing?)

    06/24/2013 7:12:12 AM PDT · by SeekAndFind · 5 replies
    New York Sun ^ | 06/24/2013 | The Editors
    The debacle ignited by the Federal Reserve this week invites this question: What would have happened had Chairman Bernanke refrained from saying anything? He held on Wednesday one of his press conferences, announcing that, as the Associated Press put it, the Fed would likely slow its $85 billion-a-month program later this year and end it next year if the economy continued to strengthen. The stock market collapsed, and the value of the dollar soared — to more than a 1,300th of an ounce of gold at last check — and alarm is spreading. Well, let it not be said that...
  • U.S. Treasury Bond Market Implosion Has Officially Begun

    06/21/2013 10:31:27 AM PDT · by blam · 26 replies
    Market Oracle ^ | 6-21-2013 | Graham Summers
    U.S. Treasury Bond Market Implosion Has Officially Begun Interest-Rates / US Bonds June 21, 2013 - 06:02 PM GMT By: Graham Summers The QE Infinite parade officially ended yesterday when Bernanke hinted at tapering QE later this year or in mid-2014. I first warned about this in mid-May writing, "If Bernanke is going to step down (as hinted by his decision to skip out on the Jackson Hole meeting) he’s not going to want to leave with the Fed going at QE 3 and QE 4 full throttle. Instead his best bet would be to take his foot off the...
  • EL-ERIAN: The Fed (Bernanke) Better Be Right About The Economy

    06/19/2013 5:14:16 PM PDT · by blam · 7 replies
    Business Insider ^ | 6-20-2013 | Mohamed El-Erian
    EL-ERIAN: The Fed Better Be Right About The Economy Mohamed El-Erian, ContributorJune 20, 2013REUTERS/Frank Polich Virtually every segment of the fixed income, equity and commodity markets sold off viciously this afternoon on the back of the Fed statement and Chairman Ben Bernanke’s subsequent remarks. In the process, liquidity evaporated in certain places causing even more disorderly price moves. The immediate trigger for this afternoon’s market debacle was heightened concern that the Fed intends to reduce its support of the economy, undermining the markets’ notion of the “central bank put.” And in reacting to signs that the Fed may gradually take...

    06/19/2013 1:40:46 PM PDT · by blam · 43 replies
    Business Insider ^ | 6-19-2013 | Sam Ro
    STOCKS CRUMBLE AND RATES SURGE AFTER BERNANKE SPEAKS: Here's What You Need To Know Sam Ro June 19, 2013 It's the day everyone's been waiting for: Fed day. First, the scoreboard: • Dow: 15,112.1 -206.0 -1.3% • S&P 500: 1,628.9 -22.8 -1.3% • NASDAQ: 3,443.2 -38.9 -1.1% And now, the top stories: • The Federal Reserve wrapped up its two-day Federal Open Market Committee (FOMC) meeting and published its market-moving statement and updated economic forecasts at 2:00 p.m. ET. • The big takeaways were that the Committee saw "further improvement" in the labor market and said downside risks to the...
  • Did You Blow Your Once-In-A-Generation Chance To Buy A Home?

    05/29/2013 1:37:12 PM PDT · by blam · 21 replies
    Business Insider ^ | 5-29-2013 | Matthew Boesler
    Did You Blow Your Once-In-A-Generation Chance To Buy A Home? Matthew Boesler May 29, 2013, 11:09 AM The U.S. housing market crash of 2007-2008 presented a big opportunity for those in the market to buy a home. Mortgage rates lurched lower, continuing their downward trajectory to historic lows reached in late 2012. And, of course, home prices came way down. Here are mortgage rates. And here are home prices. The combination has propelled the "Housing Affordability Index" published by the National Association of Realtors to all-time highs. Note from NAR's website: To interpret the indices, a value of 100 means...
  • Cash And Tarry: Mortgage Applications Plunge At Fastest Rate Since 2009

    05/29/2013 7:14:03 AM PDT · by blam · 8 replies
    Zero Hedge ^ | 5-29-2013 | Tyler Durden
    Cash And Tarry: Mortgage Applications Plunge At Fastest Rate Since 2009 Tyler Durden 05/29/2013 09:47 -0400 In the 'old normal' a spike in interest rates would have sparked an avalanche of 'rational' home-buyers and refinancers to apply for mortgages for 'fear' of the 'never-to-be-seen-again' rates disappearing. It seems, however, courtesy of a Bernanke-trained market, that this surge in rates has pushed many to the sidelines (mortgage applications slipped 8.8% WoW and -23% in the last 3 weeks), we presume waiting for the omnipotent-one to save the day yet again. The year-to-date shift in mortgage applications is now the worst since...
  • Negative Real Interest Rates Fuel Yet Another Housing Bubble

    05/09/2013 8:50:05 AM PDT · by SeekAndFind · 8 replies
    Townhall ^ | 05/09/2013 | Mike Shedlock
    It's easy to spot a Fed-sponsored housing bubble if you look in the right places. The best place to start is an analysis of price inflation as measured by the BLS as compared to a CPI-variant that takes actual housing prices into consideration instead of rent. This is a followup to my post Dissecting the Fed-Sponsored Housing Bubble; HPI-CPI Revisited; Real Housing Prices; Price Inflation Higher than Fed Admits. Data for the following charts is courtesy of Lender Processing Services(LPS), Specifically the LPS Home Price Index (HPI). The charts were produced by Doug Short at Advisor Perspectives. Anecdotes on the...
  • GUNDLACH: Anyone Who Says Interest Rates Will Rise Soon Is 'Absolutely Wrong'

    05/03/2013 11:10:03 AM PDT · by blam · 2 replies
    TBI ^ | 5-302013 | Lance Roberts, Street Talk Live
    GUNDLACH: Anyone Who Says Interest Rates Will Rise Soon Is 'Absolutely Wrong' Lance Roberts, Street Talk LiveMay 3, 2013, 10:52 AMJeffry Gundlach In the continuing series of reports from the 10thannual Strategic Investment Conference, presented Altegris Investments and John Mauldin, the question of why you should own bonds was answered by Jeff Gundlach who is the CEO and CIO of Double Line. Why own bonds? I have been presented with the question twice in my career. The first time was in the 90’s when bonds and stocks were highly correlated. If stocks rose, bond prices fell, and vice versa. Therefore,...
  • The Real Danger Of The Fed's Easy Monetary Is Not The Risk Of Hyperinflation

    02/21/2013 4:40:00 PM PST · by blam · 4 replies
    TBI ^ | 2-21-2013 | Comstock Partners
    The Real Danger Of The Fed's Easy Monetary Is Not The Risk Of Hyperinflation Comstock PartnersFebruary 21, 2013, 2:56 PMThe Fed's current attempt to control long term rates, "QE to infinity", is based on the hope that by providing cheap money, banking and financial firms will lend and thereby stimulate the economy. This would be a sound plan if the problem with the US economy was a shortage of credit. With corporations holding back cash and depending on productivity gains to drive earnings, the typical recovery scenario where the private sector borrows money for investment and drives job growth and...
  • United States the Biggest Money Printing Loser (Peter Schiff)

    02/03/2013 6:23:20 AM PST · by blam · 7 replies
    TMO ^ | 2-3-2013 | Peter Schiff
    United States the Biggest Money Printing Loser Interest-Rates / US Interest RatesFebruary 02, 2013 - 10:46 AM GMT By: Peter Schiff In Switzerland, it's not just the clocks that are cuckoo. Over the past four years Swiss politicians and central bankers have gone on an unprecedented buying spree of foreign exchange reserves. In 2012, their cache swelled to as much as $420 billion worth of various currencies, primarily the euro. This figure is a seven-fold increase since 2008 and equates to 70% of the country's annual GDP. The sum translates to $200,000 per family of four, enough to keep the...
  • The Ticking Trillion Dollar Debt Bomb

    01/18/2013 4:42:25 PM PST · by blam · 3 replies
    The Market Oracle ^ | Graham Summers
    The Ticking Trillion Dollar Debt Bomb Politics / US DebtJan 18, 2013 - 08:41 AM By: Graham Summers Since the EU Crisis went into overdrive in 2010, EU politicians have largely resorted to political posturing rather than implementing any actual financial solutions to the EU’s debt and banking crisis. To clarify that statement, we view a “real solution” as one that A) cleared bad debts from the system, B) brought debt levels down to manageable levels, and C) got the troubled country’s economy back on track. By way of example, real solutions would involve outright debt defaults, bank failures, and...
  • Economic Outlook for 2013: ZIRP, Zombies, and the Japanization of the American Economy

    01/12/2013 10:50:43 AM PST · by SeekAndFind · 2 replies
    Townhall ^ | 01/10/2013 | Dr. Mark Hendrickson
    I recently indulged in some wistful, year-end nostalgia, but now that 2013 is underway, let’s turn our attention to a time more crucial to our well-being: the future in which we will live. Forecasts for sluggish economic growth are common. Investment superstars and gurus such as Bill Gross of PIMCO and Jeremy Grantham of GMO, and researchers such as Dr. Robert Gordon of the National Bureau of Economic Research, all have predicted anemic growth for the next several years. With the caveat that when too many “expert” opinions agree, the resulting consensus can be spectacularly wrong, I agree with the...
  • KRUGMAN: This Is The Chart That Debunks What Everyone Says About The National Debt

    11/25/2012 2:35:18 PM PST · by blam · 46 replies
    TBI ^ | Joe Weisenthal
    KRUGMAN: This Is The Chart That Debunks What Everyone Says About The National Debt Joe WeisenthalNov. 25, 2012, 11:05 AMPaul Krugman posts a simple chart that makes a profound point. It compares the yield on UK debt vs. US debt. What should stand out for you, instantly, is that the two countries borrow at virtually identical rates, and have for years. What this should show to people is that much of the popular stories that people tell about sovereign debt is a myth. Countries that borrow in their own currencies and can "print" at will don't have default risk, so...
  • U.S. Fed QE Infinity, What Is It All About?

    10/05/2012 4:24:56 AM PDT · by blam · 9 replies
    TMO ^ | 10-5-2012 | Ellen Brown
    U.S. Fed QE Infinity, What Is It All About? Interest-Rates / Quantitative EasingOct 04, 2012 - 03:10 PM By: Ellen Brown QE3, the Federal Reserve’s third round of quantitative easing, is so open-ended that it is being called QE Infinity. Doubts about its effectiveness are surfacing even on Wall Street. The Financial Times reports: Among the trading rooms and floors of Connecticut and Mayfair [in London], supposedly sophisticated money managers are raising big questions about QE3 — and whether, this time around, the Fed is not risking more than it can deliver. Which raises the question, what is it intended...
  • Britain is following Argentina on the road to ruin [sounds like the U.S.]

    10/02/2012 1:11:17 PM PDT · by Cincinatus' Wife · 2 replies
    Telegraph - UK ^ | October 2, 2012 | Thomas Pascoe
    A faltering economy, a coalition government torn between spending cuts and tax rises, a sinking currency, money printing and 'unconventional' monetary policy. Britain in 2012? No, Argentina in 2002. The problems faced by Argentina a decade ago and by Britain are eerily similar. In each case the government believed that through its own sophistication and trickery it could defeat a debt crisis of its own devising. In Argentina, every government action served only to make the situation worse. We are following the same path. ....At each stage, Argentina's recovery was sabotaged by the actions of its own politicians, as can...
  • Bernanke to Savers, Unemployed and Wall Street: Drop Dead.

    09/18/2012 6:16:25 AM PDT · by SeekAndFind · 6 replies
    RCM ^ | 09/18/2012 | John Tamny
    In his essential 1982 book, The Economy In Mind, the late Warren Brookes relayed a story from 1979 in which a Keynesian economist from the United States was passing through customs at JFK Airport. When the customs officer processing his entry saw his profession, he commented, "I don't know whether I should let you back in, Professor, considering what you economists have done to this country." The officers' words take on special meaning amid Fed Chairman Bernanke's latest attempt to revive the U.S. economy through monetary machinations. Blind to the horrors of his actions, this most self-unaware of economists is...
  • Why The Fed Will Not Launch QE3

    09/09/2012 2:42:29 PM PDT · by blam · 13 replies
    TMO ^ | 9-9-2012 | Tony Pallotta
    Why The Fed Will Not Launch QE3 Interest-Rates / Quantitative EasingSep 09, 2012 - 10:46 AM By: Tony Pallotta Whether the Fed decides to launch QE3 this week is far more a complex decision than they lead us to believe. It is not as simple as monitoring economic data and deciding whether to expand the balance sheet or not. Yet the Fed rarely discusses what that other criteria is in making such an important decision. The recent Jackson Hole speech by Chairman Bernanke did offer some insight to the other factors, as well as his recent Congressional testimony. And there...
  • PETER SCHIFF: We Are Sailing Right Into The Perfect Storm

    08/09/2012 7:15:56 AM PDT · by blam · 25 replies
    TBI ^ | 8-9-2012 | Sam Ro
    PETER SCHIFF: We Are Sailing Right Into The Perfect Storm Sam Ro Aug. 9, 2012, 9:26 AM Peter Schiff of Europacific Capital continues to sound the alarm on the risks of the government's mounting debt load and the Federal Reserve's low interest rate policy. Like Roubini and some other doomsayer, he employs the "perfect storm imagery." From a piece in King World News: The perfect storm is the real fiscal cliff that we’re going to go over. The real fiscal cliff is when we can’t borrow any more money because our creditors wake up to the fact that we’re no...
  • The Disastrous 40-Year Debt Supercycle Is Coming To an End

    07/20/2012 7:45:27 PM PDT · by blam · 25 replies
    TMO ^ | 7-20-2012 | Davis Stockman/Lew Rockwelly
    The Disastrous 40-Year Debt Supercycle Is Coming To an End Interest-Rates / US Debt Jul 20, 2012 - 06:20 AM By: LewRockwell David A. Stockman writes:The next Casey Research Summit, cohosted by Sprott, Inc. and titled Navigating the Politicized Economy, will feature another former White House official who is speaking out against irresponsible government spending: David Walker, the United States Comptroller General from 1998 to 2008. Joining him will be a blue-ribbon panel of other financial experts, including top market strategist Donald Coxe, legendary bond investor Lacy Hunt, and investing legends Doug Casey, Rick Rule, and Eric Sprott... and that's...
  • The Biggest Financial Scandal In History?

    07/05/2012 2:00:45 PM PDT · by blam · 6 replies
    TEC ^ | 7-5-2012 | Michael Snyder
    The Biggest Financial Scandal In History?Michael SnyderJuly 5, 2012 We always knew that the financial markets were rigged, but this is getting ridiculous. It is now being alleged that 20 major banks have been systematically fixing global interest rates for years. Barclays has already been fined hundreds of millions of dollars for manipulating Libor (the London Inter Bank Offered Rate). But Barclays says that a whole bunch of other banks were doing this too. This is shaping up to be the biggest financial scandal in history, and criminal investigations have been launched on both sides of the Atlantic. What those...
  • Bob Diamond: banks across the world were fixing interest rates in run-up to the financial crisis

    07/04/2012 11:54:14 PM PDT · by Jyotishi · 6 replies
    Belfast Telegraph ^ | Thursday, July 5, 2012 | Oliver Wright and James Moore
    Banks across the world were fixing interest rates in the run-up to the financial crisis but regulators failed to take action to stop it, the former head of Barclays claimed yesterday. Giving evidence to Parliament Bob Diamond said Barclays had raised the issue of banks ‘under-reporting’ the true amount they were having to pay to borrow money but were ignored. He declined to say that the regulators “were asleep at the wheel” but added: “There was an issue out there. (It) should have been dealt with”. But Mr Diamond denied that the Bank of England told him specifically to ‘fix’...
  • Barclays Chairman Agius Resigns

    07/02/2012 5:48:13 AM PDT · by Kartographer · 7 replies
    WSJ Online ^ | 7/2/12 | JESSICA HODGSON
    Libor rates are calculated for different currencies each day under the auspices of the British Bankers' Association, using quotes that are submitted by banks on a panel, based on the banks' estimated borrowing costs. More than $800 trillion in securities and loans are linked to Libor, including $350 trillion in swaps and $10 trillion in loans, including auto and home loans, according to the CFTC. No other banks or individuals have been charged with wrongdoing. Banks that have disclosed they are being investigated include Citigroup Inc., C +3.72% Deutsche Bank AG, DBK.XE +2.02% HSBC Holdings HBC +1.00% PLC, J.P. Morgan...
  • Barclays CEO Diamond quits over rate rigging

    07/03/2012 7:53:23 AM PDT · by Perdogg · 1 replies
    Barclays Plc Chief Executive Bob Diamond quit on Tuesday under fire from politicians and regulators, the highest-profile casualty of an interest rate-rigging scandal spanning more than a dozen big banks across the world. "The external pressure placed on Barclays has reached a level that risks damaging the franchise - I cannot let that happen," said Diamond, 61. The terms of his severance were not announced.
  • Total US Debt Soars To 101.5% Of GDP

    05/01/2012 2:40:25 PM PDT · by SatinDoll · 35 replies
    Zero Hedge ^ | 5/01/2012 | Tyler Durden
    There is nothing quite like a $70 billion debt auction settlement at the last day of a month to bring total US debt to a record $15.692 trillion, which happens to be just $600 billion shy of the $16.394 trillion debt ceiling. (and no, contrary to simple economic textbook lesson, this does not mean that the private sector just got another $70 billion in debt capacity courtesy of taxpayers, as explained here). And now that we know what Q1 GDP was at the end of Q1, or namely $15.462 trillion, it is simply math to divine that today alone total...
  • Brazil Did A Massive Rate Cut, And Suddenly The Whole World's Been Turned Upside Down

    04/18/2012 8:39:18 PM PDT · by blam · 7 replies
    TBI ^ | 4-18-2012 | Joe Weisenthal
    Brazil Did A Massive Rate Cut, And Suddenly The Whole World's Been Turned Upside Down Joe Weisenthal April 18, 2012 The big monetary policy news of the evening: Brazil's central bank has cut interest rates from 9.75% to 9.00%. That was somewhat expected, but the real news according to Reuters is the dovish tone taken by the bank, implying more rate cuts to come. Let's take a moment to pause and reflect on the state of global monetary policy. The other big rate cutter is India, which did a 50 basis point cut earlier this week. China is generally in...