“The reason why anyone would buy negative-yielding debt is actually pretty simple: Because they have to.”
Source: Negative rates leading to ‘day of reckoning’ fear on Wall Street
Archive for the ‘Interest rates’ Category
An economic and history lesson
10
Jul
Why a depression is the cure that ails America. Being prepared will help you ride out the inevitable.
“Artificial measures to stave off a downturn will only make it much worse.”
Source: America Needs a Good, Old-Fashioned Economic Depression
Warning signal for the economy and the stock market?
08
Jul
Investors are fleeing volatile sectors for safe havens. We saw this before in the lead-up to the financial crisis.
Source: Market driven by ‘safe’ stocks, possibly signaling slowdown ahead
Global bubblemania
06
Jul
David Stockman makes the case it’s 2007, all over again.
“Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy and el…”
Source: Here We Go Again——August 2007 Redux
Time for a breather for the roaring gold and silver markets?
04
Jul
The move in metal prices has has been spectacular. It would not surprise me that we see a correction in the weeks ahead.
“Gold rose as political turmoil following Brexit supported prices after activity in China pushed them back towards last week’s high.”
Source: Gold pushes back towards 2 year high, silver crosses $21/oz
An outstanding lesson in economics for the Federal Reserve
01
Jul
Economist Mark Thornton explains interest rates.
Source: EconomicPolicyJournal.com: In The Wall Street Journal: Mises Scholar on the Natural Interest Rate
Central bankers have lit a fuse of historic importance
29
Jun
The $11.7 trillion invested in negative-yield bonds was 12.5 percent higher than at the end of May, according to Fitch Ratings.
Source: There are now $11.7 trillion worth of bonds with negative yields
Clueless at the Federal Reserve
21
Jun
The Federal Reserve has painted itself in a box. Raising interest rates would destabilize the economy. Keeping rates well below “normal” creates more distortions in the economy. What should be done? Ending the Fed would be a good place to start so the money manipulators in DC could no longer create inflation and booms and busts. Also, making the dollar as gold should be the goal of the federal government.
Federal Reserve Chair Janet Yellen said Tuesday that the U.S. economy faces a number of uncertainties that require the Fed to proceed cautiously in raising interest rates.
Source: Yellen says uncertainties justify cautious approach – Business – NorthJersey.com