Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Tuesday, May 17, 2011
Raising the Roof on U.S. Debt / Interest-Rates / US Debt
By: Peter_Schiff
Today the U.S. government officially borrowed beyond its $14.29 trillion statutory debt limit. And even though the Obama administration has assured us that accounting gimmickry will allow the government to borrow for another few months, the breach has given seeming urgency to Congressional negotiations to raise the debt ceiling.
Tuesday, May 17, 2011
Pimco's Gross Talks Bond Market, U.S. Deficit and Europe Crisis / Interest-Rates / US Debt
By: Bloomberg
Bill Gross, founder and co-CIO of Pimco, appeared on Bloomberg Television's "InBusiness with Margaret Brennan" today to discuss the bond market, the U.S. deficit and Greece being the top candidate for default in Europe. Gross says that Geithner gave the U.S. debt limit "wiggle room" and that QE3 will take the form of language instead of buying.
Monday, May 16, 2011
In an Undercollateralized World / Interest-Rates / Credit Crisis 2011
By: Fred_Sheehan
The world is undercollateralized. This is the single most important feature of the 2011 economy. Sixty years ago, if assets were worth less than loans, it was possible to work our way into the black. In 1950, 59% of U.S. corporate profits were from manufacturing; 9% were from finance. The roles of manufacturing and finance have reversed. Thus, we witness the desperate attempts to forestall what cannot be prevented. Yet, the world must deleverage. Banks must write off loans. Loans to bankrupt developers and companies must be called. Living standards must fall.
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Monday, May 16, 2011
Tortured Greece is Bankrupt / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
The editor-in-chief of Handelsblatt, a leading German business newspaper, published a Letter to Georgios Papandreou, Prime Minister of Greece, called "There is a life after death"
Here are a few excerpts...
Sunday, May 15, 2011
How to Keep a Damaged Financial and Economic System Afloat? / Interest-Rates / Credit Crisis 2011
By: Bob_Chapman
The elitists who run America from behind the scenes have serious problems in trying to keep a badly damaged financial and economic system afloat. Ironically, these same characters are the ones responsible for the system and the condition that it is in today. It is not only confined to the US, but it prevails in England, Europe and other countries as well. Central bankers are all in constant touch with each other to employ tactics that will extend the current system in the hope that something they are doing will turn into at least a temporary solution. The US maintains virtually zero interest rates and floods the economy with money and credit. The European Central Bank, the ECB, raises interest rates, but continues injecting money and credit into the system. In Europe the higher interest rates are supposed to offset the inflation caused by the increase in money and credit.
Sunday, May 15, 2011
Sovereign Debt, The Biggest Bubble of Them All / Interest-Rates / Global Debt Crisis
By: John_Mauldin
This week we turn from the crisis brewing in the US to the one that is coming to a slow boil in Europe. We visit our old friends Greece and Ireland and ponder how this will end. It is all well and good to kick the can down the road, but what happens when you come to the end of the road? The European answer seems to be to haul in the heavy equipment and extend the road.
I am asked all the time what my biggest worry is, and I quickly answer, the European Sovereign Debt Crisis. Of course, then we have to think about the Japanese Sovereign Debt Crisis, followed by the one in the US; but today we will focus on Europe. The biggest bubble in history is the bubble of government debt. It is a bubble in a world full of pins. It will take a great deal of luck and crisis management to keep it afloat, without wreaking havoc on the financial system and markets of the world.
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Sunday, May 15, 2011
Goldman Sachs Using Currency Swaps to Hide Greek Debt Iceberg / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
By now, most realize that Greece used currency swaps with Goldman to hide debt. However, Bloomberg has some new details about those transaction in its report Greece Had 13 Currency Swaps With Goldman, Eurostat Says
Friday, May 13, 2011
The End of Bernanke's "End Game" / Interest-Rates / Central Banks
By: William_Anderson
In a recent screed masquerading as the thoughts of a Nobel prize winner in economics, Paul Krugman excoriates those who speak of
Read full article... Read full article...fear: fear of a debt crisis, of runaway inflation, of a disastrous plunge in the dollar. Scare stories are very much on politicians' minds.
Thursday, May 12, 2011
A ‘New Normal’ how Fed policy influences global financial markets / Interest-Rates / Central Banks
By: ECR_Research
The consequences of the ‘new normal’ (coined by El-Erian of PIMCO) are not limited to the US, but have profound implications how we need to analyze the world economy and financial markets.
The time has passed that the rest of the world followed the US economic cycle closely. The growth dynamic in especially the emerging markets have become much more important, for the rather simple fact that US consumption growth isn’t the single locomotive for the world economy any more. And if we should believe economists, the US consumer will not regain this position in the foreseeable future. They will be too busy paying down debt and saving for retirement. Hardly any economist will disagree with this.
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Thursday, May 12, 2011
Banking in Darkness FDIC System Insures $7trillion Deposits with Dwindling Insurance Fund / Interest-Rates / Credit Crisis 2011
By: Submissions
John Rolls submits : MyBudget360: Americans are offered close to zero percent interest rates to stuff their money into this banking vortex.
The American banking system is based on pure faith. Usually when the topic comes up in conversation I will ask someone if they know what backs the green cash in their wallet. One of the common responses is “there is gold in Fort Knox” or another typical response is that it is backed by U.S. assets. Unfortunately both of these answers are incorrect. In fact all of our money deposited in the banking system is backed by the pure faith in our U.S. government.
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Tuesday, May 10, 2011
Resurgent Greek Debt Crisis Stokes Concern, Causes S&P to Lower Rating / Interest-Rates / Credit Crisis 2011
By: Money_Morning
David Zeiler writes:
Concern that the Greek debt crisis is far from resolved led Standard & Poor's to lower that troubled country's debt rating even deeper into junk territory yesterday (Monday).
The S&P cut Greece to B from BB- with a warning it could downgrade further.
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Monday, May 09, 2011
Ireland's Future Depends on Breaking Free From E.U. Bailout / Interest-Rates / Credit Crisis 2011
By: Christopher_Quigley
OPINION: Ireland is heading for bankruptcy, which would be catastrophic for a country that trades on its reputation as a safe place to do business, writes MORGAN KELLY
WITH THE Irish Government on track to owe a quarter of a trillion euro by 2014, a prolonged and chaotic national bankruptcy is becoming inevitable. By the time the dust settles, Ireland’s last remaining asset, its reputation as a safe place from which to conduct business, will have been destroyed.
Sunday, May 08, 2011
Emerging Markets Monetary Policy Tightening Still Running Strong / Interest-Rates / Central Banks
By: CentralBankNews
The week ending the 7th of May saw continued emerging market monetary policy tightening, with developed market central banks holding off from further tightening. Of the central banks that made decisions on monetary policy settings this week, those that increased were: India +50bps to 7.25%, Philippines +25bps to 4.50%, and Malaysia +25bps to 3.00%.
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Friday, May 06, 2011
ECB Interest Rates, Nothing New, No Problems / Interest-Rates / ECB Interest Rates
By: Axel_Merk
After raising interest rates by 0.25% a month ago, the European Central Bank (ECB) left interest rates unchanged at today's meeting of its Governing Council. The press conference that followed was held in Helsinki; Finland just elected a new government that may block the aid package put together for Portugal. Adjusting to the Nordic spirit of not wasting time with small talk, ECB head Trichet was very much to the point with his answers:
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Sunday, May 01, 2011
U.S. Treasury And Fed Put Out Cash, Raising Fist Pumping Crowd For Ben / Interest-Rates / US Interest Rates
By: PhilStockWorld
Courtesy of Lee Adler at the Wall Street Examiner : The market waltzed through a week of heavy Treasury auction supply, but it did not have to pay the piper until Friday and Monday, May 2, when all the new paper was due to settle. Thursday’s settlement actually saw bills paid down by $11 billion. That and $16 billion in POMO gave the markets plenty of juice for Ben’s coming out party. The US Government, just like Colonel Kadaffy, sent out wads of cash to its minions to insure that cheering, fist pumping crowds would show up for Ben’s appearance before the scripted, adoring mob of ink stained wretches. It was sickening. And I’m not even talking about the so called reporters in the room with him. I’m talking about the security market apparatus. Anyone who dared protest that the market show had gone too far was beaten to a pulp. Even venerable bear David Rosenberg of Gluskin Sheff was cowed into submission.
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Sunday, May 01, 2011
Emerging Markets Central Banks Continue Trend of Tightening Interest Rates / Interest-Rates / International Bond Market
By: CentralBankNews
The past week saw 11 central banks announce monetary policy decisions, with just 3 making adjustments to interest rates. All 3 policy moves were tightening from emerging markets: Colombia + 25bps to 3.75%, Vietnam +100bps, and Russia +25bps to 8.25%. Meanwhile those that held rate unchanged were: Israel 3.00% Botswana 9.50% US 0.25% Namibia 6.00% New Zealand 2.50% Japan 0.10% Hong Kong 0.50% and Egypt 8.25%.
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Friday, April 29, 2011
Fed Launches the Most Fraudulent Market Manipulating Scheme Yet / Interest-Rates / Market Manipulation
By: Dr_Jeff_Lewis
The Federal Reserve is up to its fraudulent games. In this latest round of open market operations, the Federal Reserve is not only engaging in manipulation of the credit default swap market, but also paying off its allies in the ultimate scam of creating low-risk, high returns for hedge fund managers.
Thursday, April 28, 2011
Plummeting U.S. Dollar, A New Wave of Treasuries and Toxic Waste / Interest-Rates / US Bonds
By: Bob_Chapman
We believe there will be something similar to a QE3 by another name and the Fed will probably have to create some $2.5 trillion to buy Treasuries, Agencies, and toxic waste and perhaps inject funds into the economy. Japan certainly won’t be a buyer and probably will be a seller. China has indicated that they won’t be purchasers in the future either. The question also arises concerning the continued purchase of these securities by countries in the oil producing Gulf States, which are in turmoil. The three countries make up 45% of Treasury purchases.
Thursday, April 28, 2011
Did Ben Bernanke Hint at QE3 During Fed Press Conference? / Interest-Rates / Quantitative Easing
By: Money_Morning
Keith Fitz-Gerald writes:
While the first press conference ever held by U.S. Federal Reserve Chairman Ben Bernanke grabbed most of the headlines this afternoon (Wednesday), it was the post-meeting statement issued earlier in the day that grabbed my attention.
In particular, I zeroed in on the part about the policymaking Federal Open Market Committee (FOMC) regularly reviewing "the size and composition of its securities holdings in light of incoming information and is prepared to adjust those holdings as needed to best foster maximum employment and price stability."
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Thursday, April 28, 2011
US Debt Limit Cognitive Dissonance / Interest-Rates / US Debt
By: Brian_Bloom
Cognitive dissonance is an uncomfortable feeling caused by holding conflicting ideas simultaneously. The theory of cognitive dissonance proposes that people have a motivational drive to reduce dissonance. They do this by changing their attitudes, beliefs, and actions.[2] Dissonance is also reduced by justifying, blaming, and denying. It is one of the most influential and extensively studied theories in social psychology. (Source: http://en.wikipedia.org/wiki/Cognitive_dissonance )