Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Monday, December 03, 2012
Bank of England Cancels Britain's Debt, Coalition Government Budget Deficit Crisis is Pure Propaganda / Interest-Rates / Quantitative Easing
By: Nadeem_Walayat
The focus of this article is on Britains debt dynamics as the people of Britain continue to be bombarded with propaganda in respect of the unfolding Inflationary Depression that the country has been immersed in since at least early 2008. In terms of politics, propaganda takes the form of declarations for ever greater needs for economic austerity by the Coalition government whilst the Labour party as usual takes the opposite line, when the reality is that there has been no real net economic austerity in Britain, as there has been no cut in government spending and hence the deficit continues to persist let alone any actual repayment of debt that continues to expand by about £120 billion per year.
Friday, November 30, 2012
Will the U.S. Treasury Bond Bubble Finally Burst in 2013 / Interest-Rates / US Bonds
By: Money_Morning
Shah Gilani writes:
The Federal Reserve's multi-year prescription of targeting super-low interest rates on federal funds, along with various quantitative easing programs, has pushed yields down on all fixed-income instruments to the benefit of issuers and the detriment of investors.
There is little doubt that the Fed's articulated and executed policies have resulted in a bond-bubble with both short and long-term consequences for investors and the economy.
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Thursday, November 29, 2012
Have Interest Rates Finally Bottomed? / Interest-Rates / US Interest Rates
By: Submissions
Timothy Lutts writes: The media in recent weeks have been full of stories about the coming Fiscal Cliff. No one knows exactly how Congress is going to deal with it, but one fairly common opinion is that taxes will go up on investment income.
As a result, many smart people have been making moves to take income now rather than in 2013 (or later.)
Sunday, November 25, 2012
Is The US Bond Market Ponzi Scheme Coming To An End? / Interest-Rates / US Interest Rates
By: WavePatternTraders
The US Bond market has been in a bull market since the 1980s and although I originally was looking for a potential high early this year, we have not really progressed much further, expect that real rates have come down even lower and tested the prior December 2008 lows at 2.5%, potentially creating a double bottom.
Thursday, November 22, 2012
How Spanish Debt Default Would Trigger an Epic Financial Crash / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
Over the last week I’ve introduced the concept of collateral: the little known basis for the entire financial system. We’ve also addressed why any EU sovereign default would bring about an epic meltdown as EU bonds, particularly those of Spain and Italy are the collateral underlying hundreds of trillions of Euros worth of trades for EU banks.
Again, the most important issue for the financial system is the search for high quality collateral.
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Thursday, November 22, 2012
Debt Crisis Solutions are Leaving Investors Behind / Interest-Rates / Global Debt Crisis 2012
By: Ben_Traynor
How the losses are being paid for...
It used to be taken for granted that you could put aside some money and earn enough interest to be better off than when you started.
As the world continues to struggle with the aftermath of an enormous credit boom and its subsequent bust, though, this kind of objective seems hopelessly naïve. Events in Europe and the US this week are the latest reminder of this. To see why, let's start with a riddle:
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Thursday, November 15, 2012
US Budget Deficit Soars in October; Do You Trust the Politicians to Solve This Looming Crisis? / Interest-Rates / US Debt
By: InvestmentContrarian
Sasha Cekerevac writes: The U.S. Treasury Department recently released the budget deficit numbers for October, reporting a massive $120 billion deficit. This compares to a budget deficit in October 2011 of “only” $98.0 billion. While the U.S. economy is not growing at a rapid rate, it’s certainly not shrinking. So in the span of one year, with some growth in the U.S. economy, albeit slow growth, we’ve seen an approximate $20.0-billion monthly year-over-year increase in the budget deficit. I think this shows the true ineptitude of our political leaders.
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Thursday, November 15, 2012
Facing the Fiscal Cliff Solves 77% of the Deficit Problem in One Move / Interest-Rates / US Debt
By: Money_Morning
Martin Hutchinson writes:
With the election over, Wall Street is now obsessing over the possibility that the "fiscal cliff" negotiations may end in stalemate.
Well I have news for them: a stalemate would be good for the U.S. economy, and any deal that does not preserve most of the fiscal cliff is not worth having.
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Wednesday, November 14, 2012
Italian Prosecutor Charges Fitch and S&P Employees With Culpable Incompetence / Interest-Rates / Credit Crisis 2012
By: Andrew_Butter
I noticed that the public prosecutor in some remote corner of Italy is attempting to get a clutch of hapless employees of S&P and Fitch charged with…well I‘m not quite sure what? Public disorder…incompetence…economic terrorism…driving whilst under the influence of America?Read full article... Read full article...
Saturday, November 10, 2012
Bankrupt Greece Unlikely to Get Bailout Next Week / Interest-Rates / Eurozone Debt Crisis
By: Ian_R_Campbell
It has now been reported that for logistical reasons it is very unlikely Greece will be able to draw down on further bailout funds before the week of November 19 at the earliest, notwithstanding the approval of the Greek Parliament on Wednesday of the austerity measures proposed last Monday. This is said to result from:
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Saturday, November 10, 2012
Bond Markets Train Wreck to Benefit Gold / Interest-Rates / Eurozone Debt Crisis
By: Ben_Traynor
Why investors, fearful of currency depreciation, have turned to gold...
Not so long ago, everyone seemed to think Greece was about to leave the Euro.
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Thursday, November 08, 2012
The Stage Has Been Set For Another Credit Crisis / Interest-Rates / Credit Crisis 2012
By: Money_Morning
Shah Gilani writes: If you think yesterday's market action was something to worry about, you ain't seen nothing yet.
President Barack Obama getting re-elected sets the stage for another credit crisis.
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Wednesday, November 07, 2012
The ECB and Fed Are Worlds Apart / Interest-Rates / Central Banks
By: Axel_Merk
The contrast in approach to central banking between the U.S. Federal Reserve (Fed) and the European Central Bank (ECB) is remarkable. ECB President Draghi has done more to lift market concerns with a targeted strategy than Bernanke's blunt attempts. In announcing the Outright Monetary Transactions (OMT) program, Draghi not only shored up market concerns, but also forced upon European policy makers a pathway for a fiscal framework and centralized fiscal oversight. From a currency perspective, such steps may serve to bolster the euro. In contrast, Bernanke appears willing to do all the heavy lifting on the economy while gridlock remains in Washington. We fear that the unintended consequences of such accommodative policies may undermine the U.S. dollar over the foreseeable future, and ultimately pose significant risks to the U.S. economy.
Saturday, November 03, 2012
Euro-zone Debt Crisis Deepening as Greece Runs Out of Money on November 16th / Interest-Rates / Eurozone Debt Crisis
By: Global_Research
Nick Beams writes: The eurozone financial crisis is set to deepen following this week’s release of debt projections for the Greek economy. Budget estimates show that instead of peaking at 167 percent of gross domestic product, as predicted last March when the so-called bailout package was put in place, the debt ratio will hit 189 percent this year, rising to 192 percent in 2014—well above the worst case scenarios of just eight months ago.
Friday, October 26, 2012
Counterfeit Economies Facing Waves of Insolvency, Bonds the Ultimate Malinvestment / Interest-Rates / Global Debt Crisis 2012
By: Ty_Andros
The Mayan calendar points to the end of the world coming in December. It may not end on that date but major disruptions can be anticipated. CENTRAL banks have fully uncorked the printing presses to meet the waves of insolvency set to STRIKE the banksters, public servants and the elites. Transferring your wealth to themselves and their something for nothing societies to PAY for their moral and fiscal insolvencies.
Thursday, October 25, 2012
Bankrupt Spain is Beyond Saving / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
My prediction regarding the breakup of the EU was obviously way early.
However, the fact remains that the EU will break up in time. And it will likely be Spain that brings this about.
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Thursday, October 25, 2012
Why Government Debt Is Dragging on the U.S. Economy / Interest-Rates / US Debt
By: Casey_Research
By Dan Steinhart, Casey Research : The US has too much debt. This is no longer a controversial statement. Some may believe other problems are more urgent, or that we need to grow our way out rather than slash spending. But even the most spendthrift pundits acknowledge that the debt-to-GDP ratio of the US must decrease if we are to have a stable, prosperous economy.
Thursday, October 25, 2012
Draghi's Plan to buy Sovereign Bonds Just Buying Time / Interest-Rates / Eurozone Debt Crisis
By: Bloomberg
Michael Platt, founder of BlueCrest Capital Management, told Bloomberg Television's Stephanie Ruhle on "Market Makers" today that "Europe has no credible plan for growth" and Draghi's plan to buy government bonds is a revised version of ESM and a way to buy time.
Platt also said that the euro is "interesting because it reminds me of the situation in the yen. You never would have expected the yen to be such a strong currency for the last 25 years."
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Sunday, October 21, 2012
Spain’s Back In Debt Crisis Mode… And Will Take The EU Down With It / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
Spain’s Back In Debt Crisis Mode… And Will Take The EU Down With It
As I noted previous articles, Spain has essentially three options:
1) Spain goes the “Greek route” of agreeing to austerity measures in exchange for bailouts (which will implode the economy).
2) Prime Minister Rajoy refuses to impose austerity measures and is removed/ replaced by an EU technocrat who is pro-austerity measures (like Italy experienced last year)
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Friday, October 19, 2012
Is Bernanke Losing Control? / Interest-Rates / US Bonds
By: Marty_Chenard
We all know the talk ... Bernanke has a mission to keep long term interest and mortgage rates low. And, low mortgage rates will be good for housing and the economy.
But ... is Bernanke getting into trouble relative to his ability to keep rates low?
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