Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Wednesday, May 19, 2010
The Greek Debt Tragedy a Sneak Preview of What's Coming to Washington / Interest-Rates / Global Debt Crisis
By: Ron_Holland
"The current European debt crisis likely will not end until the euro collapses as a currency and takes the entire European Union with it." ~ Dennis Gartman, hedge fund manager and writer of The Gartman Letter
I was just in Greece, where the stupidity and venality of the political class are in full view.
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Wednesday, May 19, 2010
Global Debt Defaults Ahead as Keynesian's Race to Bankruptcy / Interest-Rates / Global Debt Crisis
By: Gary_North
The euro is falling. It is at the lowest exchange rate to the dollar in four years.
Confidence in the euro is falling because it is becoming clear that the region's commercial bankers have made the same sorts of bad decisions that American commercial bankers made after 2000. They loaned money to debtors in Eastern Europe who will not be able to repay. These loans were collateralized by real estate, which rose. Real estate prices in Eastern Europe are now falling. The bubble has popped.
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Wednesday, May 19, 2010
Debt Default ‘Deferral’ of Greece a Dangerous Precedent – Got Gold? / Interest-Rates / Global Debt Crisis
By: Arnold_Bock
If the implications of the recent Greek tragedy were not so serious it would have been seen more as a Greek comedy (of fiscal errors). In fact, however, to deploy another metaphor, Greece's sovereign debt is seen as the proverbial canary in the coal mine - a microcosm of the relentlessly growing sovereign debt that has taken much of Europe by storm and is threatening to spread to the U.S.
Tuesday, May 18, 2010
Guess Who’s Even MORE Broke Than Greece? / Interest-Rates / Global Debt Crisis
By: Graham_Summers
Sentiment is a strange thing.
Greece’s debt issues have been staring everyone in the face for years. And yet it wasn’t until January 2010 that they suddenly became “relevant” to the investment world.
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Tuesday, May 18, 2010
Eurozone Debt Crisis Goes Totally Looney Tunes! / Interest-Rates / Euro-Zone
By: Graham_Summers
Baguettes Vs. Bratwursts - The situation in Europe has officially passed “crazy” and gone into total Looney-Tune-ville. Let’s review how this once great economic entity has shifted from producing anything of value to an economy primarily involved in the production of insane headlines that look like something from The Onion or some other satirical newspaper.
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Monday, May 17, 2010
Will Euro Sovereign Debt Contagion Cross the Atlantic to the U.S.? / Interest-Rates / Global Debt Crisis
By: Julian_DW_Phillips
Even after the massive rescue package [$750 billion] was delivered, confidence in the € seeped away and it weakened to $1.2320. With U.S. sovereign debt at unacceptable levels too, the debt fear 'contagion' cross the Atlantic? More than that, if bond values continue to drop will the lending banks to the debts issued survive. Can this happen in the States and will their banks be dragged into the crisis?
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Monday, May 17, 2010
U.S. Treasury Bonds, Stay Long and Earn the Carry! / Interest-Rates / US Bonds
By: Levente_Mady
The bond market did exactly what it was supposed to do last week: it pulled back to the break-out level at 120 and then it started moving higher again. In spite of the massive bounce in stocks on Monday, the market remains quite nervous. The long auction cycle included a record $16 Billion 30 year bonds on Thursday. The market received the 3 year tranche very well, the 10 years were better than average and the long bond managed to drum up enough interest to keep key support at 120 intact. While crude oil is leading commodities to the downside, gold continues to have a remarkable bid as it moved to new all time highs near 1250 on Friday.
Monday, May 17, 2010
India Interest Rates Scenario Part1 / Interest-Rates / India
By: Dhaval_Shah
If you are thinking Interest Rates(IR) would not go up? Think twice.
All major inflationary forces acting like windstorm swiping the world and pouring debt(currency printing ) across the world first to bail out corporate than to taxpayers and now to nations and in last stage probably to entire world seems like windstorm & rainstorm are converging to category 5 Hurricane Katrina.
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Saturday, May 15, 2010
ECB Abandons Independence and Prints $1Trilion to Prevent Euro-Zone Collapse / Interest-Rates / Euro-Zone
By: John_Mauldin
Europe Throws a Hail Mary Pass
It's More Than Just Government Debt
The Grand Misallocation
In a 1975 playoff game, the Dallas Cowboys were nearly out of time and facing elimination from the playoffs, down 14-10 against a very good Minnesota Vikings team. The Cowboys future Hall of Fame quarterback Roger Staubach had no very good options. He later said he dropped back to pass, closed his eyes and, as a good Catholic, said a Hail Mary and threw the ball as far as he could. Wide receiver Drew Pearson had to come back for the ball and, in a very controversial play, managed to catch the ball on his hip and stumble into the end zone. Angry Vikings fans threw trash onto the field, and one threw a whiskey bottle that knocked a referee out. After that play, all last-minute desperation passes became known as Hail Mary passes. (That was a very thrilling game to watch!)
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Saturday, May 15, 2010
Japan The Sleeping Sovereign Debt Crisis Giant / Interest-Rates / Global Debt Crisis
By: Bryan_Rich
Over the course of this year in my Money and Markets columns I’ve presented some compelling reasons why the euro zone and the euro were in for a life threatening crisis. And despite the general consensus along the way that the problems in Greece were contained and that dips in the euro should be bought, I maintained that the euro was in a no-win situation.
Saturday, May 15, 2010
California Debt Default is More Likely than Iceland or Iraq / Interest-Rates / US Debt
By: Washingtons_Blog
Federal Reserve isn't the only one who owns credit default swaps betting that California will default.
As Ed Harrison points out, credit default traders have now ranked California in the list of top 10 governments most likely to default, with a 20% default probability:
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Friday, May 14, 2010
Strategic Mortgage Defaults the Next Debt Time Bomb To Explode / Interest-Rates / US Debt
By: Sol_Palha
We spoke of this issue several months ago and stated that we were possibly in the midst of a new trend. We no longer need to ponder about this anymore; we are, in fact witnessing a new trend.
Friday, May 14, 2010
U.S. Solvency Contingent on Low Interest Rates / Interest-Rates / US Interest Rates
By: Michael_Pento
According to the Department of Treasury’s Auction Staff, the U.S. auctioned $8.8 trillion in Bills, Notes and Bonds in fiscal year 2009. That number is greater than the entire publicly traded debt, which is currently $8.4 trillion. The reason for the enormous amount of debt issuance is due to our surging annual deficits and rollovers that must occur more frequently because of the government’s decision to issue debt on the short end of the yield curve.
Friday, May 14, 2010
EURO EXPERIMENT: E.U. Bullied into $1T Banking Bailout Bonanza / Interest-Rates / Credit Crisis Bailouts
By: Gordon_T_Long
Like a chess game, the bankers called 'checkmate' against the EU political leaders on Friday May 5th, 2010. Two days later in an urgently called weekend meeting the EU finance ministers hurriedly announced the biggest bailout in history.
Most people take more than two days to buy a car, but the frightened EU officials were pressured into reacting before the Asian markets opened Sunday evening. This is eerily the same scenario we saw on the eve of the US $700B TARP ratification, the Bear Stearns takeover, Fannie /Freddie Conservatorship, AIG Bailout etc.. A coincidence - Yeh right!
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Friday, May 14, 2010
Budget Busting Bailouts in Europe Drive Global Debt Burden Higher! / Interest-Rates / Global Debt Crisis
By: Mike_Larson
I’ve been out in Las Vegas this week for the MoneyShow. So naturally, I have gaming on the brain. My conclusion after reading the latest news out of Europe?
The European Central Bank (ECB) and European Union (EU) policymakers are going “all in” to head off the sovereign debt crisis there. Specifically …
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Thursday, May 13, 2010
Greek Debt Wildfire Engulfs the Euro in Flames, Boosts Gold / Interest-Rates / Global Debt Crisis
By: Gary_Dorsch
It takes a lot more time to safely extinguish a fire than it does to start it. There’s an important lesson to be learned from a sad story of a homeowner, who had been burning debris in the backyard of her home, and thought she had put the fire out. She later found out the fire had spread and was burning grass underneath her deck porch, which soon engulfed her two-story brick frame home in flames.
The woman tried to put the fire out and called her 14-year-old son to help. Unable to extinguish the blaze, the woman finally called 911 for help. However, by the time fire officials arrived, the fire had burned most of the backyard and the home was fully engulfed in flames. The incident is a reminder of the importance of calling authorities early when fires occur, instead of trying to put them out your-self.
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Wednesday, May 12, 2010
Greece Economic Depression Resulting in INFLATION NOT DEFLATION Surge / Interest-Rates / Global Debt Crisis
By: NewsLetter
The Market Oracle NewsletterMay 5th, 2010 Issue #27 Vol. 4
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Tuesday, May 11, 2010
E.U. Greece Bailout Fails to Defuse the Ticking Global Debt Bomb / Interest-Rates / Global Debt Crisis
By: Money_Morning
The ticking global debt bomb is in the in the spotlight again. Or, at least, it should be.
Greece's woes draw attention to the looming financing problems of other countries with a lot of debt. The strain of funding these requirements - the global debt bomb - is the greatest threat to global growth prospects. This is why central banks have flooded the financial system with money. It's the biggest and most critical financial battle of our time.
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Tuesday, May 11, 2010
E.U. Greece. PIGS Bailout Means the Death of Capitalism / Interest-Rates / Credit Crisis Bailouts
By: John_Mauldin
Was it only last week I was expressing outrage that US taxpayers would have to pick up the check for Greek profligacy in the form of IMF guarantees? This morning we wake to up the sound of $250 BILLION in IMF guarantees for a European rescue fund, most of which will go to countries that are eventually (in my opinion) going to default. That is $50 billion in US taxpayer guarantees. Not sure what that translates into for Britain or Canada or Australia.
Tuesday, May 11, 2010
E.U. $1 Trillion Bailout, Detonates Nuclear Option of Printing Money to Monetize PIGS Debt / Interest-Rates / Credit Crisis Bailouts
By: Nadeem_Walayat
Whilst most in the mainstream press are occupied by the big numbers behind the Euro 720 billion / $1 trillion of bailout loans, and guarantees of the Eurozone PIGS, however the most important change announced was the European Central Banks intentions to buy the debt of Eurozone countries in effect adopting an open ended policy of Quantitative Easing or money printing to monetize the debt of bankrupting Eurozone countries much as the other central banks have been doing of the US, UK and Japan. Which means that the debt burden of the PIGS has been dumped onto mainly German tax payers therefore it's not surprising that European banks holding bankrupting PIGS debt have soared in price as the PIGS government debt they hold is now effectively being insured by the ECB.