Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Thursday, November 18, 2010
QE2 Backfires, Collapse in Irish and U.S. Bond Markets / Interest-Rates / Global Debt Crisis
By: Gary_Dorsch
“Oh what a tangled web we weave when first we practice to deceive,” said Sir Walter Scott. The Republican Party enjoyed a major victory in the congressional midterm elections, winning back control of the House of Representatives and gaining seats in the Senate. Republican leaders are giving the Tea Party movement a lot of credit for their success, and one of its high profile leaders, Kentucky’s Senator-elect, Rand Paul declared, “We’ve come to take our government back.”
Thursday, November 18, 2010
Where Are the Bond Vigilantes? Rise of the Dollar Vigilante / Interest-Rates / US Bonds
By: Jeff_Berwick
Last seen in full force in the inflationary early 1980s, bond vigilantes were shadowy figures who were said to have rebelled and swore to keep central banks and governments honest by raising long term interest rates whenever the authorities kept their own interest rates too low, or let budget deficits grow out of control.
Yet now, with interest rates at near zero percent and budget deficits in the US stretching the boundaries of belief, not a peep.
Thursday, November 18, 2010
European Debt Crisis 2, E.U. Has New Candidates for Bankruptcy / Interest-Rates / Global Debt Crisis
By: Pravda
A problem enforcing experts to talk about «European debt crisis-2» has gathered. According to the poll made by Bloomberg agency more than 50 percent of respondents from among international investors consider default of Ireland as possible, almost 40 percent consider such a scenario as possible for Portugal. All that leads to impetuous cheapening of the European currency, experts say.
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Thursday, November 18, 2010
Ireland Being Forced to Become a Debt Slave Nation / Interest-Rates / Euro-Zone
By: Submissions
If Europe's single currency fails, so would the Union itself. The warning comes from the EU president, who was speaking ahead of the meeting of the Eurozone's finance ministers. Portugal has warned it could be forced out of the Eurozone, and Ireland is also being urged to use European bailout money to prevent bankruptcy. But Financial analyst Max Keiser says going to the IMF for help would be even worse.
Wednesday, November 17, 2010
Bernanke in Big Trouble, Global Investors Prepare to Dump Trillions of Dollars / Interest-Rates / US Bonds
By: Gary_North
Ben Bernanke is in trouble. Big trouble. Bigger trouble than any Federal Reserve Chairman has ever been in.
There is a cartoon video all over the Web that discusses "quantitative easing." It is a riot. This is very, very bad for Bernanke. When the public starts laughing at a senior government bureaucrat, he is in trouble.
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Wednesday, November 17, 2010
Why Buying Bonds is a Bad Idea / Interest-Rates / US Bonds
By: Richard_Daughty
If there are two things that you can count on, it is that you have got to be pretty quick to get the last piece of pizza before I snag it, and that I am never remiss in telling people that buying bonds at these insanely-low yields is the Exact Wrong Thing (EWT) to do.
Unfortunately, my latest "student" was the cashier at the grocery store, who, it turns out, knows absolutely squat about what bonds are, although she admits that she has heard the word before.
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Tuesday, November 16, 2010
Analysis of QE2 Success or Failure at Lowering Bond Market Interest Rates / Interest-Rates / US Interest Rates
By: Mike_Shedlock
Curve Watchers Anonymous is investing Bernanke's claim that QE II has already been a success at lowering treasury rates.
Tuesday, November 16, 2010
Ireland Bailout Threatens to Reignite Euro Debt Crisis / Interest-Rates / Global Debt Crisis
By: Money_Morning
Don Miller writes:
Ireland's reeling banking system, and the government's reluctance to accept outside help, is threatening to reignite the European debt crisis that nearly led to the demise of the European Union (EU) and its currency last spring.
EU officials are trying to persuade Irish officials to shore up the country's devastated banking sector with a possible $100 billion (73.5 billion euros) aid package as Irish policymakers continue to insist that the financially troubled nation doesn't require a bailout.
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Monday, November 15, 2010
Shocked that QE2 is Akin to Printing Money and Public Debt Monetization! / Interest-Rates / Quantitative Easing
By: Paul_L_Kasriel
Every student who took Econ 101 and stayed awake during the lectures learned that the Federal Reserve has the power to create credit figuratively "out of thin air." The A-students also learned that the commercial banking system, not individual banks, under the fractional-reserve system that we and every other developed economy has also has the power to figuratively create credit out of thin air if the Federal Reserve first provides the "seed" money to do so. This is not unique to the Federal Reserve and the U.S. commercial banking system. This holds wherever there are central banks and fractional-reserve commercial banking systems. So, when there is an increase in the sum of Federal Reserve credit and commercial banking system credit, credit is created out of thin air, which is akin to "printing money."
Monday, November 15, 2010
Growing Signs of Renewed Debt Crisis in Europe / Interest-Rates / Global Debt Crisis
By: Global_Research
Stefan Steinberg writes: There are growing signs of a renewed debt crisis in a number of European nations, as bond yields soar to record highs and the continent’s economic growth stagnates.
The heads of leading European countries took the exceptional step of using the Group of 20 meeting in Seoul to announce that the European Union had confidence in the measures undertaken by Irish leaders to address the nation’s budget deficit. At the same time, the leaders of Germany, France, Italy and the United Kingdom issued a statement declaring that the EU had no plans for an additional bailout of European nations until at least 2013.
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Monday, November 15, 2010
Fed QE Money Printing Getting Even Wilder! / Interest-Rates / Quantitative Easing
By: Martin_D_Weiss
I’ve seen a lot of crazy monetary shenanigans in my lifetime — in Brazil, Japan and elsewhere.
But I’ve never seen anything quite like the explosion of out-and-out money printing we’re witnessing in the United States today.
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Sunday, November 14, 2010
Bankrupting Ireland in Economic Depression Announces Policy of Quantitative Cheesing / Interest-Rates / Global Debt Crisis
By: Nadeem_Walayat
Ireland's economic depression is intensifying as the economy remains in recession and Irish bonds plunged sending yields soaring on concerns of more banking sector losses that continue to send Irelands public debt and liabilities soaring as the bankrupt banks continue offload their huge losses onto Irish tax payers, that negates all of the austerity pain suffered to date, which requires even more sacrifice to ensure that the bankster's and bond holders are bailed out 100%, resulting in an country bankrupting annual budget deficit of 32%, which Ireland cannot monetize through money printing.
Saturday, November 13, 2010
Sterilizing Money at the QE Corral / Interest-Rates / Quantitative Easing
By: Richard_Daughty
There are a lot of intricacies in the Federal Reserve's evil ways, especially as concerns creating $900 billion in the next six months in another round of quantitative easing, and one of them is explained by Daniel R. Amerman of DanielAmerman.com. He says, "There is something else essential for investors and savers to understand about the process which the Federal Reserve has just outlined. The Federal Reserve is not directly purchasing treasury bonds from the US government. Instead, US banks are purchasing the bonds from the US Treasury to fund the deficit, and then selling an equal amount of other bonds (likely at a nice profit) to the Federal Reserve."
Friday, November 12, 2010
QE2, They Just Don't Get It / Interest-Rates / Quantitative Easing
By: Paul_L_Kasriel
No, I am not talking about the Democratic Party. I am talking about the mainstream commentators on the Federal Reserve's second round of quantitative easing, or QE2. In their defense, perhaps one of the reasons they don't get is because the way the Fed, itself, marketed it. This might suggest that the Fed doesn't really get it either. Firstly, the fact that the Fed announced that QE2 would involve the purchase of Treasury coupon securities rather than Treasury bills implied that one of the goals of QE2 was to bring down the interest rate levels on longer-maturity securities. Why is it so desirable to bring down the yield on longer-maturity securities? Because for decades, economists have clung to the unsubstantiated hypothesis that the interest rates on longer-maturity securities are what "count" in terms of decisions related to private-fixed investment expenditures.
Friday, November 12, 2010
Bernanke QE2 Program Backfiring! Global Money War Intensifying! / Interest-Rates / Quantitative Easing
By: Mike_Larson
The reviews are coming in fast and furious — and they’re downright terrible!
I’m not talking about the latest romantic comedy or action movie. I’m talking about the reviews of the Federal Reserve’s quantitative easing, or “QE2,” program! Get a load of these comments …
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Thursday, November 11, 2010
BAC Rallying in Sync with U.S. Treasury Bonds TBT ETF? / Interest-Rates / US Bonds
By: Mike_Paulenoff
The enclosed comparison chart supports my sense that the banks in general, and Bank of America (BAC) in particular, are sensitive to the recent shift in the shape of the yield curve. In a loose sort of way, the patterns between the ProShares UltraShort 20+ Year Treasury (TBT) and BAC exhibit some pattern similarity. Certainly, the April-August downtrends paralleled closely, which represented a relentless decline in longer-term interest rates (TBT) concurrent with the declining price of BAC.
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Wednesday, November 10, 2010
Bernanke’s Money Printing Monetary Policy Is Doomed! / Interest-Rates / Quantitative Easing
By: Claus_Vogt
Last week Ben Bernanke wrote an article for The Washington Post to justify the Fed’s decision of another round of quantitative easing. Here’s his core argument:
Read full article... Read full article...“Easier financial conditions will promote economic growth. For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment.
Wednesday, November 10, 2010
Foreign Government's No More U.S. Treasury Debt Purchases Would be Bullish for Commodities / Interest-Rates / US Debt
By: Gary_North
The familiar slogan of investing is this: "Timing is everything." If true, then Ben Bernanke had a bad week. Calling it a bad week barely does justice to it.
On November 2, the American people went to the polls in the greatest numbers in history for a mid-term election and threw out Democrats in the House of Representatives. If the Senators had all been up for re-election, the Democrats would have lost their majority. It was the largest reversal in the House since 1938, when Roosevelt's Supreme Court-packing scheme led to a huge veto at the polls by Republicans – an event not mentioned in the (universally) pro-Roosevelt history textbooks. The textbooks do admit that Roosevelt knew that he had gone too far. He never mentioned the plan again. It was the only major defeat of his Presidency.
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Tuesday, November 09, 2010
Bond Market Disaster For Treasury, Municipal and High Yield Bond Investors / Interest-Rates / US Bonds
By: EWI
Elliott wave analysis can warn you of trend changes when the rest of the investment public least expects a market reversal. With that in mind, we have created a new report for our free Club EWI members: "The Next Major Disaster Developing for Bond Holders."
Tuesday, November 09, 2010
Fed Accelerating Cycles of Money Pritning Without Exit Strategy / Interest-Rates / Quantitative Easing
By: Peter_Schiff
While it's true that history repeats itself, the patterns should always be separated by a generation or two to keep things respectable. Unfortunately, in today's economic world, it seems the cycle can be counted in months.