Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
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.
Friday, November 05, 2010
Beware The Fed Money Printing Tide / Interest-Rates / Quantitative Easing
By: John_Browne
This week, desperation became palpable at the Fed. In both the formulaic statement that accompanied its FOMC policy decision and Chairman Ben Bernanke's unusual (and clumsy) Washington Post op-ed follow up, the guardians of our currency expressed grave disappointment at the slow pace of US economic recovery and emphasized the continued threat of deflation. The Fed is now pledging to defeat this recession using any monetary means necessary. Unfortunately, their embrace threatens to smother our economy.
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Friday, November 05, 2010
Winners and Losers in the Global Money Printing War / Interest-Rates / Quantitative Easing
By: Mike_Larson
There’s a Great Global Money War raging right now — and the U.S. is losing.
That’s the inescapable conclusion I draw from the market action I see on my screens … the headlines coming across the tape … and the actions being taken in the financial capitals around the world.
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Friday, November 05, 2010
U.S. Fed Buying $600 Billion in Debt with Debt / Interest-Rates / Quantitative Easing
By: Midas_Letter
Here is the glaring hole in the United States Federal Reserve’s approach to what it calls stimulus, and what history will one day categorize as fraud: You can’t use your own debt to purchase more debt when you can’t repay the original debt. The crime is compounded when you know you’re never going to repay the debt. It amounts to treason to intentionally destroy the integrity of the nation’s money. The Federal Reserve’s ability to “purchase” U.S. Treasury Bills is completely dependent on the fact that there is no overseer above the Board of Governors of the U.S. Federal Reserve to call an end to such self-destructive, immoral, and just plain criminal behaviour.
Friday, November 05, 2010
Bernanke Dares The World with QE2 Money Printing / Interest-Rates / Quantitative Easing
By: Brady_Willett
On November 3, 2010 the Federal Reserve Board announced another round of money printing (aka quantitative easing), and yesterday Chairman Bernanke defended the Fed's actions in the Washington Post. It is unusual for Mr. Bernanke to use the op-ed format to impart the Fed's thought process. This speaks to the fact that while so many are aware of the risks of QE2, so few see the potential benefits. Before some thoughts on QE2, first an overview of Bernanke's commentary.
Friday, November 05, 2010
South Korea, Hong Kong, Brazil, China, Complain about Bernanke's QE Policy / Interest-Rates / Quantitative Easing
By: Mike_Shedlock
A parade of countries have expressed grave concerns over the Fed's misguided Quantitative Easing policy.
South Korea Aggressively Considers Curbing Capital Inflows
Thursday, November 04, 2010
Fed QE2, Insanity Prevails Over Common Sense / Interest-Rates / Quantitative Easing
By: Andy_Sutton
It certainly looks as though once again insanity has prevailed over common sense. In what has become a recurring theme in our world, particularly from a policy standpoint, the Federal Reserve announced another round of government bond purchases, dubbing the effort ‘QE2’. I wonder if QE2 is any relation to R2D2 from the popular Star Wars series? I think a rather strong argument could be made that the little guy has more common sense than the entire board of Fed governors. All jest aside, however, there are rather serious ramifications to this latest round of pumping; especially since there is no reason to believe the results will be any different than the last effort. Banks and the Government will maintain the status quo while Main Street languishes.
Thursday, November 04, 2010
QE2 Is Likely to More Successful than QE1 / Interest-Rates / Quantitative Easing
By: Paul_L_Kasriel
On November 3, the FOMC announced that it would increase the quantity of its outright holdings of securities by a net $600 billion by the end of the second quarter of 2011. Thus, the Fed has re-embarked on a policy of quantitative easing. Its first real "voyage" of quantitative easing, QE1, started at the end of November 2008 and ended in March 2010. The expected (hoped for?) outcome of a quantitative -easing policy is increased nominal demand for goods and services. Under normal circumstances when the commercial banking system is not constrained by actual or expected capital inadequacy, the Fed is able to stimulate the nominal demand for goods and services by lowering its key policy interest rate, the federal funds rate.
Thursday, November 04, 2010
The Next Major Disaster Developing for Bond Market 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."
In this free report, you get some of the latest commentary on fixed-income markets adapted from various Elliott Wave International's publications, including 2010 issues of Robert Prechter's monthly Elliott Wave Theorist and its sister publication, The Elliott Wave Financial Forecast.
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Thursday, November 04, 2010
$600 billion Fed funny money! Big LIE! / Interest-Rates / Quantitative Easing
By: Larry_Edelson
This is it — the hot news that Wall Street was waiting for with bated breath.
Fed Chief Bernanke’s going to buy another $600 billion in Treasury securities to pump liquidity into the economy.
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Thursday, November 04, 2010
Reasons Why QE2 Will Fail / Interest-Rates / Quantitative Easing
By: Mike_Shedlock
Dr. El-Erian, CEO and co-CIO of PIMCO states several reasons why QEII will backfire.
1. The Fed is going it alone, without meaningful structural reforms
2. Emerging economies burdened by capital inflows in the wake of QEII will react with currency wars, protectionism, and capital controls
3. Resultant commodity price increases will increase input costs and reduce earnings of American companies
Wednesday, November 03, 2010
Fed Announces QE2 to Make a Dent in the Unemployment Rate / Interest-Rates / Quantitative Easing
By: Asha_Bangalore
The FOMC policy statement, as widely expected, indicated the Fed's plan to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. At the end of October 2011, the Fed's balance sheet stood at $2.278 trillion, with its holding of securities at $2.039 trillion.
Wednesday, November 03, 2010
Fed Anounces $600 Billion QE2 to Buy U.S. Treasury Bonds and Reinvest $250 Billion More / Interest-Rates / Quantitative Easing
By: Mike_Shedlock
As expected, the Fed announced a "modest" $600 billion second round of Quantitative Easing. Estimates rated as high as $2 trillion.
Wednesday, November 03, 2010
What to Expect from the Federal Reserve’s Next Round of Quantitative Easing, QE2 / Interest-Rates / Quantitative Easing
By: Money_Morning
Jon D. Markman writes:
The U.S. Federal Reserve today (Wednesday) is all but certain to announce a second round of quantitative easing - "QE2."
Most analysts believe the Fed will pledge to buy another $500 billion in U.S. Treasuries, but I think it will go even further. My expectation is that $500 billion in Treasury purchases over six months will be just a first step, and that the full amount contemplated - as much as $2 trillion - is much larger than consensus.
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Wednesday, November 03, 2010
Real Bills (loans) are Harmful / Interest-Rates / Fiat Currency
By: Shelby_H_Moore
And analogously saving at interest rates, insurance, and all other forms
of futures contracts (promises and surety) are harmful.
Someone recently attempted to distill Real Bills, but missed the key essence of the problem with Real Bills:
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Wednesday, November 03, 2010
Why Quantitative Easing Is Similar to Monopoly / Interest-Rates / Quantitative Easing
By: Jared_Levy
The second iteration of quantitative easing (QE2) is supposed to make "money easier" -- make it flow from the banks to consumers to businesses, etc. The first round of quantitative easing pumped billions of U.S. dollars into the system, but not much of it made it into my hands, and I'm guessing yours either...
If you have ever played Monopoly and have been "the bank," you get to control all the money that is divided out to each player.
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Tuesday, November 02, 2010
A Refresher Ahead Fed's Announcement of Second Round of Quantitative Easing / Interest-Rates / Quantitative Easing
By: Asha_Bangalore
The Fed is widely expected to announce the second round of quantitative easing (QE) after the FOMC meeting on November 4. The goal of the policy change is to bring about an increase in real GDP above the tepid 2.0% pace reported for the third quarter such that it eventually makes a dent in the current elevated unemployment rate of 9.6%. The details of QE2 in terms of timing, size, and speed are awaited.
Tuesday, November 02, 2010
Goldman Sachs 50-Year Bonds Show Why Investors Should Steer Clear of Wall Street / Interest-Rates / International Bond Market
By: Money_Morning
Martin Hutchinson writes: Last week, Goldman Sachs Group Inc. (NYSE: GS) sold $1.3 billion of 50-year bonds with a 6.125% interest rate. The issue was specially designed - with bonds in denominations as low as $25 - so the securities could be sold to small retail investors.
At last, Goldie's done something for the little guy ...
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Monday, November 01, 2010
U.S. Treasury Bond Market Stabilises / Interest-Rates / US Bonds
By: Levente_Mady
The bond market stabilized last week. Although the economic data schedule was rather busy, trading was more heavily influenced by the Treasury auctions and month end activity as the second tier fundamental news did not offer any major surprises. While the volatility in the currency markets continued, the chop was more sideways and less directional. Trading in stocks and bonds had the same directionless character. The Treasury auctions were somewhat strange during this cycle. Normally the shorter maturities are relatively well received and the longest tranche can hit some bumps. Last week the 2 year auction was mediocre, the 5 year was sloppy but the 7 year bonds were very well received on Thursday setting up – as advertised - a seasonal bond rally into month end very nicely.
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Friday, October 29, 2010
QE2 Sends U.S. Interest Rates Higher / Interest-Rates / US Interest Rates
By: Mike_Larson
So if the latest reporting is to be believed, QE2 is a fait accompli.
The Wall Street Journal on Wednesday said the Federal Reserve plans to purchase “a few hundred billion dollars” worth of Treasuries over a period of “several months.” The Fed will stick largely with Treasury notes, rather than bills or bonds, with the lion’s share of the buying focused on securities with maturities between two and ten years.
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