Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Friday, July 23, 2010
Mortgage Debt … Credit Card Debt … Corporate Debt — It’s all Shrinking! / Interest-Rates / Credit Crisis 2010
By: Mike_Larson
I used to love those Wendy’s commercials in the 1980s. You know, the ones that mocked the burger patties at competing restaurants with the catchphrase “Where’s the beef?”
Today, I can’t help but ask a similar question about the U.S. economy. Namely: “Where’s the credit?”
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Thursday, July 22, 2010
U.S. Credit Firms Tell Clients Not To Use Their Ratings? / Interest-Rates / Credit Crisis 2010
By: Dian_L_Chu
In an article dated July 12, I first reported that Dagong International Credit Rating Co., the largest credit rating agency of China, stripped the the U.S. and some other western nations of the AAA ratings given by its big three Western counterparts. Dagong also accused its Western rivals of not properly disclosing the repayment risk and causing the global financial crisis and current debt crisis in Europe.
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Thursday, July 22, 2010
Make the Trend Your Friend with Market Bond ETFs / Interest-Rates / US Bonds
By: Ron_Rowland
Recent economic data is pointing toward a second wave of recession … and maybe even outright deflation. One key consequence: Long-term interest rates are low and getting lower.
Today I’m going to tell you about some exchange traded funds (ETFs) that I think can thrive in this short-term, falling-rate environment. First, let’s take a look at some evidence the economy is entering the dreaded “double-dip” part of the cycle …
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Wednesday, July 21, 2010
China: The US Is "Insolvent and Faces Bankruptcy" / Interest-Rates / US Bonds
By: Jesse
The common thought amongst even reasonably educated and economically literate Americans is that China is 'stuck with US Treasuries' and has no choice, so it must perform within the status quo and do as the US wishes, or face a ruinous decline in their reserve holdings of US Treasuries.
Wednesday, July 21, 2010
U.S. Treasury Bond Fraud and Debt Monetization / Interest-Rates / US Bonds
By: Jim_Willie_CB
A significant feature of fiat money systems is the privilege for the custodian to commit fraud, big fraud, gargantuan fraud, even counterfeit. Fannie Mae might function as the clearinghouse for numerous massive role programs with $trillion fraud behind each, hidden from view, especially since it was conveniently nationalized. Follow some other fraud schemes, right out in the open. Surely such recount only touches the surface, but these shenanigans are advanced forms of fraud. They are smoking guns of USTreasury fraud and counterfeit, with strong whiffs of monetization. Much more monetization is to come, fully endorsed and sanctioned. Other clever techniques are being used, given the Quantitative Easing has officially been halted.
Wednesday, July 21, 2010
U.S. Treasury Bonds and the Fading Economic Recovery / Interest-Rates / US Bonds
By: Gary_North
Some commentators on the U.S. economy and the European economy are predicting that there will be "quantitative easing" soon. This is a euphemism for central bank inflation.
I have been reporting for months that the present policy of the Federal Reserve System is to deflate the money supply. The chart of the adjusted monetary base since early March indicates this. Similarly, consumer prices have remained flat or close to it this year.
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Tuesday, July 20, 2010
Europe Credit Crisis Stage Two, Internal Bank and Sovereign Debt Crisis Combined / Interest-Rates / Global Debt Crisis
By: Bob_Chapman
The crisis affecting Europe is nothing new. It goes back three years and the beginning of the credit crisis, 60% of the subprime CDOs, collateralized debt obligations, had been sold to European institutions. These were the mortgage bonds, which contained a variety of toxic waste, which the rating agencies, S&P, Moody’s and Fitch, in collusion with banks and brokerage houses, had sold as AAA bonds, when in fact their ratings should have been considerably lower. The holders of these bonds in many instances became insolvent and had to be bailed out by capital injections from central banks, most of the funds were lent by the Federal Reserve.
Wednesday, July 14, 2010
The Emperor Has No Credit / Interest-Rates / Global Debt Crisis
By: Justice_Litle
As political leaders forsake the few shreds of credibility they have left, at least one observer is willing to state the obvious: If credit is clothing, the emperor goes bare.
As the global financial crisis marches on, the world's leaders face a growing problem: The utter loss of not just credit, but credibility.
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Wednesday, July 14, 2010
Gold Illusory Bubble and the Debt Bubble End Game / Interest-Rates / Global Debt Crisis
By: Darryl_R_Schoon
When the end-game began, gold was $35 per ounce. Today, gold is $1200.
When the end-game is over, gold will be far higher.
Midway through 2010 we are approaching the end of the end-game, the resolution of the monetary imbalances that began in 1971. For more than 2500 years, gold was money: but, in 1971 that changed. After 1971, money was no longer connected to gold. For the first time in history, money had no intrinsic value
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Tuesday, July 13, 2010
U.S. Stripped of AAA Credit Rating By China? / Interest-Rates / US Debt
By: Dian_L_Chu
Despite repeated warnings going back several years from Moody's, S&P et al that the U.S. could lose its top credit rating with ongoing fiscal deficits and heavy debts, the platinum-plated AAA rating of the United States seems all untouchable.
Monday, July 12, 2010
China Ratings Agency Downgrades US Debt From Moody's, S&P's, and Fitch's AAA Rating / Interest-Rates / US Debt
By: Jesse
Currency wars. Well at least a Phony War for now. See, nothing has happened. All is well. Move along. Nothing to see here. Status quo intact.
The US sovereign debt gets a stiff downgrade, cut down from number one in the world, to a distant thirteenth place by China's Dagong Credit Rating Agency.
Saturday, July 10, 2010
U.S. Treasury Bonds Safe Haven Could Sink / Interest-Rates / US Bonds
By: Casey_Research
By David Galland, Managing Editor, The Casey Report writes: This morning I read an interesting story in Soundings magazine. It recounted the final voyage of the S.S. Morro Castle, purportedly one of the safest ships afloat back in 1934 when it regularly transported revelers on junkets between New York and Havana. Then, on the night of September 8, a series of unfortunate events occurred that ended with the ship washing up on the New Jersey shore the next day, close to half of its 300 or so passengers dead.
Friday, July 09, 2010
Europe’s Banking Crisis: Latvia’s Third Option / Interest-Rates / Credit Crisis 2010
By: Michael_Hudson
As Europe’s banking crisis deepens, Greece’s and Spain’s fiscal crisis spreads throughout Europe and the US economy stalls, most discussions of how to stabilize national finances assume that only two options are available: “internal devaluation” – shrinking the economy by cutting public spending; or outright devaluation of the currency (for countries that have not yet joined the euro, such as Eastern Europe).
Thursday, July 08, 2010
State of the European Banking System / Interest-Rates / Euro-Zone
By: STRATFOR
Summary -
In the last six months, the eurozone has faced its biggest economic challenge to date — one sparked by the Greek debt crisis which has migrated to the rest of the monetary union. But well before the sovereign debt crisis, Europe was facing a full-blown banking crisis that did not seem any closer to being resolved than when it began in late 2008. With investors and markets focused on European governments' debt problems, the banking issues have largely been ignored. However, the sovereign debt crisis and banking crisis have become intertwined and could feed off each other in the near future.Read full article... Read full article...
Thursday, July 08, 2010
ECB Urges Bank Recapitalizations / Interest-Rates / Credit Crisis Bailouts
By: Axel_Merk
European Central Bank (ECB) President Jean-Claude Trichet, in his press conference following the central bank’s monthly meeting, built on the more confident tone set in recent weeks. Mr. Trichet suggested improved market conditions are a reflection of the decisive and constructive actions taken by eurozone governments.
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Thursday, July 08, 2010
The Case For U.S. Treasury Bonds Rally / Interest-Rates / US Bonds
By: Guy_Lerner
With the economy softening and the Federal Reserve unable to provide a positive catalyst in the form of lower rates, the bond market has taken up of the slack producing lower yields. For example, mortgage rates have dropped over the past month enticing homeowners to refinance. It may not clear the glut of homes on the market or get us back to the old days of your house as an ATM machine, but lower rates do help. This appears to be a trend that will continue especially since Washington and the Fed no longer have the political will to expand the deficit.
Wednesday, July 07, 2010
You're Crazy to Hold Government Bonds... Here's a Safer, Growing Yield / Interest-Rates / US Bonds
By: DailyWealth
Dan Ferris writes: Investors are scared.
During the week of June 23-June 30, the American Association of Individual Investors Survey indicated investors are much more fearful than usual. On average, 31% of individual investors are bearish. These days, 42% of investors are bearish. On average, 39% are bullish. Today, just 25% are bullish.
Wednesday, July 07, 2010
Municipal Finance Pathologies Come to a Head / Interest-Rates / US Bonds
By: Fred_Sheehan
Discussions about municipal finance generally assume three absolute conditions. First, the principal and coupon of municipal bonds are guaranteed: "Municipal bonds don't default," according to trusted experts. Second, the guarantees are backed by the taxing authority of the state or municipality. Third, accrued pension benefits are guaranteed.
Wednesday, July 07, 2010
Fed Audit Failure Lends Credence to QE Rumors / Interest-Rates / Quantitative Easing
By: Dr_Jeff_Lewis
Just last week, Congress had a critical piece of legislation before it. Congress, through House bill HR 1207, could pass the bill in its entirety with a simple majority vote, and it would be included in the Financial reform overhaul bill which is currently being pushed through Congress. Should the audit bill have been added to the financial reform legislation, upon passage, the books at the Federal Reserve would be opened for audit by the GAO – at which point every citizen, politician, and investor would know within six months the extent of the actions taken by the Fed over the past 97 years of pure secrecy.
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Tuesday, July 06, 2010
Inflation Isn’t Dead, Just Sleeping, Protect Your Wealth With TIPS / Interest-Rates / Inflation
By: Money_Morning
Larry D. Spears writes: Investors are always on the lookout for hot tips. The best tips highlight investments that pack a big potential profit punch, but that haven't yet started their move.
That's just what we have for you here.
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