Thursday, December 17, 2015
Gold Price Rises on Fed Interest Rate Hike, as Contrarians Predicted / Commodities / Gold and Silver 2015
By: The_Gold_Report
Predicting is a risky sport and predicting markets an extreme one. But understanding can be much more lucrative. After years of speculation about the negative impact a Federal Reserve rate increase could have on gold, a number of our experts took a contrarian view and based on an understanding that the hike was already priced into the gold price, they explained that it would actually benefit the gold price because it would remove the overhanging doubt. And that is exactly what happened. Within hours of the unanimous announcement on Wednesday that the Fed's benchmark short-term borrowing rate would go up a quarter point, gold was up $14/oz.
Read full article... Read full article...
Thursday, December 17, 2015
Stock Market Finally .25... Bullish Statement.... Gradual.... Bull-Bear At 8%.... / Stock-Markets / Stock Markets 2015
By: Jack_Steiman
The world has waited for years it seems for that first rate hike, since the economy was supposedly improving. Month after month, and report after report, for well over a year the market couldn't decide whether Fed Yellen would finally raise rates that quarter of a percent. You would think it would be slam dunk if things were rosy, but we all knew they really weren't, so she refused to raise. ISM Manufacturing Report is in decline. Services going the wrong way as well. It's hard to raise rates when the economy can't get out of its own way. The pressure kept mounting, however, as the Yellen knew the street wanted to see some confidence, since she kept saying that things were getting better. She finally did the dirty deed this afternoon. I'm sure she feels mixed, since we are contracting on manufacturing. It's truly unheard of to raise rates, even though they were at zero, in a declining economy. The key to the whole thing was the statement after the raise.
Read full article... Read full article...
Thursday, December 17, 2015
SPX Sports a 7-point Reversal Pattern / Stock-Markets / Stock Markets 2015
By: Anthony_Cherniawski
SPX has now formed a seven-point reversal, normally seen as a five-point reversal. This is typical when there exists a need for delay combined with a high degree of emotion in the market. It appears to be challenging the Intermediate-term resistance at 2073.31.
The sell signal is reaffirmed when SPX has fallen again beneath the 200-day Moving Average at 2067.31. Confirmation that the sell signal is still supportable when SPX falls beneath today’s open where the Orthodox Broadening Top trendline lies at 2045.
Read full article... Read full article...
Wednesday, December 16, 2015
U.S. Interest Rate Hike Too late, Recession Likely in Next 12 Months - Video / Interest-Rates / Recession 2016
By: Bloomberg
Sam Zell, chairman at Equity Group Investments, spoke with Stephanie Ruhle and David Westin on Bloomberg TV's "Bloomberg <GO>." He discussed the expected Federal Reserve rate hike, the risk of a near-term recession, and investor flexibility provided by low-interest.
Zell said: "I think that this interest rate hike is probably 6 or 8 months too late. I think that the economy is closer to falling over than it is to going up."
Read full article... Read full article...
Wednesday, December 16, 2015
Did "Tight" Fed Interest Rates Policy Cause the Financial Crisis? / Interest-Rates / US Interest Rates
By: Robert_Murphy
Recently Senator Ted Cruz aggressively questioned Janet Yellen on the Fed’s possible role in causing the financial crisis and subsequent recession. In particular, he claimed that “in the summer of 2008” the Fed “told markets that it was shifting to a tighter monetary policy,” and that this announcement “set off a scramble for cash, which caused the dollar to soar, asset prices to collapse, and CPI [growth — RPM] to fall below zero, which set the stage for the crisis.” Cruz asked Yellen if she agreed with Bernanke’s view from his new book, in which he says the Fed made a mistake by not cutting rates in September 2008.
Wednesday, December 16, 2015
Consumer Prices: A Sticky Situation / Economics / Inflation
By: Gary_Tanashian
We have noted anecdotally that there is a creeping inflation in the system. It does not show up in commodities, which are in a post-bubble (ah, the good old ‘China story’ that was so vigorously promoted to a degree that would make a gold bug promoter blush) melt down. Crashing costs like that are providing the Goldilocks-like balance to rising costs within the economy.
This morning, the highly recommended Daily Shot had among its macro graphs a look at the “sticky” consumer price index. That got me to go over to the St. Louis Fed website and pull a couple different views of it. First, here is SLF’s description of the sticky index…
Read full article... Read full article...
Wednesday, December 16, 2015
UK Jobs: No Pay, No Play / Economics / Employment
By: Ashraf_Laidi
Today's release of the UK jobs figures confirms the suspicions of the doves at the Bank of England, with earnings (pay) growth continuing to decline, joblessness pushing higher for the fourth straight month even as the unemployment rate hit a fresh 7-year low of 5.2%.
Read full article... Read full article...
Wednesday, December 16, 2015
Junk Bond Market Crash Stock Market Warning! / Stock-Markets / Stock Markets 2015
By: Chris_Vermeulen
We are approaching the most anticipated and crucial week of the past seven years, and the global markets have been selling off. Last week, saw crude oil, junk bonds and the stock market competing with one another, while on their way down. Is there a connection between the three, or is it just a co-incidence that all three have fallen concurrently? Is the fall of one market, signaling a warning sign to the other(s)?
If you have any interest in either market, by way of investments, or if you are planning to become a part of the market, this article is for you. The junk bond markets are flashing a red signal, therefore, you should heed the warning.
Read full article... Read full article...
Wednesday, December 16, 2015
D-Day for Fed Fiat Credit System - Video / Interest-Rates / US Interest Rates
By: Mario_Innecco
Transcript Excerpt - December 16 2015 Wednesday it's the day will decide to hike interest rates
that's what most people think it's almost like a done deal so in my opinion
it's the Fed trying to deflate the biggest credit bubble amber and I guess
we don't have to go into details about that we all know that debt and credit
has been the highest ever USA national debt at almost 19 trillion so far it's
more than doubled since President Obama came to power so today will be the first
rate hike since I began its zero interest rate policy or its server or
Wednesday, December 16, 2015
Federal Reserve At End Of Monetary Road / Interest-Rates / US Federal Reserve Bank
By: GoldCore
The all important context for Federal Reserve’s interest rate decision, where the Federal Reserve is widely expected to hike interest rates for the first time in nearly a decade has been examined by the insightful Grant Williams. He is very skeptical of the Fed’s ability to continue to control markets much longer … and this is a gross understatement:
Read full article... Read full article...
Wednesday, December 16, 2015
Stock Market Expanding Bubbles / Stock-Markets / Stock Markets 2015
By: Barry_M_Ferguson
Thursday, 12/10/15, stock indices rose because (so all the pundits reckon) Fed Chair Yellen made a speech reinforcing her determination to begin raising interest rates on December 16. Friday, 12/11/15, the next day, stock indices plummeted because, well, for the same reason. In bubbles, indices can rise or fall for exactly the same reason.
Read full article... Read full article...
Wednesday, December 16, 2015
Fed Interest Rate Hike Stock Market Crash Bear Apocalypse? / Stock-Markets / Stock Markets 2015
By: Nadeem_Walayat
It's D-day for the stock market according to the bears when an Fed interest rate hike of 0.25% is expected to at least confirm a stocks bear market is already underway and even said will herald a stock market apocalypse crash, 'End Times', which has been consistently re-iterated by the consensus and BlogosFear since the August stocks plunge (correction). Though as the below chart illustrates that reality does not match the intensity of bear market rhetoric, that of double and triple tops, head and shoulder patterns, 5th waves and domed houses, all utilised each month as irrefutable proof with religious zeal that the stocks bull market is finally over, that this month has coalesced around today's FOMC meeting decision, with the apocalypse scheduled to occur at 2pm eastern time, 7pm UK.
Tuesday, December 15, 2015
Share Buybacks just another Wall Street Scam / Stock-Markets / Stock Markets 2015
By: Sol_Palha
Better a diamond with a flaw than a pebble without one.
Chinese Proverb
Wall Street has a new hobby use good money to create the illusion that all is well; only unlike most hobbies, the intent is to distort reality and reward lazy insiders for doing next to nothing. Gone are the days of actually trying to improve the bottom line, by improving efficiency, find new markets, etc.; now the idea is simply cut the supply of outstanding shares, thereby magically boosting the EPS. Why are executives doing this with such impunity? The “safe harbor” rule passed in 1982, essentially allows corporations to repurchase shares without having to face charges of manipulating the price of their shares. Before the passage of this rule, stock repurchases were next to zero. In fact, Senators Elizabeth Warren and Tammy Baldwin both share the sentiment that stock buybacks should be forbidden by the SEC because they are a form of market manipulation.
Read full article... Read full article...
Tuesday, December 15, 2015
Silver: Until Paper Currencies Stop Losing Value / Commodities / Gold and Silver 2015
By: DeviantInvestor
Alasdair McLeod wrote an excellent article in which he said,
“So if anyone asks you when you might take your profits in gold and silver, smile sweetly and just say, ‘When paper money stops losing its value.’”
When will paper money stop losing its value? I submit that unbacked fiat paper money will, based on history, never stop losing value – as long as it is backed by dodgy sovereign debt issued by governments descending deeper into debt ever year. A viable alternative is currency backed by gold and silver, but even though precious metals have been used successfully as money for centuries, there is far more profit for TPTB when they use the paper stuff. Consequently paper and digital currencies will not disappear anytime soon.
Read full article... Read full article...
Tuesday, December 15, 2015
Have You Considered What Wil Happen If the Fed DOESN’T Raise U.S. Interest Rates? / Interest-Rates / US Interest Rates
By: Rodney_Johnson
We’ve gotten it into our heads that Fed Chair Janet Yellen is on her way down from the mountain top carrying stone tablets etched with the details of a rate hike. We don’t know exactly what form it will take, but let there be no doubt – the financial gods have spoken, so a rate hike there will be!But it’s not that simple.
The Federal Open Market Committee (FOMC) is the group that determines monetary policy. This group must reach a consensus on policy changes before anything new can happen.
Read full article... Read full article...
Tuesday, December 15, 2015
Is This Just the Beginning of the Euro Debt Crisis? / Interest-Rates / Eurozone Debt Crisis
By: Harry_Dent
I've been shocked over how much QE and stimulus the central banks have signed on for in the last seven years, but they’re finally starting to reach their limit.The U.S. already did in 2014 when the Fed finally tapered. And this week, the markets are betting on a rate hike – never mind the trouble brewing in China, other emerging markets, and now Europe.
Read full article... Read full article...
Tuesday, December 15, 2015
Stock Market Due for a Pop-n-Drop? / Stock-Markets / Stock Markets 2015
By: Anthony_Cherniawski
It appears that SPX may do a pop-n-drop that may be over by or near 10:00 am. The reason is that the decline from 2080.33 has taken 42 hours so far. 10:00 completes the 43rd hour.
I have additional conflicts today. A dear friend of mine died and his funeral is later this morning. I may not return to my office until later this afternoon.
Read full article... Read full article...
Tuesday, December 15, 2015
Yorkshire Building Society New 3.68% Two-year Fixed Rate Mortgage / Housing-Market / Mortgages
By: MoneyFacts
Below is a new product, which has been rated ‘outstanding’ by Moneyfacts.co.uk, the highest rating we award.
Yorkshire Building Society has just launched a new two-year fixed rate mortgage priced at 3.68% until 31.1.18. This deal is for first and second-time buyers who borrow £50,000 up to a maximum of £500,000 at 95% loan-to-value (LTV). A fee of £975 is payable, of which £845 can be added to the mortgage.
Read full article... Read full article...
Tuesday, December 15, 2015
Dow Transports Re-Enters Stocks Bear Market, Caution Warranted / Stock-Markets / Stocks Bear Market
By: Christopher_Quigley
Arnold Toynbee “A Study of History”:
“Civilizations die by suicide not by murder”.
Very few people today know that between 1934 and 1961 the British historian Arnold Toynbee wrote “A Study of History” describing the rise and fall of the 23 civilizations he had identified in human history. In contrast to Oswald Spengler, who thought that the rise and fall of civilizations was inevitable, Toynbee maintained that the fate of civilizations is determined by their response to the challenges facing them. In fact the unifying theme throughout the book is challenge and response. One of the ground-breaking discoveries by Toynbee is the fact that there have been so many highly developed civilizations. Understandably in the West our history lessons focus on our own civilization with its roots in Greek and Roman cultures, but in addition there have been Chinese, Indian, Mayan, Islamic, Sumerian and Orthodox civilizations, to name but a few.
Read full article... Read full article...
Tuesday, December 15, 2015
Santa Claus…. Where’s My Interest? / Personal_Finance / Savings Accounts
By: MoneyFacts
Data from Moneyfacts.co.uk can reveal that rate reductions in the savings market are now outweighing rate rises for the first time since daily rate change monitoring began.*
In the month of November, Moneyfacts recorded 36 savings rate rises, with only one deal posting a significant increase of 0.80%. Disappointingly, these rises were eclipsed by the 73 rate reductions that took place over the same period, with some rates falling by a massive 0.86%.
Read full article... Read full article...