Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Thursday, May 31, 2012
Credit Continues to Shrink in Euroland / Interest-Rates / Credit Crisis 2012
By: Asha_Bangalore
Total monetary financial institutional (MFI) lending has dropped in five out of the last six months. In April, MFI lending fell 0.2% from a year ago after stalling in February and March (see Chart 1).
Wednesday, May 30, 2012
Growth in U.S. National Debt / Interest-Rates / US Debt
By: BATR
The one inescapable drag on the economy and every American taxpayer or government dependant is the interest obligation paid on the national debt. Indebtedness is nothing new to this country, but the inability to service the public debt stretches over the last half century. This trend is so disturbing that politicians spend every waking hour avoiding the consequences of the ultimate outcome, the demise of the currency. The reserve currency status that has allowed for effortless deficit spending has a day of reckoning. The final collapse of the global empire and superpower will smell more of financial evaporation than of a military defeat.
Tuesday, May 29, 2012
Espana en Fuego / Interest-Rates / Eurozone Debt Crisis
By: Ashvin_Pandurangi
What's really left to say about Spain, anymore? This 12th largest economy in the world now finds itself as close to financial meltdown as a country (other than Greece) can get, and it has gotten there by taking the most twisted and shady path that it could find. Ilargi wrote about this shadiness back on April 18 in his article, Spain, Land of Magical Financial Realism. In it, he discussed how the bank bailout fund in Spain was being funded by... the Spanish banks themselves, so as to allow the Spanish government to under-state its actual deficit/GDP ratio. Most of that "money", in turn, came from the ECB LTRO Part Dos, which gave out billions worth of 3-year loans to these banks and, in exchange, encumbered just about ALL of the (already toxic) collateral available in the Spanish banking system.
Saturday, May 26, 2012
U.S. Muni Bond Market Debt Default Tsunami / Interest-Rates / US Debt
By: EWI
The front edge of the coming bond default tsunami is clearly visible in our discussion of the burgeoning credit crisis in Europe. Less publicised, but every bit as important, is the debt burden that is smothering U.S. municipalities. CTC warned that muni bond tax-exemptions would "ultimately trap investors into a risky position," and EWFF has continually stated that defaults will rise as cushy municipal pensions and health benefits garden a bigger share of a decreasing tax base.
Saturday, May 26, 2012
Mervyn's Pringle Problem / Interest-Rates / Quantitative Easing
By: Adrian_Ash
Bank to Treasury: Forget credit easing. It's your debt that needs queasing...
UNLIKE PRINGLES tasty potato snacks, quantitative easing doesn't come with a resealable lid. So the famous sales line is only more true for central bankers:
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Thursday, May 24, 2012
U.S. Treasury Bond Teetering Tower Of Babel, Fed Stuck At 0% Forever / Interest-Rates / US Bonds
By: Jim_Willie_CB
The Biblical story is told of a tower built ever higher in order to achieve contact with the heavens, lest they be scattered upon the earth. They were scattered when the tower fell. Fast forward to today, where the earth has a multitude of tribes, languages, and several major alphabets. When the Lehman Brothers failure occurred, and the Fannie Mae and AIG activities were to be concealed under court orders, the land turned barren, and a financial plague befell the Western nations led by the United States. They were after all, the keepers of the ark (printing press for USDollars). But a plague of debt locusts was cast upon the US nation, with annual $1.5 trillion deficits. The Americans in their unending arrogance, chose to speak from the tower top and to proclaim 0% forever, suspending gravity. They have attempted to force free money to finance their USGovt debts, to preserve power, to ensure privilege, but in doing so they defy nature in testing gravity itself.
Wednesday, May 23, 2012
Fool Britannia / Interest-Rates / UK Debt
By: Jan_Skoyles
So, we started last week with the news that the great British pound, one of the world’s oldest currencies is increasingly being seen as a safe haven. This is alongside the US dollar and the Japanese yen.
Some seem to be surprised by the pound’s climb to safe-haven status, but it may not be that surprising.
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Thursday, May 17, 2012
After Spain, is Italy Next? / Interest-Rates / Eurozone Debt Crisis
By: Ian_R_Campbell
Why Read: Because now that Spain's economic woes are close to the center of world economic attention you need to focus on Italy - while still keeping Greece, Portugal, Spain and the Netherlands squarely on your ever more crowded radar screen.
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Monday, May 14, 2012
Greece, Discovering the "End" in "Extend & Pretend" / Interest-Rates / Eurozone Debt Crisis
By: Ashvin_Pandurangi
There was a rumor over the weekend that the Troika may be willing to relax the terms of the dreaded memorandum for the Greek government if it formed a "pro-European" coalition government and avoided new elections. This rumor is ridiculous on both fronts - 1) the Troika and Germany would NEVER make such a concession for fear that every single penny pledged to peripheral nations would become contingent on the outcome of national elections and, essentially, a gift with no conditions attached (something that would pit the German people against their crony, bankster-run government once and for all), and 2) the left-wing Syriza party in Greece would NEVER commit itself to the Euro while it continues to gain popularity each day before the new elections.
Sunday, May 13, 2012
U.S. Treasury Bond Market Forecast for Coming Week / Interest-Rates / US Bonds
By: Manas_Banerji
French election outcome was not much disturbing but Greece is again creating the fear due to their inconclusive result or it will be better to say that Greek voters voted against the bailouts and those austerity measures. German minister’s remark about Greece may fuel lots of calculations. Market is speculating that Greece may quit Euro but here the important thing is what the Euro zone authorities are thinking! Earlier I was confused about holding back of 1bn euros of rescue money but as situation is developing, now it is quite understandable.
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Saturday, May 12, 2012
Greece Exit, Euro-Zone Collapse, Spain and Portugal Will Follow Within 6 Months / Interest-Rates / Eurozone Debt Crisis
By: Nadeem_Walayat
This analysis continues on from my last article in light of the recent French and Greek elections where voters rejected economic austerity in favour of money printing Inflation stealth debt default as politically an smoke and mirrors Inflationary depression is being seen as far more palatable for populations than a deflationary depression slow motion economic collapse. However to be able to print money inline with the true state of the respective competitiveness of euro-zone economies, then these countries governments have no choice but to exit the euro-zone, or be forced out as they one by one fail to follow through on agreed austerity measures.
Saturday, May 12, 2012
Student Loans, The Next Bubble? / Interest-Rates / US Debt
By: Andy_Sutton
Since the housing bubble burst spectacularly in late 2007, many analysts have been actively seeking out the next likely explosion. Rest assured, it will be related to debt in some way. US Treasuries, credit cards, and potentially another disaster on Wall Street thanks to over-leveraging have all been mentioned as potential leading candidates. However, there is another bubble out there and it too is debt related. This one, in my opinion, has far greater consequences because it involves a group that is the least financially able to deal with the ramifications. I’m talking about student loans and the massive bubble that has been expanding for at least the past decade.
Saturday, May 12, 2012
Whe Are U.S. Treasury Bond Yields Going? / Interest-Rates / US Bonds
By: Tony_Pallotta
As the US Treasury curve sits near all-time highs the question on every investors mind is what happens next. Can Treasury yields move lower? In real terms when adjusted for inflation yields are negative. In other words you are losing money on an inflation adjusted basis to lend your money to the US Government.
Friday, May 11, 2012
Global Debt Crisis, There Is Not Enough Money On Planet Earth / Interest-Rates / Global Debt Crisis 2012
By: Ashvin_Pandurangi
No matter how you look at it, as The Automatic Earth and others have pointed out ad infinitum, in the end the US economy rests on two pillars: Jobs and Housing. They are where both all the good and bad in economic terms begin and end. Ben Bernanke and his Fed policies are majestically failing on both counts.
Tuesday, May 08, 2012
Developed Nations at the Precipice of Oblivion , as End of the Debt Supercycle Draws Near / Interest-Rates / Global Debt Crisis 2012
By: The_Gold_Report
Are developed nations across the globe at the precipice of oblivion? Yep, says pundit John Mauldin. Fresh after the announcement of a new joint venture with Casey Research and the conclusion of his own Strategic Investment Conference in Carlsbad, Mauldin spoke to The Gold Report. He believes that investors have a small window to save their investments from the end of the debt supercycle, but they'll have to move fast.
The Gold Report: What does your new partnership with Casey Research mean for investors going forward?
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Monday, May 07, 2012
The Golden Rule Reinterpreted / Interest-Rates / Global Debt Crisis 2012
By: Peter_Schiff
In an April speech in Berlin, Dr. Andreas Dombret, a member of the Executive Board of the Deutsche Bundesbank (the German central bank), offered a startlingly frank assessment of the current problems in Europe. Although his comments were meant to apply to the tensions and imbalances that exist between the northern and southern tier of the 17-member eurozone, they shed inadvertent light on the broader global economy.
Saturday, May 05, 2012
U.S. Treasury Bond Market Forecast for Coming Week / Interest-Rates / US Bonds
By: Manas_Banerji
Some sections of the market were looking for further stimulus by ECB or an assurance from Draghi. I think that type of assurance would act as a boost for market. But here Draghi has different approach, as he thinks that liquidity is abundant in the Euro zone. This time Draghi emphasized more on Growth, as I said in my past reviews that I am not sure how growth will come with lots of austerity measures and cuts! ECB hold its interest rate, which was already discounted.
Friday, May 04, 2012
Spain All Crisis, No Solutions for Savers / Interest-Rates / Eurozone Debt Crisis
By: Adrian_Ash
For Spanish savers, the financial pages are all crisis, no solution...
SPAIN'S financial crisis might be hardening the politics of capitalists vs. workers and the unemployed, but it's hardly benign for the first group.
Friday, May 04, 2012
The Fed and the ECB’s Hands Are Politically Tied… Bye Bye Market Props / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
As many of you know, my primary forecast regarding Europe is that the EU will be broken up and/or collapse within the coming months.
Friday, May 04, 2012
Merkel’s In Hot Water So Sorry Spain, No More Bailouts / Interest-Rates / Eurozone Debt Crisis
By: Graham_Summers
Spain, which is now at the forefront of the Great Western Debt Default Collapse, has opted to seek funding from the mega-bailout fund, the European Stability Mechanism (ESM) rather than going directly to the ECB or the IMF.
The reasons for this are clear: the IMF doesn’t have the funds (nor will it as the US won’t fund a European bailout during a Presidential election year). And the ECB is now backed into a political corner with Germany.
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