Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Friday, January 27, 2012
Credit Crisis Perfect Storm, Robert Prechter Discusses What's Backing Your Dollars / Interest-Rates / Credit Crisis 2012
By: EWI
In this video clip, taken from Robert Prechter's interview with The Mind of Money, Prechter and host Douglass Lodmell discuss "real" money vs the FIAT money system, and what is backing your dollars under our current system. Enjoy this 4-minute clip and then watch Prechter's full 45-minute interview here >>
Thursday, January 26, 2012
Merkel Casts Doubt on Saving Greece, ECB insists on Profits on Greek Bonds / Interest-Rates / Eurozone Debt Crisis
By: Mike_Shedlock
Amazingly, smack in the midst of deal to save Greece from bankruptcy, the ECB not only insists on taking no losses on Greek bonds its holds, it wants a profit on them because it bought them at what seemed at the time to be a substantial discount. The discount was imaginary. The bonds were trading at 7% at the time.
Wednesday, January 25, 2012
The Demise of State Sovereignty: Pressures on the Euro Amidst Rising Debt Levels / Interest-Rates / Eurozone Debt Crisis
By: Bob_Chapman
We announced our belief a few weeks ago that the Fed loan to the ECB could with fractional banking be $10 trillion. This past week we found that Credit Suisse shares our ideas as well. We believe that what this move by the Fed and the ECB is telling us that this is probably it. We also ask again how can the banks in the LTRP repay the funds in a timely manner? No plan has been presented before or since, there is no plan. Again, just throw money at the problem. The only player really capable of saving Europe is Germany and they would destroy themselves in the process. Everyone should have seen this coming but no one did except a handful of insiders. The resultant use of funds since the ECB distribution is hardly even mentioned in the media. It is a big dark secret.
Wednesday, January 25, 2012
The EU Gives a Lesson in How Not to Restructure Sovereign Debt / Interest-Rates / Eurozone Debt Crisis
By: David_Urban
Debt yields appear to be coming off with the exception of Greece, where the EU is now attempting to strong arm creditors once again with respect to the interest rate on the New Greek debt.
What the EU failed to realize is in that their rush to rescue the banking sector and bail out Greece they have created a bifurcated market in European sovereign debt. The Greek bailout will only apply to private holders of Greek debt, excluding pension funds, the EU and IMF from the bailout.
Tuesday, January 24, 2012
Greek Private Bondholders Reject Greece 'Haircut' Debt Default Deal / Interest-Rates / Eurozone Debt Crisis
By: Mike_Shedlock
Reuters reports Euro zone ministers reject private bondholders' Greece offer
Read full article... Read full article...Euro zone finance ministers Monday rejected as insufficient an offer made by private bondholders to help restructure Greece's debts, sending negotiators back to the drawing board and raising the threat of Greek default.
Tuesday, January 24, 2012
How to Work Out of the Long and Painful Debt Deleveraging Process / Interest-Rates / Global Debt Crisis 2012
By: John_Mauldin
This week we look at a report called “Working Out of Debt,” about debt and deleveraging, from the McKinsey Global Institute. This is a well-done summary of their longer paper, which has been updated, called “Debt and deleveraging: Uneven progress on the path to growth.” I discussed the original paper both in my regular letter and in Endgame. It is one of the best, most definitive pieces on the topic I have read. For those trying to understand how the deleveraging process will affect their particular world, I think it is a must-read. I have been spending more and more time thinking about the whole process of deleveraging, and am coming to think deleveraging is the critical and fundamental factor shaping the economic environment and impacting every decision countries and businesses are faced with. This paper was done by Karen Croxson, Susan Lund, and Charles Roxburgh; and they are to be especially commended for their insight and work.
Friday, January 20, 2012
UK Gold and Real Interest Rates, A Free Nation Drowining in Debt / Interest-Rates / UK Debt
By: Adrian_Ash
Take record-high debt, add record-low interest rates, and what do you get in gold...?
SECOND ONLY to Japan, the UK now wears the greatest debt burden of any major economy today – in total, more than 5 years' entire economic output.
Friday, January 20, 2012
Roubini Says Greece Will be a Credit Event, Regardless of Debt Deal / Interest-Rates / Global Debt Crisis 2012
By: Bloomberg
Bloomberg Exclusive: Nouriel Roubini and Ian Bremmer spoke with Bloomberg Television's Margaret Brennan about the state of the global economy.
Roubini said that the "probability of a recession in the United States is lower than 60 percent right now." On Europe, he said that even if an agreement is reached on Greece, "there are going to be so many holdouts that then they'll have a problem" and "either way you're going to get a credit event."
Read full article... Read full article...
Friday, January 20, 2012
Marc Faber: Still Predicting U.S. Treasury Bond Bubble Will Burst / Interest-Rates / US Bonds
By: Bloomberg
Marc Faber, publisher of the Gloom, Boom and Doom report, spoke to Bloomberg Television's Sara Eisen and Erik Schatzker and said that investors have created a "bubble" in the "highest-quality" government bonds and should move to equities.
Faber said, "People feel so insecure that they say, 'I'd rather be in a Treasury in America with almost no yield or in Germany with negative yield and get my money back.' But it doesn't make them a good buy in the long term."
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Friday, January 20, 2012
Eurozone Debt Crisis, The Reality of the European Downgrades / Interest-Rates / Eurozone Debt Crisis
By: Money_Morning
Jack Barnes writes:
It turned out to be a ruinous Friday the 13th for Europe last week.
After the close, Standard & Poor's downgraded nine of the sovereign states in the European Union (EU).
That included dropping Austria and France to AA+ status from their formerly lofty AAA rating.
Read full article... Read full article...
Monday, January 16, 2012
Central Banks Transferring Risk From Private Sector onto Taxpayers / Interest-Rates / Credit Crisis 2012
By: Chris_Ciovacco
With last Friday’s downgrades of European debt, the pressure from leaders, such as French President Nicholas Sarkozy, on central banks to print more money will increase. The concept of free markets is coming into question as government intervention is increasing at an alarming rate.
Monday, January 16, 2012
Marc Faber - U.S. Treasury Bonds Should be Rated at Junk / Interest-Rates / US Bonds
By: Videos
Marc Faber - US bonds should be rated junk status on CNBC during the Euro-zone credit ratings downgrades announcements.
Sunday, January 15, 2012
To Solve Europe's Debt Crisis You Must Solve Three Problems, Else its the End of Europe / Interest-Rates / Eurozone Debt Crisis
By: John_Mauldin
One of the interesting things about being in Hong Kong is that I get to see the weekend edition of the Financial Times 12 hours early. And the headlines were not all that pleasant. As I promised last week, we will cast our eyes to Europe and ponder what is in store for Europe for the year and the next five years. And what do we read on page 2? The "ECB raps revisions to draft a fiscal pact." Seems they feel there are too many loopholes, which will make the document meaningless … somewhat like the treaty they have now. And we further learn that "Greek default threat grows as talks falter." Seems there is a lack of agreement on how much of a haircut the investors ought to take, and the Greeks don't want to guarantee any future debt, just in case they need to default some more in the future. But they do want the €15 billion they need to keep the debt machine running for a few more months.
Saturday, January 14, 2012
Credit Ratings Downgraded France Regrets Abusing Britain as it May Beg for UK Bailout Cash / Interest-Rates / Eurozone Debt Crisis
By: Nadeem_Walayat
Nine Euro-zone countries have been downgraded by U.S. credit ratings agency S&P, most of whom to junk status with the biggest hit to the Eurozone being the downgrade of France from AAA to AA which has resulted in a political storm in France as President Sarkozy's hopes of being re-elected in April 2012 have now gone up in smoke.
Saturday, January 14, 2012
The U.S. Government Is Bankrupt / Interest-Rates / US Debt
By: Casey_Research
Doug Casey, Casey Research writes: Everyone knows that the US government is bankrupt and has been for many years. But I thought it might be instructive to see what its current cash-flow situation actually is. At least insofar as it's possible to get a clear picture.
As you know, the so-called Super Committee recently tried to come up with a plan to cut the deficit by $1.5 trillion and failed completely. To anyone who understands the nature of the political process, the failure was, of course, as predictable as it was shameful. What's even more shameful, though, is that the sought-after $1.5 trillion cut wasn't meant to apply to the annual budget but to the total budget of the next 10 years – a fact that is rarely mentioned.
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Friday, January 13, 2012
ECB's Draghi Frames Debt Crisis Issues / Interest-Rates / Eurozone Debt Crisis
By: Axel_Merk
ECB President Mario Draghi continued to impress with his very direct style during the European Central Bank's (ECB) first press conference of the year. While not lowering interest rates or announcing further easing measures, he made it clear that the ECB is "ready to act" should the environment deteriorate. Our takeaways:
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Friday, January 13, 2012
2012 Markets Will be a Repeat of 2011, Favor Italian Government Bonds Over Nation's Bank Debt / Interest-Rates / Eurozone Debt Crisis
By: Bloomberg
Boaz Weinstein, founder of Saba Capital and former co-head of credit trading at Deutsche Bank, spoke exclusively to Bloomberg TV's Stephanie Ruhle about the CDS market and outlook for 2012.
Weinstein said that "we do have a long position in Italy" and the markets this year will "be a repeat of 2011."
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Wednesday, January 11, 2012
End of the Debt Super Cycle, 2012 Market Forecasts / Interest-Rates / Global Debt Crisis 2012
By: The_Gold_Report
What do investors need to be watching out for in 2012? More Eurozone drama? Record gold highs? A hard landing in China? The U.S. Global Investors team addressed these questions with Endgame: The End of the Debt Supercycle author John Mauldin in a Jan. 5 Outlook 2012 webinar. The Streetwise Reports editors highlight some of the expert insights.
Monday, January 09, 2012
Unpredictability Impact on Global Economy, Fed QE3 Won't Produce the Outcomes We Want / Interest-Rates / Quantitative Easing
By: Bloomberg
PIMCO CEO and co-CIO Mohamed El-Erian spoke with Bloomberg Television's Betty Liu, Dominic Chu and Michael McKee about Europe's crisis, the U.S. economy and where to invest safely in this environment.
El-Erian said that the Fed "doesn't have enough policy instruments to deal with the challenges facing the economy" and that QE3 will not work. On investing opportunities, he said that "In the short term, the U.S. dollar is the best place."
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Monday, January 09, 2012
Paul Krugman is Dead Wrong: Debt Matters / Interest-Rates / US Debt
By: Money_Morning
Shah Gilani writes:
Paul Krugman, the Princeton University economics professor, Nobel Prize winner, and regular New York Times op-ed contributor says, "Debt matters, but not that much."
Not only is he off the reservation on this one, but he's completely fallen off his high horse.
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