Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Wednesday, November 24, 2010
Debt Crisis Destabilises Irish Government, E.U. Scrambles to Prevent Contagion From Spreading / Interest-Rates / Credit Crisis Bailouts
By: Money_Morning
Don Miller writes:
Ireland's debt crisis has destabilized its government and is fueling speculation that the $118 billion (85 billion euros) bailout may not be enough to keep it from spreading to other Eurozone countries including Portugal, Spain and Italy.
Nervous financial markets yesterday (Tuesday) continued to suggest global investors lack confidence that some governments will be able to manage their debt and cast doubt on the European Union's (EU) ability to contain the crisis.
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Tuesday, November 23, 2010
Bernanke Is Making the Global Currency & Debt Crisis Worse / Interest-Rates / US Debt
By: Casey_Research
Bud Conrad, Chief Economist, Casey Research writes: The Fed is a corrupt and powerful institution, and Chairman Bernanke is making the global crisis worse. His new speech given last week in Europe was terribly misguided and will upset markets as the Chinese and Germans won't ignore his challenges. Bernanke’s interpretations of the markets have been wrong since before he was appointed to head the Fed, and his actions are doing nothing but aggravating the situation.
Tuesday, November 23, 2010
Muni Bond Crisis, The One Thing You Must Know / Interest-Rates / US Bonds
By: Q1_Publishing
It’s a scary time for seemingly safe municipal bonds.
The Boston Globe warns muni bonds “have been sinking like a rock” and the fall “signals turmoil ahead.” The New York Times suggests it is “akin to the one that brought Greece to its knees.” Time magazine warns they’re the “next financial land mine.” The mainstream media is all over the emerging muni bond crisis.
Tuesday, November 23, 2010
How to Profit as China Dumps Japan's Debt / Interest-Rates / Global Debt Crisis
By: Money_Morning
Keith Fitz-Gerald writes:
As a veteran trader, I have a tendency to look past the day's top headlines. That's why a recent Bloomberg News story - which stated that China sold a net total of 769.2 billion yen ($9.24 billion) worth of Japanese debt in September - really caught my eye.
Monday, November 22, 2010
Does the Fed Create Money? / Interest-Rates / Quantitative Easing
By: Michael_Pento
Certain deflationists have recently gone on record saying that the increase in the Fed's balance sheet is meaningless with regard to creating inflation because our central bank can't print money, it can only create bank reserves. The problem with their view is that it both disregards the definition of money and ignores the process of creating bank reserves.
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Monday, November 22, 2010
Global Monetary Policy - Negligence, Ignorance or Fraud? / Interest-Rates / Global Financial System
By: The_Gold_Report
Recovery? What recovery? With more money in circulation than ever before in history, Midas Letter Editor James West asks, "Where's all the money?" The government would have us believe a "recovery" is underway and that we're all firmly back on the road to prosperity. "A recovery is underway," says James, "but those elements of the global economy that are recovering aren't in the economic interests of most planetary citizens." In this Gold Report exclusive, James looks beyond media talking heads and rosy governmental economic forecasts to ponder the eventual consequences of a regulatory framework that is fractured and impotent.
Monday, November 22, 2010
Robert Prechter Explains Money, Credit and the Federal Reserve Banking System, Part II / Interest-Rates / Central Banks
By: EWI
This is Part II of our three-part series "Robert Prechter Explains The Fed." You can read Part I here -- and come back later this week for Part III.
Monday, November 22, 2010
U.S. Treasury Bond Yields Explode Higher, Opportunity to Buy 10 Year Bonds / Interest-Rates / US Bonds
By: Levente_Mady
The bond market sold off a little more last week. Not only did the Treasury market sell off quite sharply over the past few months, but other sectors in the fixed income space got hit even harder. It appears that the market has been de-sensitized to all the sovereign problems of the basket case European countries. Financial markets just shrug nonchalantly when headlines of another Irish or Greek bail-out come across the tape. The sector that was perhaps even uglier than the European PIIGS over the past couple of weeks were the US municipal bonds. In our new cozy world, investors will need to start getting used to the idea that government bonds might not be as infallible or default proof as previously thought and priced. Meanwhile stocks remain close to 2 standard deviations expensive to bonds according to the Fed model I follow.
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Sunday, November 21, 2010
Roubini being Roubini, Central Banks Have Mountains More Leverage Than Lehman or Bear Ever did / Interest-Rates / Global Debt Crisis
By: Trader_Mark
With the market on another of its rocket ships as every asset on earth is backstopped by a central banker or sovereign government (which is in turn backstopped by a central banker), Mr, Nouriel Roubini is not getting the same air time or rock star status as he had a few years ago. That said, he is always an interesting mind to listen to ... and since we share many thoughts of the future, of course I want to share ;) As Nouriel says - who is going to backstop the central banks? Mars? ;) (if you look at their balance sheets they have mountains more leverage than Lehman or Bear ever had - but no problemo I guess as we have full faith and trust in their Socrates like actions)
Saturday, November 20, 2010
Higher Interest Rate Yields Impact on Gold, Metals and Other Commodities / Interest-Rates / US Interest Rates
By: Jeb_Handwerger
Every precious metals investor should be concerned about China raising its rates and rising yields. Rising rates in one of the fastest growing economies will affect precious metals investors. Changes in the rates affect stock prices. China is leading the world and we can see the fears are profound as sell offs this week were much stronger that any of the relief rallies. If China’s market corrects then the commodity market which was fueling the equity market could experience a severe correction. It is a domino effect.
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Friday, November 19, 2010
Robert Prechter Explains The Fed, Interest Rates, Quantitative Easing (QE2), Monetary Stimulus / Interest-Rates / Quantitative Easing
By: EWI
The ongoing financial crisis has made the central bank's decisions -- interest rates, quantitative easing (QE2), monetary stimulus, etc. -- a permanent fixture on six-o'clock news.
Yet many of us don't truly understand the role of the Federal Reserve.
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Friday, November 19, 2010
Fed Money Printing Triggers Bond Market Crash / Interest-Rates / US Bonds
By: Mike_Larson
It’s always gratifying when the mainstream media picks up on a theme you’ve been banging away at for weeks. And boy is that happening now. Just get a load of the headlines we’ve seen in recent days:
Read full article... Read full article...“Fresh Attack on Fed Move; GOP Economists, Lawmakers Call for Abandoning $600 Billion Bond Purchase” — Wall Street Journal, November 15
Friday, November 19, 2010
How the Fed Has Fooled Us with Quantitative Easing / Interest-Rates / Quantitative Easing
By: Money_Morning
Shah Gilani writes:
With a second round of "quantitative easing" underway, the U.S. Federal Reserve wants us to believe that it is doing its duty as the nation's central bank – promoting maximum employment, keeping a lid on inflation and making sure that long-term interest rates remain at reasonable levels.
This is known as the Fed's "dual mandate," since the inflation and interest-rate objectives are really the same goal.
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Friday, November 19, 2010
German Bund Bond Bulls Are Retracing: No Reversal Yet / Interest-Rates / International Bond Market
By: Seven_Days_Ahead
Is the Long Bull market in the Bund over?
The first time the Euro zone Sovereign debt crisis centred on Greece erupted Government Bond markets rallied hard including the Bund. Although the crisis was termed the Euro zone Sovereign debt crisis, it was really focused on several peripheral Euro zone members, which apart from Greece, included Ireland, Portugal, Spain and others.
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Thursday, November 18, 2010
QE2 Backfires, Collapse in Irish and U.S. Bond Markets / Interest-Rates / Global Debt Crisis
By: Gary_Dorsch
“Oh what a tangled web we weave when first we practice to deceive,” said Sir Walter Scott. The Republican Party enjoyed a major victory in the congressional midterm elections, winning back control of the House of Representatives and gaining seats in the Senate. Republican leaders are giving the Tea Party movement a lot of credit for their success, and one of its high profile leaders, Kentucky’s Senator-elect, Rand Paul declared, “We’ve come to take our government back.”
Thursday, November 18, 2010
Where Are the Bond Vigilantes? Rise of the Dollar Vigilante / Interest-Rates / US Bonds
By: Jeff_Berwick
Last seen in full force in the inflationary early 1980s, bond vigilantes were shadowy figures who were said to have rebelled and swore to keep central banks and governments honest by raising long term interest rates whenever the authorities kept their own interest rates too low, or let budget deficits grow out of control.
Yet now, with interest rates at near zero percent and budget deficits in the US stretching the boundaries of belief, not a peep.
Thursday, November 18, 2010
European Debt Crisis 2, E.U. Has New Candidates for Bankruptcy / Interest-Rates / Global Debt Crisis
By: Pravda
A problem enforcing experts to talk about «European debt crisis-2» has gathered. According to the poll made by Bloomberg agency more than 50 percent of respondents from among international investors consider default of Ireland as possible, almost 40 percent consider such a scenario as possible for Portugal. All that leads to impetuous cheapening of the European currency, experts say.
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Thursday, November 18, 2010
Ireland Being Forced to Become a Debt Slave Nation / Interest-Rates / Euro-Zone
By: Submissions
If Europe's single currency fails, so would the Union itself. The warning comes from the EU president, who was speaking ahead of the meeting of the Eurozone's finance ministers. Portugal has warned it could be forced out of the Eurozone, and Ireland is also being urged to use European bailout money to prevent bankruptcy. But Financial analyst Max Keiser says going to the IMF for help would be even worse.
Wednesday, November 17, 2010
Bernanke in Big Trouble, Global Investors Prepare to Dump Trillions of Dollars / Interest-Rates / US Bonds
By: Gary_North
Ben Bernanke is in trouble. Big trouble. Bigger trouble than any Federal Reserve Chairman has ever been in.
There is a cartoon video all over the Web that discusses "quantitative easing." It is a riot. This is very, very bad for Bernanke. When the public starts laughing at a senior government bureaucrat, he is in trouble.
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Wednesday, November 17, 2010
Why Buying Bonds is a Bad Idea / Interest-Rates / US Bonds
By: Richard_Daughty
If there are two things that you can count on, it is that you have got to be pretty quick to get the last piece of pizza before I snag it, and that I am never remiss in telling people that buying bonds at these insanely-low yields is the Exact Wrong Thing (EWT) to do.
Unfortunately, my latest "student" was the cashier at the grocery store, who, it turns out, knows absolutely squat about what bonds are, although she admits that she has heard the word before.
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