Best of the Week
Worst Stocks Bear Market Since the Great Depression
Credit Collapse, U.S. Treasury Yields Fall to Record Lows
UK Real Retail Sales Deflationary Trend Continues
More on Gold and the Reflation of Assets
Secrets to Stock Market Value Investing Profits - 20th Nov 08
Hyperinflation to Follow Deflationary Debt Unwind - 20th Nov 08
Exploding Global Stock Markets Hit by Economic Torpedo - 20th Nov 08
Stock Markets Look Set to Crash Through 2002 Lows - 20th Nov 08
Global Stock Market Crash Alert- Here We Go Again? - 20th Nov 08
Gold and Silver Obvious Price Maniupulation - 20th Nov 08
Falling Consumer Prices Good or Bad News for Consumers? - 20th Nov 08
U.S. Economy Reflation Challenge and LIBOR Deceptive Manipulation - 19th Nov 08
Economic Forecast, Peering into a Debt Ridden Future - 19th Nov 08
Misguided Bets On The Yield Curve Steepening - 19th Nov 08
What's Frightening Saudis and Iranians into Buying Gold? - 19th Nov 08
Stock Market Apocalyptic Crash Soon? S&P at the Tipping Point - 19th Nov 08
The Road to Financial Ruin: Unrestrained Government Spending - 19th Nov 08
Investing in Stocks During Scary Times - 19th Nov 08
US Capital Markets Portfolio Composition - 19th Nov 08
Spreading Global Recession Signals Caution for Investors - 18th Nov 08
G20 Central Banks Unite to Fight Economic Depression - 18th Nov 08
UK Inflation CPI Falls Sharply as Economy Heads for Deflation - 18th Nov 08
U.S. Treasury the Final Bailout - 18th Nov 08
What's ahead for Apple (AAPL), A Stock Worth Shorting? - 18th Nov 08
Worse than the Great Depression? - 18th Nov 08
Stock Market is Not in Uncharted Territory - 18th Nov 08
G20 Meaningless Statement and the Manageable Recession - 18th Nov 08
FINANCIAL PLANNING: My Guess Or Yours? - 17th Nov 08
Critical Week for Global Stock Markets and Economic Recovery - 17th Nov 08
U.S. Dollar Bullish Worlds Reserve Currency Dynamics - 17th Nov 08
The Ascent of Money and Descent of Niall Ferguson - 17th Nov 08
Citigroups Survival in Doubt as 50,000 Jobs Cut - 17th Nov 08
Flawed Central Banking System and Stocks Bear Market Bounce - 17th Nov 08
Gold Needs to Rise Above $838 to Fullfill Annual Minimum Bull Market Target - 17th Nov 08
Current Commodities Price Deflation to be Followed by Massive Inflation Later - 17th Nov 08
Stock, Commodities and Currency Futures Markets Analysis 17th November - 17th Nov 08
More Bailouts Coming, U.S. Automakers, Freddie Mac and Foreign Exporters - 17th Nov 08
The Brutal Truth About the Credit Crisis - 17th Nov 08
Stock Market Showing Signs of a Tradeable Low - 16th Nov 08
Peak Earnings and the Secular Stocks Bear Market - 16th Nov 08
Gold Long-term Bearish Projection Targets $480 - 16th Nov 08
G20 Economic Summit Changes Nothing - 16th Nov 08
Global Stock Market Crash Extended Leg Lower - 16th Nov 08
Extreme Stock Market Volatility as Corporate America Heads Towards Bankruptcy - 16th Nov 08
Stock Market Bear Still in Control - 16th Nov 08
Why the Dollar is Rising and Potential for Large Stock Market Rally - 16th Nov 08
US Dollar Bull Run, Gold, XOI, HUI, CBOE Put/Call Ratio - 16th Nov 08
G-20 Summit Politicians Blame Investors For Credit Crisis - 16th Nov 08
Bailout for GE But not Yet for GM - 15th Nov 08
End of the Era of Big Consumer Spending - 15th Nov 08
Hydrogen Energy, IEA-2008 World Energy, Climate Change and Fossil Fuel Depletion - 15th Nov 08
Hope for a Dismal Economy & Stock Market? - 15th Nov 08
Paulson's Blunders as Debt Securitization Market Remains Frozen - 15th Nov 08
Economic Forecasts and Analysis For U.S. Financial Markets (Nov 17-21) - 15th Nov 08
G7 Banking Systems Continue to Plunge into the Abyss - 14th Nov 08
Goldilocks Economy Turns into the Humpty Dumpty Economy - 14th Nov 08
The G-20's Secret Credit Crash Debt Solution - 14th Nov 08
Are We There Yet? Finding that Elusive Gold Stocks Bottom - 14th Nov 08
New Precedent for America : Financial Irresponsibility Pays - 14th Nov 08
Gold GLD ETF Impact on the Gold Market - 14th Nov 08
Consumer Spending Cutbacks Further Erode Retail Payrolls - 14th Nov 08
Gold Will Rise as Governments Reflate to Resurrect Economies - 14th Nov 08
U.S. Dollar Rallies Due to Global Destruction of Fiat Currencies - 14th Nov 08
Stock, Commodities and Currency Futures Markets Analysis 14th November - 14th Nov 08
Stock Market Rally Against the Primary Trend - 14th Nov 08
Stock Market Crash Count Update and Bullish Gold Stocks Divergence - 14th Nov 08
Japanese Stock Market Could Bounce in the New Year - 14th Nov 08

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September 08
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Topic: Interest Rates and the Bond Market

The new items published under this topic are as follows.

Interest-Rates

Thursday, November 20, 2008

Credit Collapse, U.S. Treasury Yields Fall to Record Lows / Interest-Rates / US Interest Rates

By: Mike_Shedlock

Best Financial Markets Analysis ArticleOnce again treasury bears who do not understand the implications of a collapse in credit are taking a beating as Treasury Yields Drop to Record Lows .

Treasury yields declined to record lows, with two-year notes dropping below 1 percent for the first time, as global stocks slumped and a deepening recession drove investors to the safest assets.

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Interest-Rates

Wednesday, November 19, 2008

U.S. Economy Reflation Challenge and LIBOR Deceptive Manipulation / Interest-Rates / Credit Crisis 2008

By: Jim_Willie_CB

Diamond Rated - Best Financial Markets Analysis ArticleA major challenge looms large on the immediate horizon. The US Economy must be reflated in order to avoid collapse. Debts have become a crippling factor. Liquidation of speculative trades coincides with economic retreat, and hedge funds are under attack by their creditors (largely Wall Street firms) while major companies shed workers by the tens of thousands. When asked about economic prospects, a standard answer lately of mine has been to observe important signals not of recession but of potential disintegration.

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Interest-Rates

Wednesday, November 19, 2008

Economic Forecast, Peering into a Debt Ridden Future / Interest-Rates / US Interest Rates

By: Mick_Phoenix

Diamond Rated - Best Financial Markets Analysis ArticleWelcome to the weekly report. This week we look at some longer term indicators that will help identify when a turning point in the economy has arrived and why you should cancel Christmas, or at least go back to its traditional meaning, forgoing the pointless consumerism that surrounds it.

Before we start, you may have wondered (or not) why the weekly report wasn't around. I have spent the past 3 weeks laying out the groundwork for an attempt to peer into the longer term future. Subscribers have seen all 3 articles, culminating in the new scenario. I have released the first 2 articles to the public, the final part will also be released but not for awhile yet.

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Interest-Rates

Wednesday, November 19, 2008

Misguided Bets On The Yield Curve Steepening / Interest-Rates / US Bonds

By: Mike_Shedlock

Best Financial Markets Analysis ArticleBloomberg is reporting U.S. Long-Term Treasuries Advance as Consumer Prices Plummet .
Treasuries maturing in 10 years or more, the most sensitive to inflation expectations, rose after a government report showed consumer prices dropped in October by the most on record.

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Interest-Rates

Saturday, November 15, 2008

Paulson's Blunders as Debt Securitization Market Remains Frozen / Interest-Rates / Credit Crisis Bailouts

By: Mike_Whitney

Best Financial Markets Analysis ArticleHenry Paulson's time at Treasury has been one pratfall after another. Even so, on Tuesday he managed to out-due himself. Paulson held a "surprise" press conference where he announced that the $700 billion Troubled Asset Relief Program (TARP) wouldn't be used to buy troubled assets after all.    Instead, the money will used to bail out insurance giant AIG, provide extra capital for the banks to hoard, and now (this is new part) give money to "nonbank financial institutions, like insurers and specialty-finance companies" so they can lend to credit-worthy consumers. (Isn't that why we gave money to the banks?)

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Interest-Rates

Thursday, November 13, 2008

Combating Credit Based Derivatives Deflation / Interest-Rates / Deflation

By: Mick_Phoenix

Diamond Rated - Best Financial Markets Analysis ArticleWelcome to An Occasional Letter. This week we pick up from the end of this article as we begin the process of peering into the future to assemble the next stage of the scenario I have followed over the past 6+ years.

However before we start I have recently had numerous e-mails asking to join my mailing list. I thank those people for their interest but I no longer run a mailing list since converting to a subscription only website. If you would like to know more, visit An Occasional Letter for details.

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Interest-Rates

Wednesday, November 12, 2008

How Low Will the Fed Funds U.S. Interest Rates Go / Interest-Rates / US Interest Rates

By: Hans_Wagner

On Wednesday October 29th, the Federal Reserve lowered the Fed Funds rate by 50 basis points to 1.0%. This comes on top of an earlier rate reduction on October 8, 2008 of 50 basis points. The rate is now at the level former Fed Chairman Alan Greenspan kept during 2003 and 2004. This raises the question can and should the Fed lower rates further?

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Interest-Rates

Wednesday, November 12, 2008

US Treasury Bonds Default Avoidance Means Dollar Death / Interest-Rates / Fiat Currency

By: Jim_Willie_CB

Diamond Rated - Best Financial Markets Analysis ArticleLIQUIDATION & USTBOND SUPPORT - The two main factors pushing up the US Dollar have been liquidation of speculative trades funded by it, and redemption of credit derivatives paid in it. These are not signs of any inherent investment in the US Economy itself, but rather its liquidation. Evidence abounds of severe deterioration within the United States, a collapse of confidence, a fall in business investment, ruin in retail demand, an avalanche of job loss, and a spread of corporate breakdown beyond the financial sector. Demands for nationalization have begun outside the financial sector in a wave certain to grow in strength and breadth.

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Interest-Rates

Tuesday, November 11, 2008

Corporate Industrial Bond Yields Strongly Support Economic Deflation Thesis / Interest-Rates / Deflation

By: Mike_Shedlock

Diamond Rated - Best Financial Markets Analysis ArticleAs one might expect in a credit crunch, default risk is rising. One measure of that risk is corporate bond yields. Let's take a look and see how various grades of bonds are performing.

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Interest-Rates

Tuesday, November 11, 2008

Credit Crisis Eases as Interbank Rates Hit Multi-year Lows / Interest-Rates / Credit Crisis 2008

By: Ashraf_Laidi

Best Financial Markets Analysis ArticleAlthough signs of easing credit strains are manifested in multi-year lows in interbank rates, the market turmoil has exasperated the already shaky cash situation of US auto manufacturers, retailers and shippers, forcing fresh waves of nation-wide layoffs, which would only feed off the negative loop from rising employment, falling consumption, lower earnings and eroding bank credit. Consequently, JPY retains the last word over the USD, while both low yielding currencies dominate dealing flows against European and antipodean FX as Asian and European markets are mired in prolonged downside, failing to break Mondays sell-off in the US.

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Interest-Rates

Tuesday, November 11, 2008

Glenn Hubbard Wannabe Fed Chairman Devises New Bailout Plan / Interest-Rates / Credit Crisis Bailouts

By: Brady_Willett

Although he didn't get the nomination to replace Greenspan, Columbia's Glenn Hubbard often comments on what he believes is the best path for policymakers to take. Yesterday Mr. Hubbard was at it again, offering a brief commentary on the Nightly Business Report:

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Interest-Rates

Monday, November 10, 2008

Deep Interest Rate Cuts to Treat the Threat of Economy Turmoil / Interest-Rates / Recession 2008 - 2009

By: Regent_Markets

Last week the Bank of England hit the headlines with an unexpected 1.5% rate cut. The move was largely pre meditated as a shock tactic to boost the ailing UK economy ahead of the all important Christmas period. Spreading the cut over a number of months would have had much less of an impact as it can take many months for the benefits of a rate cut to filter down to consumers. This is especially the case now with banks being slow to pass on cuts to customers.

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Interest-Rates

Monday, November 10, 2008

Massive Government Bailouts and Stimulus Packages to Hit Bond Markets / Interest-Rates / Credit Crisis Bailouts

By: Mark_OByrne

Gold rose 2.1% last week and is up another 2% in Asian and early European trading. Consolidation between $700/oz and $760/oz continues but the path of least resistance for the gold market is to the upside especially as market and economic conditions look set to worsen in the coming weeks resulting in more safe haven demand.

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Interest-Rates

Sunday, November 09, 2008

U.S. Treasury Bonds Set to Crash, Heres How to Make a Killing / Interest-Rates / US Bonds

By: Money_and_Markets

Best Financial Markets Analysis ArticleA new president … new ideas … and an old problem: How to pay for it all!

Mike Larson writes: It's been one heck of a week in American politics. We have a new president-elect in Barack Obama … a new approach to governing this country … and lots of new ideas about how to get the economy off its back.

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Interest-Rates

Sunday, November 09, 2008

Bank of England's 1.5% Interest Rate Cut to Prevent Severe Recession / Interest-Rates / Recession 2008 - 2009

By: Victoria_Marklew

Best Financial Markets Analysis ArticleThe Bank of England's Monetary Policy Committee (MPC) acted decisively Thursday morning, cutting the Bank Rate 150bps to 3.00% - its lowest level in over fifty years and the largest rate cut since the Bank gained full policy independence in 1997.

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Interest-Rates

Sunday, November 09, 2008

Bank of England Plays Interest Rate Catch-up as Sterling Suffers / Interest-Rates / UK Interest Rates

By: Ashraf_Laidi

Best Financial Markets Analysis ArticleThe Bank of England's shocker 150-bp cut to 3.00% (lowest level since 1955) against expectations of 50-bp cut is the biggest rate cut since the central bank acquired operation independence 11 years ago. The Swiss National Bank also surprised with an unscheduled 50-bp rate cut to 1.75%. The European Central Bank stuck with a widely expected 50-bp cut to 3.25%. ECB president JC Trichet says the bank does not rule out further rate cuts and cannot rule out sharp decline in inflation next year.

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Interest-Rates

Friday, November 07, 2008

UK Shock and Awe Interest Rate Cut / Interest-Rates / UK Interest Rates

By: Adrian_Ash

Best Financial Markets Analysis Article"I say, I say, I say – Did you hear about the joke of a central banker...?"

SHOCK and AWE was never supposed to be the Bank of England's approach.

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Interest-Rates

Friday, November 07, 2008

US Treasury Bonds to be Hit by $500 Billion Quarterly Flood / Interest-Rates / US Bonds

By: Money_Morning

Best Financial Markets Analysis ArticleMartin Hutchinson writes: The U.S. Treasury Department announced Nov. 3 that it intended to borrow a record $550 billion in the fourth quarter. That represents a staggering $408 billion increase over Treasury's borrowing estimate from early August and includes $260 billion for the recapitalization of U.S. banks.

Make no mistake about it: There will be enough U.S. Treasury bonds to choke on, as the government tries to finance this debt.

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Interest-Rates

Thursday, November 06, 2008

Global Interest Rate Cuts ECB .50% BOE 1.5% Equals Deflation / Interest-Rates / Deflation

By: Mike_Shedlock

Best Financial Markets Analysis ArticleThe Bank of England cut rates by 1.5% in a larger than expected move, The Swiss National Bank by 50 basis points in an emergency action when it was not even meeting, and the European Central Bank cut rates as expected by 50 basis points earlier today.
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Interest-Rates

Thursday, November 06, 2008

UK Interest Rate Cut by 1.50% / Interest-Rates / US Interest Rates

By: Nadeem_Walayat

The Bank of England surprised all market participants by cutting UK interest rates by 1.5%, far more than the consensus forecast of 0.5%, and even greater than the Market Oracle forecast cut of 1%.

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Interest-Rates

Thursday, November 06, 2008

UK 1% Interest Rate Cut / Interest-Rates / UK Interest Rates

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe MPC meeting is widely expected by the consensus to cut UK interest rates by 0.5% today, however as my recent articles (Credit Quake Persists Ahead of UK Interest Rate Cut of 1%?) have concluded that effectively Gordon Brown cracked the MPC round table in half when he stood up at the House of Commons despatch box on 8th October to announce the interest rate cut of 0.5%, which was followed by the Bank of England's announcement. This suggests that the Monetary Policy Committee is now no longer totally in the control of setting UK interest rates and therefore in many aspects control has been transferred back into the Governments hands.

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Interest-Rates

Wednesday, November 05, 2008

Abbey Raises Rates by 0.5% ahead of Interest UK Rate Cut / Interest-Rates / UK Interest Rates

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe Abbey in a slight of hand raised interest rates by 0.5% on its tracker range of mortgages in advance of Thursdays expected 0.5% UK base interest rate cut. This slight of hand of raising rates ahead of a rate cut then announcing cuts following the Bank of England rate cut is nothing new, for I first voiced this bad practice some 10 months ago in the article - UK Interest Rates Cuts Will Not Help the Housing Market. That the banks practice of quietly raising rates prior to interest rate cuts followed by loud announcements following the cuts thus little or no change in the mortgage rates.

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Interest-Rates

Tuesday, November 04, 2008

IMF Bailout of the United States Coming? / Interest-Rates / Credit Crisis Bailouts

By: Darryl_R_Schoon

Best Financial Markets Analysis ArticleEconomics has less to do with money than power. - Modern economics is not rocket science. Modern economics is a fraud. Metrics such as “monetary aggregates” and the “velocity of money” are merely devices meant to divert attention away from the fraud in progress.

Focusing on such metrics has been a critical component in the success of the bankers' extraordinary shell game of modern economics. But the current crisis has not only interrupted the bankers' confidence game, it has shed unexpected light on the precarious positions of those fleeced

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Interest-Rates

Monday, November 03, 2008

U.S. Bonds Weaker in advance of Massive Issuance of Bailout Treasury Bills / Interest-Rates / US Bonds

By: Levente_Mady

Best Financial Markets Analysis ArticleThe bond market lost 4 points last week as the yield on the 10 year note gravitated back to the 4% level that seems to be acting as a magnet of equilibrium these days. While the bounce in the stock market has put some pressure on US Treasury and other government bonds, the real driver for interest rates at the present time is supply. There are certainly a number of other problems that are supportive for the bond market, but all the bailouts, guarantees and government as well as Federal Reserve programs will have to be paid for. It will be done with a massive increase in the issuance of Treasury Bills, Notes and Bonds.

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Interest-Rates

Monday, November 03, 2008

Credit Quake Persists Ahead of UK Interest Rate Cut of 1%? / Interest-Rates / UK Interest Rates

By: Nadeem_Walayat

Best Financial Markets Analysis ArticleThe Bank of England is expected to follow last weeks U.S. interest rate cut of 0.5% by cutting UK interest rates at Thursdays MPC meeting, speculation is growing that in the face of the economic meltdown of the economy that is falling off the edge of a cliff, that the Bank will take the unprecedented action of cutting interest rates by a whole 1%. The problem here is that as I have observed and commented on these past few years is that the Bank of England's MPC is incompetent , having repeatedly failed in all respects, which is especially apparent in its primary objective of pegging UK inflation at CPI 2% and between the boundaries of 1% and 3%, therefore will the MPC be able to make the leap and cut interest rates by a whole 1% as the economy demands ? , read on...

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Interest-Rates

Sunday, November 02, 2008

Global Zero Interest Rate Policy and the "Impossible Economic Contraction" / Interest-Rates / Recession 2008 - 2009

By: Mike_Shedlock

Best Financial Markets Analysis ArticleThe global race to ZIRP is on. Let's recap the state of affairs of the mad march to zero interest rates.

Bank of Japan Cuts Rate to 0.3%

In an attempt to fend off a prolonged recession, the Bank of Japan Cuts Rate to 0.3% .

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Interest-Rates

Sunday, November 02, 2008

LIBOR Unfreezing as Fed Takes Aggressive Action to Boost Economy / Interest-Rates / US Economy

By: Prieur_du_Plessis

Best Financial Markets Analysis ArticleCNNMoney.com: Bernanke discusses future of Fannie and Freddie
“Federal Reserve Chairman Ben Bernanke said Friday that the federal government will need to continue to play a role in the future of the mortgage financing market.

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Interest-Rates

Saturday, November 01, 2008

Fed Desperate U.S. Interest Rate Measures  / Interest-Rates / US Interest Rates

By: Tim_Wood

Best Financial Markets Analysis ArticleThe Fed's action to either raise or lower rates has become a major focal point for the markets in recent years. It seems that the vast majority of the public believes that the Fed is actually controlling interest rates and as a result that they are controlling the credit and equity markets. For a week before the Fed meeting it seems that the entire global markets focus on “what the Fed is going to do.” Will they cut a quarter, will they cut a half or will they not cut at all? Then, after the meeting the talking heads and analysts sit around and try to analyze the meaning of their “Fed Speak.” This is a joke. I am about to show you the proof that the Fed follows the short-term credit market and that in reality they do not lead. The data simply does not support this widely held belief. I realize that this may come as a shock to you, but reality is what it is. The data speaks for itself.

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Interest-Rates

Friday, October 31, 2008

Interest Rate Conundrum Heralds More Stock Market Distress / Interest-Rates / Stocks Bear Market

By: Money_and_Markets

Diamond Rated - Best Financial Markets Analysis ArticleMike Larson writes: Step into my interest rate time machine for a minute, if you will. We're going back to February 16, 2005 — the day former Federal Reserve Chairman Alan Greenspan testified before the Senate Banking Committee.

The topic of the day was the broader economy.

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Interest-Rates

Friday, October 31, 2008

U.S. Fed Zero Interest Rate Policy Coming? / Interest-Rates / US Interest Rates

By: Mike_Shedlock

Best Financial Markets Analysis ArticleThe Fed did not want to cut the Fed Funds Rate below 2%. And because Congress recently granted authority for the Fed to pay interest on reserves, Bernanke thought incorrectly that he could keep rates above 2%. So much for that academic theory. Now many are wondering if ZIRP (Zero Interest Rate Policy) is coming to the Fed.

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Interest-Rates

Wednesday, October 29, 2008

U.S. Fed Anticipated 0.5% Interest Rate Cut / Interest-Rates / US Interest Rates

By: Ashraf_Laidi

Best Financial Markets Analysis ArticleThe main question is whether today's anticipated Fed rate cut will succeed in maintaining the current boost to global risk appetite, regardless of the size of the easing. Since the beginning of the market crisis 7 weeks ago, the Federal Reserve has proven more creative in its overall actions than surprisingly dovish in its rate cuts. At the last scheduled FOMC meeting, the Committee kept rates unchanged despite the collapse of Lehman Bros but offered a bridge loan to AIG. In keeping with current Modus Operandi, a 50-bp rate cut in the fed funds rate is the most likely scenario, while a 25-bp easing is more plausible than 75-bps.

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Interest-Rates

Tuesday, October 28, 2008

Pullback in U.S. Treasury Bonds Appears Complete / Interest-Rates / US Bonds

By: Mike_Paulenoff

The large 6-week coil pattern in the Lehman 20-Year T-Bond ETF (AMEX: TLT) hit its 3rd coordinate on the high side last Friday at 100.00 (off of the 10/17 low at 93.02), and since has pulled back to this morning's low at 96.02, which represents a 60% correction of the 10/17-10/24 upleg. The strength off of 96.02 suggests strongly that the pullback is complete and is turning to the upside to enter a new upleg that will retest and likely hurdle resistance between 100.00 and 100.86 -- on the way to 102.00.

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Interest-Rates

Tuesday, October 28, 2008

Global Economic Outlook Suggests Concerted Interest Rate Cuts / Interest-Rates / Global Economy

By: Prieur_du_Plessis

Diamond Rated - Best Financial Markets Analysis ArticleThe financial panic that began in early September has been a body blow to global business confidence and the global economy which, according to the Survey of Business Confidence of the World conducted by Moody's Economy.com , is now in recession.

How bad is the shape of the US and global economy?

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Interest-Rates

Thursday, October 23, 2008

Mortgage Interest Rate Resets May Fuel LIBOR Market Manipulation / Interest-Rates / Credit Crisis 2008

By: Money_Morning

Best Financial Markets Analysis ArticleShah Gilani writes:It's panic time for U.S. legislators, regulators, banks and lenders. More than $24 billion worth of adjustable-rate mortgages (ARMs) are expected to “re-set” to higher interest rates in November – boosting the likelihood of further home foreclosures.

And it gets worse. That increase in borrowing costs will spread to other parts of the global debt market, representing an across-the board threat to corporate, institutional and sovereign borrowers. If interest rates remain high and interbank lending remains tight, the credit crisis is not likely to recede.

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Interest-Rates

Wednesday, October 22, 2008

Investment Opportunities in Municipal Bonds? / Interest-Rates / US Bonds

By: Richard_Shaw

Diamond Rated - Best Financial Markets Analysis ArticleThe $2.66 trillion municipal bond market is embroiled in the overall credit market mess, creating an unusual complex of risks and opportunities.

The supply-demand forces in the municipal bond market have been unfavorable in the past year, causing prices to decline.

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Interest-Rates

Tuesday, October 21, 2008

Keynesian Economic Claptrap From PIMCO / Interest-Rates / Credit Crisis 2008

By: Mike_Shedlock

Best Financial Markets Analysis ArticleThe amount of total nonsense currently circulating on the so called Paradox of Thrift is staggering.

The paradox: An increase in saving, which is generally good advice for an individual during bad economic times, can actually worsen the macroeconomy causing a reduction in aggregate income, production, and paradoxically a decrease in saving.

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Interest-Rates

Tuesday, October 21, 2008

How LIBOR Threatened to Destroy the Global Banking System / Interest-Rates / Credit Crisis 2008

By: Money_Morning

Best Financial Markets Analysis ArticleMartin Hutchinson writes: largest financial crisis since the Great Depression has revolved around an interest rate that many U.S. investors are only now hearing about for the very first time: The London Interbank Offered Rate (LIBOR).

But if you understand that rate, and study the forces that have been influencing it, chances are very good that you can figure out how we can escape the current banking-sector mess without wrecking the entire world economy.

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Interest-Rates

Sunday, October 19, 2008

The Mechanism Of Capital Destruction / Interest-Rates / Credit Crisis 2008

By: Professor_Emeritus

Diamond Rated - Best Financial Markets Analysis ArticleAddress at the Annual Dinner of the
Committee for Monetary Research and Education, CMRE
on October 16, 2008
New York City


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Interest-Rates

Friday, October 17, 2008

Why Mortgage Interest Rates Are Rising Despite Government Actions! / Interest-Rates / Credit Crisis 2008

By: Money_and_Markets


Best Financial Markets Analysis ArticleMike Larson writes: The government is throwing everything … and I do mean EVERYTHING … at the credit and mortgage markets.

It has taken over Fannie Mae and Freddie Mac.

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Interest-Rates

Thursday, October 16, 2008

Debt vs Interest Rates Conundrum / Interest-Rates / US Debt

By: Michael_Pento

Best Financial Markets Analysis ArticleI've written before about the dramatic rise in fixed income rates that face investors in the very near future due to the funding issues associated with our entitlement programs coupled with the incalculable measures taken by the government in the past few weeks to stem the credit crisis. Those efforts ensure the amount of Treasury issuance will explode.

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Interest-Rates

Wednesday, October 15, 2008

U.S. Forcing Banks to Resume Lending at Bazooka Point / Interest-Rates / Credit Crisis Bailouts

By: Mike_Shedlock

Best Financial Markets Analysis ArticleFor now, you can force banks to take money, but you can't force them to lend it. Let's explore this theory starting with a look at the Drama Behind a $250 Billion Banking Deal .

The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left.

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Interest-Rates

Tuesday, October 14, 2008

US Treasury Bond Market Crash / Interest-Rates / US Bonds

By: Money_and_Markets

Best Financial Markets Analysis ArticleMartin here with an urgent update on these wild, wild markets.

The key factor many investors seem to be forgetting: While stock markets have enjoyed a historic rally, bond markets are suffering a dramatic decline.

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Interest-Rates

Tuesday, October 14, 2008

Treasury Bonds ETF Inverse Trend to Stock Market Indices / Interest-Rates / US Bonds

By: Mike_Paulenoff

Best Financial Markets Analysis ArticleTo some degree, the TLTs (Lehman 20 Yr T-bond, ETF) trades inversely to the equity indices like the SPYs (for instance); however, my sense is the recent upside explosion in the stock averages and the recent plunge in TLT prices have "corrected" and defused the bulk of that relationship, which if accurate, means that a new relationship is forming based less on flight-to-safety and more on the still-challenging (to put it mildly) economic fundamentals that will not be corrected any time soon.

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Interest-Rates

Monday, October 13, 2008

How Credit Crises Begin and End / Interest-Rates / Credit Crisis 2008

By: Clif_Droke

Diamond Rated - Best Financial Markets Analysis ArticleFrom the standpoint of investor sentiment the credit crisis has reached the point of maximum saturation. Every TV news program and political commentator, every newspaper and every magazine in town is writing about it. It is being depicted as a virtual apocalypse that can't be stopped.  For example, the headline for the latest cover of Time magazine reads: "The New Hard Times.” It features a photograph of a soup line from the Great Depression.

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