Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Saturday, September 25, 2010
Leveraging Junk Debt Off the Charts / Interest-Rates / US Debt
By: Richard_Daughty
The massive door of the Mogambo Bug-Out Bunker (MBOB) was locked, and I was taking a little break, leisurely looking through the periscope/range finder/fire-control module, calmly reconnoitering the perimeter and keeping an eye on the neighbors, watching them acting like they are innocently mowing their lawns and washing their stupid cars, but who are actually spying on me, like I am too stupid to notice their treachery and perfidy.
Friday, September 24, 2010
Fed Money Printing a Definition of Insanity, Doing the Same Thing and Expecting a Different Result / Interest-Rates / Quantitative Easing
By: Mike_Larson
This week, Federal Reserve officials did it. They jumped the shark. Crossed the Rubicon. Bought a ticket on the express train to financial Never Never Land. Whatever you want to call it.
I say that because Fed Chairman Ben Bernanke and the rest of the members of the Federal Open Market Committee opened the door to a new round of quantitative easing, or “QE2.” Specifically, they said (with the important passages bolded by me):
Read full article... Read full article...
Friday, September 24, 2010
U.S. Money Printing Presses at Warp Speed, Stealth Monetization of U.S. Debt / Interest-Rates / US Debt
By: LewRockwell
Gonzalo Lira writes: Insofar as money is concerned, governments and central banks should be kept as far away from one another as a pedophile from Dakota Fanning. If ever the twain should meet, very bad things would happen. This is because of the disparate natures of government, on the one hand, and the central bank, on the other.
Friday, September 24, 2010
Long Term Bonds, Inflation and Deflation / Interest-Rates / US Bonds
By: Tony_Caldaro
Been thinking about Bonds, inflation, deflation, etc recently. Everyone seems to have a different opinion these days. Checking around all I could find on long term Gov't Bond rates was at the St. Louis FED. Could not find anything elsewhere. After reviewing the charts of Long Term Gov'ts since 1925, Moody's AAA since 1919, and Moody's BAA since 1919 ... I found a pattern.
Thursday, September 23, 2010
Have You Considered International Bond ETFs For Income and Diversification? / Interest-Rates / International Bond Market
By: Ron_Rowland
In these turbulent times, plenty of investors just want steady income. Others realize they need to look outside the U.S. as they ride out the storm. Yet in a world where some once-stable economies are starting to look like emerging markets, they also see the need for diversification.
Wednesday, September 22, 2010
PIMCO's Bill Gross' $8.1 Billion Bet on Inflation / Interest-Rates / US Bonds
By: DailyWealth
Dr. Steve Sjuggerud writes: "Bill Gross's PIMCO made an $8.1 billion wager," Bloomberg news reported last week.
Bill's bet is simple: He's betting inflation will return to the U.S. in the next 10 years. And he's willing to risk billions on the idea.
Wednesday, September 22, 2010
FOMC Policy Statement, Fed's Level of Uneasiness Up Several Notches, Postpones Action / Interest-Rates / US Interest Rates
By: Asha_Bangalore
As expected, the target federal funds rate was left unchanged. President Hoenig of Kansas City cast the lone dissenting vote; he has taken the opposing stance in all meetings year-to-date.
Wednesday, September 22, 2010
UK Debt Interest Spiral Time Bomb Explodes in August / Interest-Rates / UK Debt
By: Nadeem_Walayat
The UK government borrowed a record amount of £13.3 / £15.9 billion in August (public sector net borrowing requirement), which brings total public sector net debt to £823 billion, 56% of GDP (excluding financial interventions - bank capital injections) / £935 billion (including financial interventions) 64% of GDP, which puts the economy within touching distance of breaking above £1 trillion for December 2010.
Tuesday, September 21, 2010
Don’t Get Bullied out of U.S. Bonds / Interest-Rates / US Bonds
By: Money_Morning
Jon D. Markman writes:
Bonds have provided a welcome safe-haven for investors seeking shelter from the financial maelstrom of the past two years, offering steady returns while stocks bounce up and down.
Now some analysts are afraid that once the selling of bonds begins it will be indiscriminate, and there will be a bloodbath. But that fear totally ignores the new investment reality in which we're living.
Read full article... Read full article...
Sunday, September 19, 2010
Was Stagflation Really Hyperinflation? / Interest-Rates / HyperInflation
By: LewRockwell
Gonsalvo Lira writes: In his new post, Gonzalo Lira analyzes the Oil Shock of '79, and the subsequent run up in inflation. He comes to some interesting conclusions about 1979, and how those conclusions might apply to today, if and when there is a run on Treasuries. He writes: "In both 1979 and today, dollars were poised to chase after commodities, following a triggering event. In '79, it was the fall of the Shah of Iran. In 2010, we are waiting for our moment to exit the Treasuries bubble. Therefore, one can look at the events of '79–'82 as a dress rehearsal for what I think will happen today, and in the immediate future – if and when the Treasury bond bubble pops."
Thursday, September 16, 2010
U.S. Treasury TLT ETF Downmove Nearing Completion? / Interest-Rates / US Bonds
By: Mike_Paulenoff
Let's have a look at the pattern that continues to unfold in the iShares 20+ Year Treasury Bond ETF (TLT). Very interesting and tricky set-up in the TLTs now. Let's notice that it plunged to new lows at 100.85 for the decline off of the 8/25 high at 109.50 and in so doing has broken the Apr-Sep up trendline at 102.15 (for a second consecutive session).
Read full article... Read full article...
Thursday, September 16, 2010
Jim Rogers Warns, United States Biggest Debtor Nation in History / Interest-Rates / US Debt
By: Videos
United States is now the largest debtor nation , not in the world , in the history of the world...no country has ever run up so much debt as we have in the US , this is not just a problem for our children and grand children judge , this is a problem for you for me and our parents , you know this is a problem that is hitting all of us in the face right now , those guys in Washington just worry about the next election , they worry to make sure they'll stick around , they do not care about you , they do not care about me , they care about getting their next pay check and not whether the country survives....etc...
Wednesday, September 15, 2010
If You Own These Popular Income Investments, Watch Out / Interest-Rates / US Bonds
By: DailyWealth
Income investments are on fire right now...
Take the MLP sector as an example. MLP stands for "master limited partnership." It's a special corporate structure used by about 100 small companies – mostly natural gas pipelines. MLPs can make excellent dividend investments. You can usually expect to earn around 9% a year in dividends from them.
Wednesday, September 15, 2010
Covered Bonds Hybrid Debt Securitization: The Solution to America’s Economic Ills? / Interest-Rates / Credit Crisis 2010
By: Money_Morning
Shah Gilani writes: When it comes to the global financial crisis and the Great Recession that followed, this could well be the ultimate irony: The Wall Street invention that got us into this mess may well be the only thing that can get us out.
I'm talking about securitization, a masterstroke of financial engineering in which assets are aggregated in order to reduce risk. Once heralded as the greatest financial innovation of modern times, abusive securitization practices instead generated a feeding frenzy of gross excesses that exponentially multiplied risk and drove the world to the brink of financial Armageddon.
Read full article... Read full article...
Tuesday, September 14, 2010
The Curse of Fiat Money, Preventing the Banking Industry from Shrinking / Interest-Rates / Fiat Currency
By: Thorsten_Polleit
It may come as a surprise to many, but the relative size of the US commercial-banking industry has not declined following the so-called credit-market crisis, which developed in the second half of 2007. On the contrary, it has increased since then. While nominal GDP rose 4.2% from the second quarter of 2007 to the second quarter of 2010, banks' total assets rose 18.4%.
Tuesday, September 14, 2010
UK Savers Hopes on Hold as Inflation Fails to Fall / Interest-Rates / Savings Accounts
By: MoneyFacts
Inflation figures released today show that the Consumer Price Index (CPI) has remained unchanged at 3.10%, still way above the Government’s 2% target.
To stop their savings pot effectively eroding away, a basic rate tax payer needs to find an account paying 3.88%, while a higher rate tax payer needs to find an account offering 5.17%.
Read full article... Read full article...
Tuesday, September 14, 2010
Does the Fed Ultimately Control U.S. Interest Rates? / Interest-Rates / US Interest Rates
By: Michael_Pento
In forecasting the consequences of current economic policy, many pundits are downplaying the risks associated with the surging national debt and the rapid expansion of marketable Treasury securities. Their comfort stems from the belief that a staggering debt burden will be manageable as long as interest rates remain extremely low; and, as they believe the Fed is in complete control of setting rates across the yield curve, they see no danger of rates ever rising past the point of comfort. Those who subscribe to this fairy tale forget that, in real life, there are many more hands on the interest rate steering wheel.
Read full article... Read full article...
Tuesday, September 14, 2010
Americans Going Out with a Bang, Using Credit Cards They Can’t Pay Back / Interest-Rates / US Debt
By: Mac_Slavo
Peter Schiff joins the CNBC talking heads panel on Fast Money September 8, 2010. (Video follows excerpts and commentary)
As usual, Schiff is a bull on gold and precious metals commenting that silver “is going a lot higher.” Though he didn’t have a specific number in mind, he sees a likely and continued uptrend that can reach levels much higher than where it is today. “I think silver is going to go, ultimately, fifty dollars an ounce, a hundred dollars an ounce, who knows how high it can go?” forecasts Schiff.
Read full article... Read full article...
Monday, September 13, 2010
The Federal Reserve’s Next Moves … / Interest-Rates / Central Banks
By: Larry_Edelson
We are now entering a period of time that I’ve been warning you about. A time when the majority begins to recognize that the U.S. and European economies are both plunging deep under water, drowning in debt …
While at the same time, leaders in both the U.S. and Europe face political nightmares … financial markets going haywire … gold soaring through the roof … and central banks beginning, yet again, to pull out their big guns.
Read full article... Read full article...
Saturday, September 11, 2010
U.S. Monetary System is in Serious Trouble / Interest-Rates / US Bonds
By: Bob_Chapman
There is no question the US monetary system is in serious trouble and the situation continues to deteriorate. The smug elitist owners of the system are not getting the desired results and there is great consternation among the players. Since 1913 in running US monetary policy the Fed has had one recession after another and two depressions. The second one is the one we are now in. The Fed’s creation was mainly to end recessions and depressions, something obviously they have been quite unsuccessful at.