Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Saturday, December 04, 2010
Massive Debt Monetization, The Failure of the Global Financial System / Interest-Rates / US Debt
By: Bob_Chapman
The price of commodities, particularly food and petroleum products, will be higher in the coming year, which will strain budgets more than ever for those who still have jobs. Unemployment will not get appreciably better and government debt will rise. Government is talking about raising the Social Security retirement age by three years, freezing payments and offering government guaranteed annuities in exchange for those of you that do have retirement plans. Two-thirds of those in and about to retire have only Social Security for 50% of their income. The money collected since 1935 is all gone, having been spent by past politicians. In fact, if you put all present and future commitments together you have a debt of $105 trillion.
Saturday, December 04, 2010
Whither Portugal, How Did they Go Bankrupt and Why Ireland is Like Texas / Interest-Rates / Global Debt Crisis
By: John_Mauldin
Ten Little Indians
Whither Portugal?
How Did You Go Bankrupt?
Why Ireland Is Like Texas
Why is it that the Irish must take upon themselves the debts of their banks, which in reality are debts owed to German and French banks? Why should the Germans bail out the Greeks and the Spanish? Is the spread of "contagion" starting to taint the debt of Italy and even Belgium, the home of the EU? This week we look over the pond (of the Atlantic) and wonder how all these things will end. As I noted last week, we are getting a string of not so bad news out of the US, so now there are really just two things in the short term to worry about (at least in terms of a positive US GDP): will Congress extend the Bush tax cuts and will Europe sort itself out?
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Friday, December 03, 2010
Credit Crisis in Europe, Teetering on the Edge of Collapse / Interest-Rates / Credit Crisis 2010
By: EWI
Crisis in Europe: Market moves around the world can impact your portfolio. So whether you know it or not, you probably have a stake in Europe's financial future. You must read this explosive new free report from our friends at Robert Prechter's Elliott Wave International. They've been anticipating and tracking the growing debt crisis in Europe, and they're giving away some of their most eye-opening forecasts and analysis for the region -- for free. Learn more and download your free 6-page report now >&g
Friday, December 03, 2010
ECB Held Hostage By Europe's Sovereign Debt Crisis / Interest-Rates / Euro-Zone
By: Money_Morning
Jason Simpkins writes:
European Central Bank (ECB) President Jean-Claude Trichet earlier this year resisted pressure to intervene when Greece's budget deficit spurred investor concerns about the viability of the Eurozone and its single currency, the euro. But a bond market sell-off forced Trichet's hand and the ECB began purchasing government debt.
Friday, December 03, 2010
Economic Ruination in Three Words or Less / Interest-Rates / Global Debt Crisis
By: Richard_Daughty
If you want some bad news, then Doug Noland, in his Credit Bubble Bulletin at PrudentBear.com, has some for you. He reports that that "Global yields are on the rise."
I was going to make a complimentary comment about how cleverly Mr. Noland conveyed such bad news in only five words; "Global yields are on the rise."
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Wednesday, December 01, 2010
Sovereign Debt Crisis Solution / Interest-Rates / Global Debt Crisis
By: Bryan_Rich
Last Thursday in a government declaration, German Chancellor Angela Merkel spoke about the debt problems in Ireland and other European countries. She said,
“Europe needs a new culture of stability,” and added, “A better monitoring system of the national budget would be needed for all European Union member countries.”
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Wednesday, December 01, 2010
Bond Markets Scream for Haircuts Today, Euro-zone Barbershops to Open in 2013 / Interest-Rates / Global Debt Crisis
By: Mike_Shedlock
Swaps are soaring in Ireland, Portugal, Spain, Greece, and now Belgium. The market has correctly figured out there will be haircuts on senior bank debts. The problem is the ECB wants a free lunch but no haircuts until 2013, hoping of course the need for haircuts goes away in a few years.
Central bankers cannot and will not win this battle of nerves. The market is bigger than the Central bank.
Wednesday, December 01, 2010
The Dual-Mandated Failures of the Federal Reserve / Interest-Rates / Central Banks
By: Richard_Daughty
I thought I knew everything about the foul Federal Reserve in that I knew they cause inflation in prices by deliberately creating too much money, which is the One Big Thing (OBT) that you do not want because of the social upheaval of people starving to death and rioting in the streets.
Tuesday, November 30, 2010
QE2, Beware the Perils of its Success / Interest-Rates / Quantitative Easing
By: Vitaliy_Katsenelson
There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen. … the bad economist pursues a small present good that will be followed by a great evil to come, while the good economist pursues a great good to come, at the risk of a small present evil. -
Frederic Bastiat (1801-1850)
Tuesday, November 30, 2010
Ireland Debt Crisis Bailout For the Banks, Subjugation of the Irish People / Interest-Rates / Global Debt Crisis
By: Philipp_Bagus
Europe is in turmoil once again. The sovereign-debt crisis threatens to spread from Ireland to Portugal and Spain. It all began with the financial crisis. Before the financial crisis, several governments of the eurozone, most notably those of Portugal, Italy, Ireland, Greece, and Spain (PIIGS), had been able to finance their deficits at artificially low interest rates. Some had accumulated unsustainable levels of public debts.
Monday, November 29, 2010
Can the Fed Become Insolvent? Should We Care? / Interest-Rates / Central Banks
By: Robert_Murphy
In light of Bernanke's plans to purchase $600 billion of longer-term government debt, many academic economists are beginning to worry: Could the Federal Reserve itself become insolvent? In this article I'll explain these fears and I'll argue that the Fed, with its printing press, cannot really go bankrupt the way other corporations can.
Monday, November 29, 2010
Debt Crisis New Phase Striking Now! Despite Bailouts! / Interest-Rates / Global Debt Crisis
By: Martin_D_Weiss
Sadly, though, even while most Americans were enjoying the holiday or hitting the malls, much of Europe was sinking deeper into a new, more severe phase of its sovereign debt crisis.
This crisis is unfolding despite Herculean rescues by the European Union, the International Monetary Fund and the U.S. Federal Reserve.
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Monday, November 29, 2010
Financial Contagion Could Spread to "Core" Eurozone Countries and the U.S. / Interest-Rates / Global Debt Crisis
By: Washingtons_Blog
It's not just the "peripheral" European countries which are in trouble.
As Ambrose Evans-Pritchard reported yesterday:
Read full article... Read full article...The escalating debt crisis on the eurozone periphery is starting to contaminate the creditworthiness of Germany and the core states of monetary union.
Monday, November 29, 2010
Global Sovereign Debt Default Bankruptcy Bailout and Contagion Risk Analysis / Interest-Rates / Global Debt Crisis
By: Nadeem_Walayat
This analysis seeks to update the global sovereign risk of bankruptcy following the developments of the past 9 months that have seen governments and economic policies change, economic austerity plans implemented or failure to implement, as well as the bailout of two Eurozone member countries with first Greece in May and now Ireland's Euro 85 billion bailout.
Saturday, November 27, 2010
Ireland E.U. IMF Bailout Loan 6.7% Interest Rate Shocker? Belgium Joins PIGIBS / Interest-Rates / Credit Crisis Bailouts
By: Nadeem_Walayat
There is widespread speculation in the mainstream press that Ireland's Euro 85 billion bailout loan could carry an interest rate as high as 7% with most suggesting 6.7%, which is far higher than the expected rate of 5% that Greece agreed to in May and currently averages at 5.2% and therefore represents an 33% premium and thus would place a far higher annual debt interest burden on Ireland.