World from Berlin – ‘Last Euro-Crisis Taboo Broken’
“The unique exceptions have begun piling up in Europe. That will do little to strengthen foreign investors’ faith in Europe.”
The business daily Handelsblatt writes:”The currency union has committed a breach of trust. It weighs especially heavy because the euro states have already secretly been rehabilitating their economies at the expense of depositors. Low interest rate policies help bring down the national debt, but at the [...]
10 Things You Need To Know Before The Opening Bell
Markets sell-off across the world, Wal-Mart reports earnings
Asian markets sold off in overnight trading with the Shanghai Composite falling nearly 3 percent following a selloff in the resource sector on weaker commodity prices, and on concerns about liquidity in the market. Europe is getting slammed and U.S. futures are lower.
Euro area composite index of services and manufacturing PMI fell to 47.3 in February, from 48.6 the previous [...]
by WashingtonsBlog
Forget the Housing, Bond or Derivatives Bubbles … Fraud Is the Biggest Bubble of All Time
The housing bubble which burst in 2007 or so was the biggest bubble of all time.
Many argue that the bubble in U.S. bonds has surpassed the housing bubble as the largest ever.
Of course, given that the derivatives market is more than a thousand trillion dollars, and that is is backed by thousands of times less collateral, a good case can [...]
Max Keiser
Tuesday, December 11, 2012
We look at the latest BIS warning of a global credit bubble caused by zero percent interest rate policies meant to appease the angry hidden people in the shadow banking system. In the second half, Max Keiser talks to David Smith of GenevaBusinessInsider.blogspot.com about the Swiss currency peg, the global game of honesty limbo in the financial sector and hoping that midnight never comes for Alice [...]
from Russia Today:
Max Keiser and Stacy Herbert look at the latest BIS warning of a global credit bubble caused by zero percent interest rate policies meant to appease the angry hidden people in the shadow banking system. In the second half, Max Keiser talks to David Smith of GenevaBusinessInsider.blogspot.com about the Swiss currency peg, the global game of honesty limbo in the financial sector and hoping that midnight never comes for [...]
by Michael
Last week the mainstream media hailed QE3 as the “quick fix” that the U.S. economy desperately needs, but the truth is that the policies that the Federal Reserve is pursuing are going to be absolutely devastating for our senior citizens. By keeping interest rates at exceptionally low levels, the Federal Reserve is absolutely crushing savers and is systematically destroying Social Security. Meanwhile, the inflation that QE3 will cause is going to [...]
Even before the crisis, there were some who stressed that monetary policy should keep an eye on asset bubbles and the growth of credit.
This column argues that the policy of inflation targeting, used widely in the 1990s and 2000s, did indeed lead to excessive credit growth that eventually bred financial instability.
As numerous studies over the last two decades have shown, interest rate policies of a large number of central banks [...]
With just 100 days left until the U.S. presidential election, investors are beginning to make bigger bets on which candidate will carry the day.
One analysis concludes that last week’s sharp three-day market surge can only mean that Wall Street is banking on a victory from Republican Mitt Romney.
That’s the logical interpretation one can draw from a rally amid conditions that otherwise would demand a selloff, Morgan Stanley chief U.S. equity strategist [...]
With just 100 days left until the U.S. presidential election, investors are beginning to make bigger bets on which candidate will carry the day.
One analysis concludes that last week’s sharp three-day market surge can only mean that Wall Street is banking on a victory from Republican Mitt Romney.
That’s the logical interpretation one can draw from a rally amid conditions that otherwise would demand a selloff, Morgan Stanley chief U.S. equity strategist [...]
by GoldCore
Today’s AM fix was USD 1,567.75, EUR 1,261.47, and GBP 1,008.98 per ounce.
Yesterday’s AM fix was USD 1,567.50, EUR 1,255.31, and GBP 1,003.39 per ounce.
Silver is trading at $26.93/oz, €21.77/oz and £17.39/oz. Platinum is trading at $1,406.50/oz, palladium at $575.20/oz and rhodium at $1,190/oz.
Volatile trade yesterday saw gold surge nearly $20 after news that the ECB was considering entering the monetary twilight zone of NIRP or negative interest rate [...]
For our quote of the day, we go to none other than the Fed’s favorite mouthpiece, the WSJ’s Jon Hilsenrath:
“Fed officials have been frustrated in the past year that low interest rate policies haven’t reached enough Americans to spur stronger growth, the way economics textbooks say low rates should… Multiply the fruit of cheap credit across millions of households—with healthy portions of interest savings spent on goods and services—and the [...]
WASHINGTON (AP) — Despite recent signs of weakness, the U.S. economy isn’t likely to slip back into a recession, Warren Buffett said Tuesday. He also said both political parties deserve blame for the federal government’s failure to reduce the deficit.
Speaking at the 25th anniversary dinner of the Economic Club of Washington, the billionaire investor said he sees the odds of a renewed recession as “very low.”
But he warned that could change if [...]
Everyone in the precious metals/mining stock sector is looking for anything to grab onto for optimism. Nothwithstanding that this type of sentiment always demarcates a bottom, and notwithstanding the fact that the basic fundamentals underpinning the precious metals – like catastrophic Government deficit spending and disastrous Central Bank negative interest rate policies – get stronger by the day, here’s an excellent harbinger of a potential bottom/upturn in the metals/miners: Soros has quadrupled [...]
kingworldnews
With continued uncertainty in global markets, today King World News interviewed legendary James Dines, author of The Dines Letter. Dines told KWN the world will see a “Coming Great Depression.” He also discussed whether gold and silver remain in ‘Super Major Uptrends.’ Here is what Dines had to say about what is taking place: “All nations are now suppressing their own interest rates. People who are looking for income either have [...]
By Greg Robb, MarketWatch
WASHINGTON — Two experts on monetary policy warned Saturday that the Federal Reserve should be wary of keeping monetary policy too easy for too long.
With Fed Chairman Ben Bernanke looking on from the audience, Masaaki Shirakawa, the governor of the Bank of Japan, and Jaime Caruana, the general manager of the Bank for International Settlements, said extremely easy policy is appropriate in response to [...]
Uploaded by CapitalAccount on Mar 1, 2012
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Federal Reserve Chairman Ben Bernanke was on Capitol Hill today delivering his report card, talking economic forecasts and headwinds while defending the Fed’s “accommodative monetary policy.” Speaking of report cards, we look at how even the failing marks of central bankers and other economic decision makers get glossed over by the mainstream media and ultimately forgotten by the public. Top on our list, [...]
Uploaded by LeakSourceArchive on Feb 24, 2012
BY VICTORIA MCGRANE AND JON HILSENRATH
The Federal Reserve has operated almost entirely behind closed doors as it rewrites the rule book governing the U.S. financial system, a stark contrast with its push for transparency in its interest-rate policies and emergency-lending programs. While many Americans may not realize it, the Fed has taken on a much larger regulatory role than at any time in history. Since the Dodd-Frank [...]
VICTORIA MCGRANE AND JON HILSENRATH
The Wall Street Journal
February 22, 2012
The Federal Reserve has operated almost entirely behind closed doors as it rewrites the rule book governing the U.S. financial system, a stark contrast with its push for transparency in its interest-rate policies and emergency-lending programs.
While many Americans may not realize it, the Fed has taken on a much larger regulatory role than at any time in history. Since the Dodd-Frank [...]
By Wolf Richter www.testosteronepit.com
The FOMC’s often and clearly stated policy of creating sufficient inflation has been effective: up 3.8% from August 2010 and up a breathtaking 36% from January 2000. But there are winners and losers.
Tax revenues? Huge winner. Yes, inflation is taxable. If we bought a stock in early 2000 for $100, and we sold it today for $136, we’d pay taxes on a [...]
CNBC.com
At a time when things were supposed to be getting better they are instead turning worse: Commodity prices are eating into consumer spending, historically low interest rates haven’t done a thing to help housing, and, most worrisome, the job market rebound has been stopped in its tracks.
Is it too early, then, to talk about a double dip? Probably.
Economists busy ratcheting down their forecasts for [...]
via WSJ:
By LUCA DI LEO
Federal Reserve Chairman Ben Bernanke in April will start holding quarterly, televised news conferences, in the central bank’s latest effort to better explain its actions.
Fed policies have drawn increasing fire in recent years from lawmakers, foreign policy makers and others. Issues include the central bank’s interest-rate policies during the housing bubble, its reaction to the financial crisis and its current [...]
by C.J
“I believe tha banking institutions are more dangerous to our liberties than standing armies.If the Ameican people allow private banks to control the issue of their currency,the banks and corporations that will grow around the banks will deprive the people of all ther property until their children wake up homeless on the continent their fathers conquered“. Thomas Jefferson (1743-1826)
I would rather live [...]
by Sunny
All Zombie Banks and Insurers are in the same boat but for accounting gimmicks, extend & pretend policies+ delay and pray tactics of the Govts all over in the Western world.
The value of ALL those MBSs (assets) aka Toxic assets at Banks’ and Fed’s balance sheet have also LOST VALUE, but ‘miraculously STILL valued’ at prices before 2008 – M to fantasy! How long [...]
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