US Is Stiffing China One Trillion Dollars! Indeed, the US and Japan have been in a race to the interest rate bottom. Both want 0% financing because both are playing very nasty currency games with everyone on earth. The US public has been fed a lot of rank propaganda this last 5 ...weekend commentary - Madam Bovary's credit has been cut off ! The last three cycles of rate hikes/rate drops have made some very serious bubbles. In the Dot Com bubble, we saw stocks soar and then crash. Frantically, the Fed dropped interest rates to only 1% and we got the epic housing bubble. ... Market Week Wrap up In a separate move, the ECB altered its collateral rules, downplaying the change as a “mini” interest rate hike and calling the measure “better risk management.” The "refined" rules, will take effect in February, 2009, include a 12% ... Drill For Oil And Cut Interest Rates ... hitting Americans with a massive tax hike. Another might be the Fed getting spooked by the jump in energy- and food-led inflation, and jacking up interest rates from the current 2% level in an effort to cool things off. ... Robbing people with inflation You can see Volcker's interest rate hikes back there between 1980 and 1982, along with Greenspan's cuts from 1990 to around 1994. You can also see episodes where inflation outperformed interest rates - for a small time in 1980 and a ... Economic Outlook: The ECB Caught in a Cleft Stick However, we acknowledge that there is a significant risk that the Riksbank after the aggressive statements in the inflation report in July will raise interest rates again in spite of the bleak growth prospects and lower commodity prices ... Real Interest Rates Are High The solution to this mess is to eliminate the Fed and let the market set rates instead of letting the Fed micro-manage the economy to death. Two More Measure Of High Real Interest Rates There is still two more measure one can look at to ... Why Stocks And Commodities Are All Falling Down This causes the famous 'see saw' action of the US Fed suddenly hiking interest rates and then equally rashly dropping them as fast as possible. This action is increasingly destabilizing any notion of adjusted common values between all ... Wall Street retrenches as recession fears intensify For the Federal Reserve, which has held rates steady at 2.0 percent while hinting at a rate increase, the payrolls report “confirms that the notion of a rate hike to combat inflation is fanciful — the question now is rather whether the ... Downturn will drag on, forecaster says However, if the tide of oil prices does not rise again, then its poisonous ripples through the economy may be manageable. And that means the Fed can temper its rate hikes, chilling but not freezing growth, he said. ...
|