• 03/04/2015 - 16:46
    What people and central bankers do not understand, is that you can't devalue your way to prosperity. Absolutely nothing has changed since the last crisis. The same too big too fail banks have only...

Borrowing Costs

Tyler Durden's picture

ECB Will Cut Rates To Minus 3%: JP Morgan





Should a tail event such a deflationary spiral or Grexit occur, limits on ECB asset purchases will put Mario Draghi at a disadvantage as other central banks race to the bottom. JP Morgan says this will force the ECB to cut interest rates for cash deposits to minus 3% while the dollar will appreciate by 20%, reaching parity with euro in 2015.

 
Tyler Durden's picture

Poland Cuts Rates More Than Expected, 21st Central Bank "Policy Ease" Of The Year





Just hours after India's 'surprise' rate cut (which saw the SENSEX surge and then dump to close red), Poland has surprised the market with a bigger-than-expected rate cut. Despite two-thirds of econmomists expecting a mere 25bps cut, the Polish Central Bank slashed its benchmarket 7-day rate to just 1.5% - the lowest on record. Today's cut "makes up for inaction in previous months" after Poland held rate flat in January and February (but echoes Poland's Oct 'surprise' greater-than-expected ease of 50bps. Polish stocks dropped on the news (but recovered), banks are weaker, and the Zloty is selling off on this news (pushing back towards record lows)...

 

 
Tyler Durden's picture

"We Are Failing To Deliver On Our Obligations As Americans"





"...we are failing to deliver on our obligations as Americans, that is undeniable.  We are allowing the political class to plunder our wealth, negate our freedoms and desecrate our Constitution.  Sadly we have become the immoral populace our founding fathers warned all future generations not to become... The duty and obligation is ours and so too then are the failures and successes of our society. We are 15 years in to what is absolute denial regarding the competence of our nation’s policymakers. Yet here we sit, silent and indifferent to our own demise; so completely antithetical to the character of a true American."

 
Tyler Durden's picture

3 Things - High Yield Warning, Yellen's Employment & Economy





While the economy is showing some signs of impact from falling oil prices, a port strike in California, weak global demand for exports and an exceptionally cold winter; the markets are pushing all-time highs. There is much hype being placed on the ECB's plans for launching QE in March, however, much remains to be seen as to just how effective it will be in a negative interest rate/deflationary enviroment. But then again...there is always "hope."

 
Tyler Durden's picture

Subprime Car Loan Bubble 2.0 Full Frontal





"... should interest rates rise later this year, some households and corporations may find themselves overleveraged as interest rates and borrowing costs rise. When looking at interest rate sensitivity by loan product, we see that auto loans rates are the most sensitive to changes in the fed funds target rate. In addition, we can see that for each one-percentage point rise in the fed funds rate, the interest rate on a 48-month new car loan rises 0.61 percentage points."

 
Tyler Durden's picture

There's No Way Out Now: "That Choice Was Yours"





The overwhelming mainstream media message continues to be everything is strong and the future is absolutely as bright as ever, as measured by the all time high markets; but the facts and the data clearly tell a different story. While memories are short, 2008/9 (and 199/2000) taught us that pundits will always tout the ‘everything is great’ story until it is too late. They laugh and ostracize anyone who attempts to rock the boat with a message of reality. And they do it to deter others from delivering such a message. That message is that there exists no catalyst mechanism to pull us out of this economic slumber. So you can listen to and laugh along with the ‘all knowing’ pundits or you can take heed of history and protect yourself now. But do remember the choice was yours. You will have nobody to blame but yourself when and if it all comes tumbling down and you were too busy laughing.

 
Tyler Durden's picture

Greek Game Theory: "The Risk Of A Negative Outcome Is Higher Than The Market Thinks"





Essentially, our analysis suggests that there is a large divergence in the perceptions of both sides but the rational choice is to hold to their respective positions. In other words, our analysis of the payoffs suggest that the EU won’t offer debt relief and Syriza won’t back down from demanding it. Our fear is that the markets, inured by previous bailouts, expect the Greeks to cave, leaving the risk of an unexpected negative outcome in Europe is probably higher than what is currently being discounted. At the same time, EU policymakers are assuming that contagion will not occur, which may not be accurate.

 
Tyler Durden's picture

Rising Interest Rates & Long Term Stock Returns





There have been ZERO times that the Federal Reserve has entered into a rate hiking campaign that did not have a negative consequence...

 
Tyler Durden's picture

Puerto Rico Is Not Greece, But Their Bonds Are Yielding Almost The Same





While PRexit is yet to hit the headlines, Puerto Rico bonds joined an illustrious club of ne'er-do-wells today with its 10Y yield spiking above 10%...

 
GoldCore's picture

Gold Falls 2.5%, Silver 3.5% After 'Dodgy' Jobs Number





Given the spate of recent poor economic numbers in the U.S. and internationally, analysts are beginning to question the veracity of some of the U.S. government's economic statistics including their jobs numbers today. “The official unemployment rate, which cruelly overlooks the suffering of the long-term and often permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie ...”

 
GoldCore's picture

ECB ‘Blackmails’ Greece – Bail-Ins, Bank Runs and “Grexit” Likely





ECB putting interests of banks over those of people … again.

People versus the banks ... time to take a stand ...

 
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