Keyword: interest

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  • Should the United States Abandon the Federal Reserve System?

    03/09/2017 8:07:43 PM PST · by Tolerance Sucks Rocks · 54 replies
    Economics Wire ^ | March 9, 2017 | Viliyana Filipova / Mr. Conrad
    The Federal Reserve gives us the freedom to buy things now that we would otherwise have to wait for.In looking at the Federal Reserve, it is important to note that this is a money system, not just a group of people sitting in a conference room controlling everything having to do with the US dollar. The Fed is a system just like the government of the US is a system. What that means is that no one controls it, and that it is much bigger than any one person or group of people could ever control. They can guide it,...
  • Berkeley's campus Republican club sees surge of interest following Milo debacle

    02/03/2017 10:05:52 AM PST · by Lonely Bull · 20 replies
    KTVU ^ | Feb 02 2017
    BERKELEY, Calif. .(KTVU) - U.C. Berkeley Police officers were standing by Thursday evening, for the weekly meeting of the Berkeley College Republicans. It is the organization that invited alt-right firebrand Milo Yiannopolous to campus the night before. His appearance was cancelled when organized agitators invaded a peaceful protest, setting fires and breaking windows at the Student Union venue. "Milo had a right to speak, Milo should have been allowed to speak," declared club President Jose Diaz, to an overflow club meeting of some thirty students, some spilling into the hall. UCB estimated the campus property damage at $100,000. But the...
  • Wall Street Journal Premium Content Subscription Only: Government Bond Rout Deepens on Trump’s...

    11/15/2016 4:12:29 AM PST · by expat_panama · 14 replies
    Wall Street Journal Premium Content Subscription Only ^ | Nov. 14, 2016 4:02 p.m. ET | Min Zeng and Christopher Whittall
    The sudden surge in long-term interest rates has investors speculating once again about a turn in the long decline for bond yields—with a lot at stake for companies and consumers. Many U.S. mortgage rates are tied to 10-year bond yields, and higher yields can mean higher borrowing costs for companies. Rising rates make the U.S. dollar more attractive, risking capital flight out of developing countries. Bond yields shot up again Monday. The benchmark 10-year U.S. Treasury note touched 2.30%, up from a close of 1.867% on Election Day. That move would rank among the sharpest jumps for a similar period...
  • Clinton Attracts Special Interest Groups

    09/18/2016 8:21:37 AM PDT · by Ubetterubet129 · 5 replies
    Randyhallrants ^ | 9/18/16 | Randy Hall
    LAS VEGAS (AIP) - If campainging has become a game of capturing special interest groups, then presidential hopeful Hillary Clinton would appear to have a leg up opponent Donald Trump with at least one cabal -the Bulimic and Anorexic Men of America (BAMA). "We love Hillary," said BAMA spokesman Melvin Fischer. "Anytime I've had an exceptionally good meal and contemplate actually digesting it I just pop one of Hillary's porn videos in my DVD player and I'm hurling in no time."
  • Here’s where all the Fed officials stand on an interest rate hike

    09/13/2016 3:39:41 AM PDT · by expat_panama · 28 replies
    Yahoo Finance ^ | September 12, 2016 | Justine Underhill
    Today marks the last day of speeches from Federal Reserve officials before they gather to discuss monetary policy and a potential rate hike at the Sept. 20-21 Federal Open Market Committee (FOMC) meeting. In the final speech before the quiet period begins, Fed Governor Lael Brainard assured the markets that she wasn’t in a hurry to raise rates. Given that low unemployment has failed to increase inflation “the case to tighten policy preemptively is less compelling,” Brainard said. “My main point here is that in the presence of uncertainty and the absence of accelerating inflationary pressures, it would be unwise...
  • Why low interest rates are now doing more harm than good

    09/03/2016 8:21:58 AM PDT · by expat_panama · 22 replies
    The Telegraph ^ | 2 September 2016 • 9:00pm | Andrew Sentance
    Since the financial crisis, we have become used to living in a world of low interest rates. The official Bank of England interest rate was cut to 0.5pc over seven years ago and now it has been reduced further to 0.25pc. Until recently, it was possible for long-term investors to earn better returns and protect themselves against inflation by investing in government bonds. That is no longer the case. In 2010, a 20-year UK government bond was still offering an annual yield of 4pc, significantly above the 2pc inflation target. Yields dropped to between 2.5pc and 3pc following the euro...
  • Jackson Hole: the three tough questions central banks must ask themselves

    08/23/2016 4:20:56 AM PDT · by expat_panama · 13 replies
    The Telegraph ^ | 22 August 2016 • 5:32pm | Matthew Lynn and women who control the global monetary system get together for three days to debate the challenges facing the world economy – and how they might use monetary policy to fix it. This year’s title is “Designing Resilient Monetary Policy Frameworks for the Future”... ...Here are three good ones to start with: is quantitative easting actually working? Have we broken the banking system? And isn’t it time to update economic models that no longer tell us much about the real world? First, why isn’t QE working the way it was meant to? For a long time, central bankers were...
  • Central Banks Now Selling US Debt at Record Pace

    08/18/2016 11:12:36 AM PDT · by milton23 · 16 replies
    Daily Signal ^ | 8/18/16 | William T. Wilson
    In the first six months of 2016, foreign central banks sold a net $192 billion of U.S. Treasury bills, notes, and bonds. This is more than double the pace from the same time last year. China, Japan, and Brazil were the leaders in selling U.S. debt. With the U.S. debt running at approximately $19.4 trillion, this could be problematic. A large selloff of U.S. bonds would decrease their price, or in other worlds, increase domestic interest rates in general (bond prices and interest rates always move in the opposite direction).
  • Interest costs will make up entire deficit in five years, White House projects

    02/09/2016 10:16:20 AM PST · by aimhigh · 42 replies
    MarketWatch ^ | 02/09/2016 | Greg Robb
    According to the latest White House budget projections, the government's interest costs are expected to more than triple to $787 billion by 2026, as interest rates rise, from $223 billion in 2015. By 2025 and 2026, the government will spend more on interest costs than all non-defense discretionary outlays. Under the White House budget, the national debt will increase from $19 trillion to more than $27 trillion over the next decade.
  • Is The Fed "Seriously Considering" Negative Interest Rates?

    02/04/2016 9:57:02 AM PST · by Former Proud Canadian · 36 replies
    Zerohedge ^ | February 4, 2016 | Tyler Durden
    The Fed may "seriously consider" negative rates after moving rates back to zero, reintroducing forward guidance and making "stronger pleas" to Congress for fiscal policy action as there are complications for money markets, according to BofAML strategist Mark Cabana. This would not be a total surprise as Mises Institute's Joseph Salerno warns recent Fed commentary suggests they want to test-drive negative interest rates... In 2016, the Fed's annual stress test on banks will include a scenario in which the interest rate on the three-month U.S. Treasury bill becomes negative in the second quarter of 2016 and then declines to -0.5%,...
  • In shocking move, Japan adopts negative interest rate as deflation fight falters

    01/29/2016 3:27:36 AM PST · by TigerLikesRooster · 52 replies
    Japan Times ^ | Jan 29, 2016
    In shocking move, Japan adopts negative interest rate as deflation fight falters The Bank of Japan unexpectedly adopted a negative interest rate policy Friday, stunning investors with a move aimed at shielding the country's sluggish economy from volatile markets and slowing global growth. The BOJ said it would use a three-tiered system to charge for excess reserves parked with the institution, an aggressive policy pioneered by the European Central Bank that penalizes banks for holding cash and encourages them to loan it out. "The BOJ will cut the interest rate further into negative territory if judged as necessary," the central...
  • US to pay Iran $1.7 bn in debt and interest (dating to the Islamic revolution): Kerry

    01/17/2016 9:34:21 AM PST · by NormsRevenge · 36 replies
    AFP on Yahoo ^ | 1/17/16 | AFP
    Washington (AFP) - The United States is to repay Iran a $400 million debt and $1.3 billion in interest dating to the Islamic revolution, Secretary of State John Kerry said Sunday. The repayment, which settles a suit brought under an international legal tribunal, is separate from the tens of billions of dollars in frozen foreign accounts that Iran can now access after the end of nuclear sanctions. But the timing of the announcement, one day after the implementation of the Iran nuclear accord, will be seen as pointing to a broader clearing of the decks between the old foes. US...
  • Why Owning a House is Financial Suicide

    11/12/2015 11:23:52 PM PST · by Up Yours Marxists · 100 replies
    News.Com (Australia) ^ | November 13, 2015 08:32 GMT | James Altucher
    OWNING your own house is as much the Australian dream as the American dream, and it's one that feels increasingly out of reach for many. But when one user on Quora pondered whether it was ultimately better to rent or own your own home, blogger and investor James Altucher penned this highly controversial response: I am sick of me writing about this. Do you ever get sick of yourself? I am sick of me. But every day I see more propaganda about the American Dream of owning the home. I see codewords a $15 trillion dollar industry uses to hypnotise...
  • Federal Reserve Interest Rate Decision: Janet Yellen, FOMC Leave Rates Unchanged

    09/17/2015 11:06:00 AM PDT · by tcrlaf · 44 replies
    IBT ^ | 9-16-2015 | Jessica Menton
    In one of the most widely anticipated Federal Reserve decisions in decades, the U.S. central bank left interest rates unchanged Thursday. The Fed's pronouncement to leave rates at historic lows—where they’ve been since roughly the start of the Great Recession in 2008—signals that the U.S. economy has yet to fully recover from the near collapse. Market professionals are now looking ahead to a press conference from Fed Chair Janet Yellen at 2:30 p.m. EDT, searching for further hints as to the timing of the Fed’s future course of rate hikes. “Uncertainty from the Fed has been the biggest issue,” Stephen...
  • U.S. Equity Futures Slip as Fed's Rate Decision Looms

    09/17/2015 5:37:33 AM PDT · by citizen · 62 replies
    Fox News Business ^ | September 17, 2015 | Victoria Craig
    Fed decision day: The event traders across the globe have anticipated for months has finally arrived. As of 8:00 a.m. ET, Dow Jones Industrial Average futures were 43 points lower, or 0.26% to 16621. S&P 500 futures shed 6 points, or 0.31% to 1982, while Nasdaq 100 futures slid 10 points, or 0.24% to 4370. Today’s Markets Months of speculation about whether September was the month in which the Federal Reserve would begin to lift short-term interest rates is finally coming to a close. The Federal Open Market Committee meets for the final day of its two-day policy-setting meeting, which...
  • Markets Lay Bets On No Rate Hike; Economists Differ

    09/16/2015 5:14:58 AM PDT · by expat_panama · 23 replies
    Investors Busniness Daily ^ | 09/15/2015 | ANDREA RIQUIER
    Yellen May Surprise You Futures see 25% chance of ‘liftoff’ on Thursday;2-yr. yield hits 4-yr. high What if they threw an interest-rate hike and no one cooperated? The Federal Reserve has been edging tentatively toward the final step of monetary policy "normalization" for years. But events have conspired against it. In 2013, the mere mention that the Fed might slow additional bond buys sparked a worldwide market "taper tantrum." Ever since, despite broad consensus that the U.S. economy is on firm footing, one "one-time" event after another has cropped up to test that belief: the worst winter in decades, oil...
  • An OK Jobs Report Has the FOMC Rate Obsessed

    08/10/2015 4:16:25 AM PDT · by expat_panama · 17 replies
    Real Clear Markets ^ | August 10, 2015 | Louis Woodhill
    Federal Reserve Chair Janet Yellen and her merry band on the FOMC* seem determined to raise interest rates at their next meeting, which is scheduled for mid-September. If so, Friday's "Employment Situation" report from the Bureau of Labor Statistics (BLS) probably won't dissuade them. The BLS report was mixed. The number of FTE** jobs increased by 486,000, mainly because of a decline in the percentage of jobs that are part time. However, labor force participation fell to yet another modern low, and year-over-year growth of the weekly wages of "production and non-supervisory workers" came in at only 1.8%. There was...
  • Why the Economy Is Not Ready for an Interest Rate Increase

    08/03/2015 4:05:11 AM PDT · by expat_panama · 16 replies
    New York Times | AUG. 1, 2015 | THE EDITORIAL BOARD
    The Federal Reserve talked up the economy last Wednesday, in a statement that emphasized improvements in employment, housing and consumer spending. Unfortunately, the optimism is misplaced. On Thursday, the Commerce Department reported that from April through June, the economy grew at an annual rate of 2.3 percent — a modest pace, especially given the expectation of a bigger rebound from weather-related poor growth in the first quarter. In 2014, for instance, when bad weather also reduced first-quarter growth, the economy grew at an annual pace well above 4 percent for the next two quarters. In comparison, the economy’s recent performance...
  • Printable graphs explaining compound interest

    07/22/2015 5:53:43 AM PDT · by TurboZamboni · 18 replies
    myself ^ | 7-22-15 | TZ
    I'm looking for printable charts that show how compound interest works to show young relatives the effects of saving and compare starting sooner rather than later and how having time on your side works. It would be helpful if it could be changed to various rates and ages to play with the numbers.
  • Negative interest rates put world on course for biggest mass default in history

    04/29/2015 5:13:17 AM PDT · by MeneMeneTekelUpharsin · 46 replies
    The Telegraph ^ | 28 April 2015 | Jeremy Warner
    Here’s an astonishing statistic; more than 30pc of all government debt in the eurozone – around €2 trillion of securities in total – is trading on a negative interest rate. With the advent of European Central Bank quantitative easing, what began four months ago when 10-year Swiss yields turned negative for the first time has snowballed into a veritable avalanche of negative rates across European government bond markets. In the hunt for apparently “safe assets”, investors have thrown caution to the wind, and collectively determined to pay governments for the privilege of lending to them. On a country by country...
  • Dire costs of easy Fed now and later: Jim Grant

    04/08/2015 4:14:03 PM PDT · by 9thLife · 7 replies
    cnbc ^ | Tuesday, 7 Apr 2015 | 8:38 AM ET | Matthew J. Belvedere | @Matt_Belvedere
    Closely followed market watcher Jim Grant disputes the argument that there's no harm in the Federal Reserve keeping interest rates near zero percent—calling for the cost of borrowing money to be determined by the free market. He said Tuesday the price of the central bank's persistent easy money policies is on display currently in the form of stifling American enterprise and sending millions of people from the workforce "more or less permanently." "The prospective cost is the unmasking of the misallocations of capital that will have come about through the levitation of asset prices," including real estate, Grant said. "If...
  • Why The Fed Ended QE And Why They Can’t Restart It

    03/24/2015 1:54:38 PM PDT · by Signalman · 16 replies
    Dick Morris ^ | 3/24/2015 | Dick Morris
    Many stock market investors have, in the back of their minds, the comforting illusion that the Quantitative Easing with which the Fed showered Wall Street during the past three years could restart if the market falters. (Under Quantitative Easing, the Fed gave banks $85 billion each month to help stimulate lending and spending and to drive up stock prices). Some also see that the impending rise in interest rates can be reversed if the economy begins to drop. Both assumptions are really illusions. The factors that impelled an end to Quantitative Easing and to higher interest rates rule out a...
  • Ponzi: Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt

    11/28/2014 5:30:08 PM PST · by xzins · 45 replies
    CNS ^ | November 28, 2014 | Terence P. Jeffrey
    The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government. During those eight weeks, Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone...
  • The Average American Can't Answer These Three Simple Finance Questions

    05/09/2014 8:48:55 AM PDT · by SeekAndFind · 86 replies
    Business Insider ^ | 05/09/2014 | Cullen Roche
    Here’s a frightening fact via The Atlantic’s Moises Naim.  Roughly half of the world can’t answer these three questions correctly: 1.  Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much do you think you would have in the account if you left the money to grow? A) more than $102; B) exactly $102; C) less than $102; D) do not know; refuse to answer.2.  Imagine that the interest rate on your savings account is 1 percent per year and inflation is 2 percent per year. After one year, would you...
  • CBS News Denies Conflict of Interest over Exec’s Familial Ties to White House

    05/01/2014 5:33:09 PM PDT · by Nachum · 18 replies
    Mediaite ^ | 5/1/14 | Josh Feldman
    Former CBS News reporter Sharyl Attkisson has made the media rounds claiming that network management was not exactly happy she was covering stories critical of the Obama administration. When new Benghazi information was made public this week, CBS News covered the new details (with a disclosure that Ben Rhodes, the Obama administration official at the center of the controversy, is the brother of CBS News President David Rhodes). However, some conservative sites still claimed a serious conflict of interest, with the Heritage Network blog and the Washington Free Beacon picked up on the familial connection.
  • Demand For High-Interest Payday Loans Soars In Minnesota

    02/23/2014 8:22:16 AM PST · by Son House · 24 replies
    MinnPost ^ | 01/28/13 | Jeff Hargarten, Kevin Burbach, Calvin Swanson, Cali Owings and Shayna Chapel
    Call it predatory lending. Or call it financial service for the neediest. Either way, more Minnesotans are turning to high-interest payday loans and other services outside the mainstream banking system, controversial enterprises that operate through a loophole to dodge state restrictions. On a typical morning throughout Minnesota, customers stream into any one of some 100 storefronts where they can borrow hundreds of dollars in minutes with no credit check – at Super Cash on the north side of Bloomington, for example, at Ace Minnesota Corp. on Nicollet Avenue in Richfield and across the metro on Roseville’s Rice Street at PayDay...
  • Interest on our country's debt to nearly quadruple over decade - CBO

    02/12/2014 10:10:08 AM PST · by SeekAndFind · 16 replies
    CNN Money ^ | 02/05/2014 | By Jeanne Sahadi
    <p>For the next few years, deficits are looking pretty good. But the interest owed on the country's cumulative debt is set to nearly quadruple over the next decade.</p> <p>The Congressional Budget Office projects that interest will be $233 billion this year, or 1.3% as a share of the economy.</p>
  • What if interest on the national debt skyrockets? Threat looms over Washington’s budget

    01/06/2014 7:36:03 AM PST · by bestintxas · 17 replies
    wash times ^ | 1/6/14 | jt young
    Despite the federal deficit’s recent decline, it remains large, and the nation’s growing debt threatens to quickly accelerate it to new heights. During the past four years, the deficit has been historically high and federal interest rates historically low. Together, they have overshadowed the rapidly increasing federal debt. Now, with the deficit down from its heights and interest rates up from their lows, a looming menace is becoming clear: The federal government’s increasing debt has created the equivalent of a large, new entitlement-spending program in the form of debt-service costs. No longer a peacetime record, the deficit still remains very...
  • Sea of Green Foam: Global Sovereign Yields Fall On Syria/Weak Data, Oil Zooms

    08/27/2013 12:55:00 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 08/27/2013 | Anthony B. Sanders
    The global sovereign yield table is a sea of green foam. I say green foam because the Central Banks are still pumping air into the water at high speed. wbm082713 Except for the PIGS (Portugal, Italy, Greece and Spain). They are seeing rising sovereign yields for the 10 years. The US is down 7.1 basis points on the previous poor durable goods report and Syria war jitters. Japan is down 2.1 bps while the UK is down 11.3 bps. Oil is shooting through the roof. But corn, an ingredient in ethanol, is falling. oilF Green sea form and oil don’t...
  • Posted August 16, 2013 Increase in Luxury Listings Fueled by Low Interest Rates

    08/18/2013 4:22:37 AM PDT · by William Tell 2 · 1 replies ^ | 8-16-13 | Juliette Fairley
    NEW YORK (MainStreet) — The housing market is on the rise again after...
  • Fed Fail! Interest Rates Higher Today Than When Quantitative Easing Started

    07/27/2013 8:21:16 AM PDT · by whitedog57 · 12 replies
    Confounded Interest ^ | 07/27/2013 | Anthony B. Sanders
    Federal Reserve Chairman Ben Bernanke may be stepping down when his term expires in January. If that happens, President Obama gets to nominate his successor. The leading candidates are Fed Vice Chair Janet Yellen and former Treasury Secretary Larry Summers. Both Yellen and Summers are from elite, liberal universities (University of California at Berkeley and Harvard University, respectively). Both are similar to Bernanke in terms of policies. Yellen is quiet and Summers is … well, Summers – quite opinionated. It is doubtful that other respected candidates like Jeff Lacker at the Richmond Fed or Thomas M. Hoenig from the Kansas...
  • Rising Sovereign Yields and Mortgage Rates – US and Japan

    06/30/2013 6:28:40 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 06/30/2013 | Anthony B. Sanders
    Since May 1st, both US Treasury yields and Japanese sovereign yields have risen, but mostly the US Treasury yields. usjapyc063013 And with the rise in sovereign yields, mortgage rates in both the US and Japan have risen. japausmortgagerates Both US and Japanese house prices were deflating since 2008, but Japan (in red) continues to deflate while the US house prices (in blue) are showing a sudden increase … again. usjaphouse In Japan, mortgages secured by housing has been declining since 1992, but started to stabilize in 2007 when US mortgage volume started to fall. mortgvoljapanuse So, how will rising mortgage...
  • A Tale Of Two CBO Forecast: 2008 Vs. 2013 (Miles And Miles Of Deficits Thanks To Obamacare)

    05/14/2013 7:04:29 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 05/14/2013 | Anthony B. Sanders
    The Congressional Budget Office (CBO) has released its budget forecast from 2013 to 2023. Their forecast? Deficits as far as they eye can see … and then some. Here is the CBO’s budget forecast from 2008. The budget forecast was actually rosy! Here is a comparison of the two forecasts: Why the change from a rosy forecast to a gloomy one? Healthcare and interest costs. Both are expected to rise until 2013 (and beyond). A recent study by Congress revealed that Obamacare (aka, the Affordable Healthcare Act) will increase healthcare insurance premiums by 100% up to 400%. “Affordable” health care?...
  • Is The Fed Going Cold Turkey After Going Wild Turkey? Housing And The Stock Market

    05/12/2013 9:13:10 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 05/12/2013 | Anthony B. Sanders
    According to the Wall Street Journal, The Fed is planning to dial back the incredible monetary stimulus. But it won’t go “cold turkey.” We can always rely on The Dallas Fed’s Richard Fisher for a pithy comment: “I don’t want to go from wild turkey to cold turkey,” Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview Friday. “I think we ought to dial it back.” Mr. Fisher is part of a contingent of Fed hawks who are wary of the central bank’s easy-money policies. After all, Central Banks have lowered interest rates 511 times...
  • Is The Fed Going Cold Turkey After Going Wild Turkey? Housing And The Stock Market

    05/11/2013 8:24:11 PM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 05/11/2013 | Anthony B. Sanders
    According to the Wall Street Journal, The Fed is planning to dial back the incredible monetary stimulus. But it won’t go “cold turkey.” We can always rely on The Dallas Fed’s Richard Fisher for a pithy comment: “I don’t want to go from wild turkey to cold turkey,” Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview Friday. “I think we ought to dial it back.” Mr. Fisher is part of a contingent of Fed hawks who are wary of the central bank’s easy-money policies. After all, Central Banks have lowered interest rates 511 times...
  • Bank Of Japan Opens The Monetary Floodgates To Induce 2% Inflation – Yield Curve Declines

    04/04/2013 6:25:20 PM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 04/04/2013 | Anthony B. Sanders
    <p>The Bank of Japan unleashed the world’s most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.</p>
  • Mortgage Spreads Rise Most Since May 2012 With More Part-time Jobs

    03/08/2013 6:12:11 PM PST · by whitedog57
    Confounded Interest ^ | 03/08/2013 | Anthony B. Sanders
    Today’s job market report showed a better gain in jobs than forecast. Even though full-time jobs declined and part-time jobs increased, the market interpreted this news as positive. But along with the “positive” jobs news, we also saw a rise in the US Treasury 10 year yield. It has generally been increasing since November 2012. Meanwhile, the Fannie Mae 30 year current coupon rose to his highest level since May of 2012. TBA performance deteriorated on the jobs news. The Bankrate 30 year fixed-rate mortgage average rose, but is still below the recent peak of 3.69% on February 20, 2012....
  • Interest Expense on the Debt Outstanding (359 Billion in FY 2012)

    01/30/2013 7:02:55 PM PST · by xzins · 14 replies
    TreasuryDirect.Gov ^ | Current | TreasuryDirect.Gov
    Interest Expense on the Debt Outstanding The Interest Expense on the Debt Outstanding includes the monthly interest for: U.S. Treasury notes and bondsForeign and domestic series certificates of indebtedness, notes and bondsSavings bondsGovernment Account Series (GAS)State and Local Government series (SLGs) and other special purpose securities. Amortized discount or premium on bills, notes and bonds is also included in the monthly interest expense.The fiscal year represents the total interest expense on the Debt Outstanding for a given fiscal year. This includes the months of October through September. View current month details (XLS Format, File size 146KB, uploaded 01/07/2013).Note: To...
  • Inflation, Interest Rates and The Upcoming Fed Meeting on 12/12

    12/08/2012 4:46:04 PM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 12/08/2012 | Anthony B. Sanders
    Over the last 12 months, interest rates around the world have come tumbling down. In terms of 10 year sovereign yields, the US fell 40.8%, Germany fell 80.4% and the UK fell 49.1%. Mortgage rates in the US have fallen as well, but not as much. According to the Mortgage Bankers Association, the 30 year fixed rate mortgage effective rate fell 16.51% over the past year. This decline is considerably less than the 40.8% decline in the 10 year Treasury yield. The Fed realizes that whether or not the US goes off the fiscal cliff or not, its citizens are...
  • The Biggest Financial Scandal In History?

    07/05/2012 2:00:45 PM PDT · by blam · 6 replies
    TEC ^ | 7-5-2012 | Michael Snyder
    The Biggest Financial Scandal In History?Michael SnyderJuly 5, 2012 We always knew that the financial markets were rigged, but this is getting ridiculous. It is now being alleged that 20 major banks have been systematically fixing global interest rates for years. Barclays has already been fined hundreds of millions of dollars for manipulating Libor (the London Inter Bank Offered Rate). But Barclays says that a whole bunch of other banks were doing this too. This is shaping up to be the biggest financial scandal in history, and criminal investigations have been launched on both sides of the Atlantic. What those...
  • Arbitrarily Low College Loan Interest Rates Harm Students, Taxpayers

    05/07/2012 5:22:03 AM PDT · by MichCapCon · 7 replies
    Capitol Confidential ^ | 5/4/2012 | Jarrett Skorup
    A government policy of subsidizing loans and encouraging people to borrow huge amounts that many won’t be able to repay has run-up $1 trillion worth of questionable debt. A growing number of experts fear that borrowers are paying more than the market can support, and some economists are warning of a bubble that could trigger a larger financial crisis. A spokesman for the President’s Consumer Financial Protection Bureau says the industry is likely “too big to fail.” Unfortunately, these are not headlines from the 2008 home mortgage meltdown. They instead describe current reports about the state of student higher education...
  • Obama's Budget: 'Interest Payments Will Exceed Defense Budget' in 2019

    04/06/2012 11:03:37 AM PDT · by tired&retired · 12 replies
    Weekly Standard ^ | April 5. 2012 | DANIEL HALPER
    The latest chart from the Senate Republican Budget Committee, pointing out that under President Obama's budget, the U.S. government will be spending more in 2019 to pay the interest on the national debt than it will be to defend America:
  • Bond Collapse Continues

    03/14/2012 9:18:13 PM PDT · by Razzz42 · 8 replies
    Trader Dan's Market Views ^ | Wednesday, March 14, 2012 | Dan Norcini
    Much to the chagrin of the Federal Reserve, bond traders are taking that FOMC statement from yesterday and taking no prisoners as they literally hammer the long bond into submission. I find it a bit ironic (to be honest I am gleeful about it) that the Fed, which continues its attempts to manipulate hedge fund behavior by herding them into the equity markets, has opened an enormous can of worms and awakened the heretofore comatose bond vigilantes as an undesirable chain reaction to their "peachy" statement about the state of the US economy. Bond traders are already moving the Fed...

    01/29/2012 10:14:07 AM PST · by Razzz42 · 12 replies ^ | January 28, 2012 | Martin Armstrong
    [T]he number one question pouring in is about the banks and their profit margin. Yes, the bottom line remains that the cost of money declines sharply for depositors while the cost of borrowing rises. Where the value of cash for three years is 0.7% to a depositor, for a fully collateralized borrower, the cost is about 4%. This is a profit margin for the banks of 571%. In other words, when the discount rate was 17% in 1981, this would have been the equivalent of a prime rate at 9707%. The profit margin at banks has NEVER been so high....
  • An Epic conflict of interest

    12/27/2011 9:55:31 AM PST · by Nachum · 10 replies
    The Daily Caller ^ | 12/27/11 | Pejman Yousefzadeh
    Meet Judy Faulkner. She is the founder and CEO of Epic Systems Corporation in Wisconsin. She is also a member of the GAO Health Information Technology Policy Committee and an advisory board member of the Journal of Healthcare Information Management. She is also politically active. In 2008, Faulkner gave at least $110,000 to political organizations and candidates, including $57,000 to the Democratic National Committee and $2,300 to then-Senator Barack Obama, according to the Center for Responsive Politics. After Obama’s election, Faulkner continued giving to the Democrats, giving at least $85,000 through the 2010 midterm election. In 2010, Faulkner gave $60,000...
  • Islamic Banking: Is It Really Kosher? (How they obey laws that prohibit the payment of interest)

    12/18/2011 1:30:43 PM PST · by SeekAndFind · 8 replies
    The American ^ | Aaron MacLean
    Muslim scholars say the Qur’an prohibits collecting interest on loans. But many banks, both global and local, have found clever ways to meet religious strictures. It’s a system that may be hypocritical, but also profitable. The coverage can be a little bit breathless: “La finance Islamique en plein boom,” Le Figaro reported in September. Yes, Islamic banking, structured along the lines that religion decrees, is in full boom. But is it really banking? And is it really kosher? Islam prohibits the payment of interest on loans, so observant Muslims require specialized alternative arrangements from their banks. Many of the largest...
  • So How Do These Sorts of Crises End?

    10/28/2011 4:58:39 PM PDT · by blam · 18 replies
    TMO ^ | 10-28-2011 | Paul Tustain
    So How Do These Sorts of Crises End? Interest-Rates / Global Debt Crisis Oct 28, 2011 - 01:38 AM By: Paul Tustain However this crisis is resolved, guess who'll be footing the bill... The World has endured these sorts of crises before. Somehow they come to an end. What happens? Sometimes, someone turns up who can prop up the collapsing debt mountain, and they make it grow higher, for a little bit longer. For a short while they are even called brilliant, but they leave a bigger problem than they started with. Eventually the thing comes crashing down and the...
  • New risk for Occupy Wall Street: less media interest

    10/25/2011 6:48:04 PM PDT · by NormsRevenge · 18 replies
    Yahoo ^ | 10/25/11 | Ben Berkowitz - Reuters
    NEW YORK (Reuters) - "Occupy Wall Street" is occupying less space in TV broadcasts, newspapers and social media as the story settles into a familiar pattern and protesters dig in for what could be a protracted fight. While the movement's reliance on Twitter and Facebook to spread its message is well established, it has also benefited from becoming a media curiosity, at times drawing legions of TV crews and reporters to its encampments. Coverage fed on itself, as more people joined in more cities. But experts say the protests are now making a natural -- yet challenging -- progression off...

    10/02/2011 8:34:31 PM PDT · by mick · 52 replies · 2+ views
    Market Watch ^ | 10/2.2011 | Staff
    Hang Seng Index leads Asia fall, diving more than 4%. Hong Kong stocks tank as financials plunge on reports that Greek budget misses austerity targets. • Japan stocks dive, with exporters tumbling • Australian stocks fall sharply on Europe jitters
  • Is Operation Twist already working?

    09/29/2011 9:35:55 AM PDT · by Free Vulcan · 15 replies
    Marketwatch ^ | 9.29.11 | Staff
    Less than 10 days after the Federal Reserve announced a reprise of the “Operation Twist“ strategy it first used half a century ago, mortgage rates are at all-time lows. Operation Twist is the Fed’s plan to squeeze the long end of the yield curve by buying long-term Treasurys instead of short-term ones — in other words, increasing demand and lowering the rates for long-term borrowing.