SubscribeAll Posts Tagged With: "interest rates"
Read This Before You Refinance Your House
Realtors always warn you “You’d better act now before rates go up.”
You might think they’re right… After all, mortgage rates are the lowest they’ve been since the Fed started keeping records in 1971. But interest rates could go much lower.
America’s problems came to a head in 2007. Since then, the Fed has cut interest rates from over 5% to near zero. As I’ve written before, it looks a lot like Japan…
In the 1980s, Japan had an overlending bubble similar to ours today… Its bubble peaked in 1990. Japan’s version of the Fed cut rates from above 5% to below 1%…
17Mar2009 | Stansberry and Associates | 0 comments | ContinuedPrime cuts of freshly ground US dollars
I want a hippopotamus for Christmas.
Why? Because I’m currently stuck watching our economy. Our disgusting, filthy, disease-ridden, unteachable-and-unwilling-to-learn economy. So, if I’m going to stare at a dirty, fat, dangerous consumption machine, I would at least prefer to have people lined up and paying to see it.
Chopping away at a valuable economic weapon
The Fed cut rates again. The market goes up 359 points. Millions cheer. Only hundreds know what this will actually mean for the economy. I’m not even sure that I’m one of them.
Unfortunately, as far as the rate cut’s apparent influence on the advancement in…
19Dec2008 | Oxbury Research | 0 comments | ContinuedBailout World update
Canada cuts rates by 3/4 percent
The Bank of Canada has dramatically cut its key interest rate by a hefty three-quarters of a percentage point, blaming a “broader and deeper” global slowdown for driving Canada into recession.
The central bank’s overnight lending rate now stands at 1.50 per cent, a generational low and the likes of which have not been seen since the 1950s.
In response, however, Canada’s major banks cut their prime lending rates by only half a percentage point, to 3.5 per cent, rather than following with a full three-quarters of a point reduction.
Canada’s central bank joins a host of other central…
10Dec2008 | The Real Deal | 0 comments | ContinuedBank of England’s Deflation Defense: More Cut Rates
Bank of England governor Mervyn King said today (Wednesday) that dangerous deflation is opening a door for further interest cut rates.
“In the space of a few months, we have gone from the highest rate of manufacturing input price inflation in nearly 30 years to the lowest monthly rate on record. And measures of short-run inflation expectations have fallen back sharply,” King read from a statement before a press conference.
When asked about cutting rates, King said the Bank of England is “prepared to cut bank rates to whatever level is necessary” to keep inflation at its 2% target, Bloomberg…
13Nov2008 | Money Morning | Comments Off | ContinuedAsian Governments Signal More Interest Rate Cuts Coming Soon
With inflation slowing in Asia, governments are signaling they are open to cutting interest rates to buffer their economies from the global credit dearth.
A handful of Asian countries – Australia, China, Hong Kong, India, Japan, South Korea, Taiwan and Vietnam – all cut rates since last week. And among those, South Korea, Indonesia and Thailand reported slower inflation this week, Bloomberg reported.
Story continues below…
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The combination of both lower inflation and lower rates is starting to be priced into the…
6Nov2008 | Money Morning | 1 comment | ContinuedFed’s Out of Control!
Oct. 29 (Bloomberg) — The Federal Reserve cut its benchmark interest rate by half a percentage point to 1 percent, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era.
We U.S. government and Federal Reserve continue to give us signs as to where they stand, where we’re going, and how were going to get there. Cutting the Fed Funds Rate to 1%, is just one more step towards zero, or next to zero interest rates.
Big Cut, Big Deal, of Big Woop?
This was not a big surprise, and the only question coming into…
30Oct2008 | Oxbury Research | Comments Off | ContinuedRate cuts trigger inflation fears
Marketwatch
Moming Zohu
The Federal Reserve, European Central Bank and four other central banks lowered interest rates in a coordinated effort to combat world’s deepening financial turmoil.
"Coordinated central bank aggressive interest rate cuts should lead to gold surging in value in the coming months" as "currency devaluations look increasingly likely," said Mark O’Byrne, executive director at Gold and Silver Investments.
Gold for December delivery gained $24.50, or 2.8%, to close at $906.50 an ounce on the Comex division of the New York Mercantile Exchange. It was the first time the contract topped the $900 level since Sept. 29.
The metal has…
9Oct2008 | The Real Deal | Comments Off | ContinuedThat didn’t take long
The Reserve Bank of Australia cut rates by the largest amount since 1992
The Reserve Bank cut interest rates by 100 basis points today, in a bid to shield the Australian economy from the global wreckage.The bigger-than-expected reduction in official rates to 6.00 per cent was the largest cut in rates by the Reserve Bank since May 1992. The stock market, which had been battered earlier by a rout on northern hemisphere bourses overnight, rallied into positive territory after the shock move. Reserve Bank governor Glenn Stevens said conditions in international financial markets took a “significant turn for the worse” last…
8Oct2008 | The Real Deal | Comments Off | ContinuedEscalating Inflation at Home and Abroad Puts Pressure on Central Bankers
Inflation is spreading like wildfire around the globe, and while not every country is hurting as bad as Zimbabwe with its mind-boggling 2.2 million percent inflation, the United States and Europe are definitely still getting scorched by rising prices.
U.S. consumer prices, as measured by the Consumer Price Index (CPI), increased 1.1% in June, the Department of Labor reported yesterday (Wednesday). That brings the inflation rate for the past 12 months to 5%, well above the U.S. Federal Reserve’s preferred target of 2.0%.
The increase was higher than expected as a 6.6% jump in energy costs and a 0.8% rise in food…
17Jul2008 | Money Morning | Comments Off | ContinuedFed Holds Rates Steady in Face of Upside Inflation Risk
Citing the risk of high inflation, the U.S. Federal Reserve voted to hold the Federal Funds rate steady at 2.0% yesterday (Wednesday).
“Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased,” the accompanying Federal Open Market Committee (FOMC) statement read.
The statement did not allude to any future rate hikes at the next FOMC meetings scheduled for August or September. It was a very balanced statement overall, acknowledging the dual threats of stagnation and inflation currently facing the U.S. economy.
“It is more or less a neutral…
26Jun2008 | Money Morning | Comments Off | Continued
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