HomeBack to Home
Search
advanced
AustraliaFranceGermanySouth AfricaUSAThe Daily Reckoning is global
Our newsletter pulls you inside a world of insightful, humorous and contrarian investment advice straight from our global network of experts.
What is this?
Privacy Policy.

Page: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | Next page >>
You are on page 1 of 12
 
What the Fed Should Do About Interest Rates - by Bill Bonner

The Fed should raise rates and bring about a much needed correction.


Fed Inflates Away a Debt Bubble - by Rob Mackrill

Lower interest rates will not be enough to get us out of this mess... At least, according to Dominique Strauss-Kahn, head honcho at the International Monetary Fund. In a new economic forecast due this week reports the FT the message is that this is a serious slowdown and it needs a serious response. That means the IMF green light for tax rebates too. This is an about turn from their previous position that such fiscal measures in the US and Japan helped cause trade imbalances in the first place...


US Slashes Interest Rates - by Rob Mackrill

If it were done when 'tis done, then 'twere well It were done quickly. - Macbeth Of course, old Macbeth had killing a king in mind, encouraged by his harridan of a wife. In contrast, Ben Bernanke is on a mission of resuscitation with Wall St and The White House on his back. With a deafening toot on the cheap money horn he hopes to blow some life back into credit markets...consumer spending...house prices and stocks worldwide...


The French Public's Reaction to Sarkozy - by Mark Sampson

Already eight months since he assumed the presidency, it was Monsieur Sarkozys turn a few days later. The papers were full of his glitzy one-man show at the Elyse Palace before an assembled multitude of journalists. In Le Monde, he was likened to General de Gaulle without the kepi. Bordeauxs daily Sud Ouest dubbed him Le Prsident bulldozer: a man seemingly indifferent to criticism, determined to push on with contentious reforms. What do the locals here think of their newish president?


Inflation Increases UK Manufacturing Costs - by Rob Mackrill

It looks like the Bank made the right call on interest rates last week Inflation is bubbling through from the factory gate. The Producer Price Index of factory goods is, in the words of one analyst pretty nasty this time around. They hit a 16 year high when prices rose 5% in December, up from 4.5% the month before. The rises were led by oil and fuel related costs, Bloomberg reports. Over the year the cost of filling up a Jumbo jet rose 11.6% and other gasoline product costs are up 20.5%...


Can the US Avoid Economic Stagnation? - by Bill Bonner

In America, 2008 is beginning as a year of $100 oil...$850 gold...falling stock prices...5% unemployment...and a dollar worth barely one and a half euros. The little countries of Malta and Cyprus chose to go with the euro. Investors all over the world, drug dealers, and central bankers seem to be making the same choice. And did we mention? Stocks fell 256 points on the Dow on Friday. The index is now below 13,000. What do we make of this? First, wed say that it appears that the economy is headed towards the dreaded synthesis of inflation and deflation known as stagflation. Commodity prices are rising. Gold is rising. Oil has already risen. Up...up...up....and yet, the economy can barely get out of bed in the morning. Consumers are running out of money to spend. And financial assets the kind of assets people like to see go up in price are going down instead...


What to Expect from UK Interest Rates in 2008 - by Brian Durrant

This dilemma is similar to that faced by the Bank of England in its current dealings with banks. In the early stages of the so called "credit crunch", the Bank of England took a detached view warning of the dangers of bailing out institutions that had taken reckless lending decisions for profit. The Bank argued that it was not its job to provide a safety net for imprudent behaviour...


US Interest Rate Cut Not Enough? - by Rob Mackrill

An interest rate cut boosts asset prices, no? Well not yesterday. The US stock market blew a huge collective raspberry at the Feds decision to shave 25 basis points off both the Fed Funds rate the overnight bank lending rate - and the discount rate - the rate at which commercial banks borrow from the Fed... Investors saw this as a given and clearly more like half a per cent was the aspiration. The markets response seems to reflect cracks in the general assumption that the Fed is there to bail it out. Theyre putting a Band-Aid on an open wound said one credit strategist in the Wall Street Journal...


Rising Interest Rates Reveal Economic Mistakes - by Bill Bonner

To err is human, we had told them. Mistakes are always being made. In a properly functioning economy, these errors are always being madeand corrected. People go broke. Investments go bad. Projects are cancelled discardedand rejected. But in the last quarter century, interest rates were generally falling. This created a very forgiving economy. Mistakes were still made. But the cost of them went down. You could pay more for a house than you should have paidbut no problem; you could refinance at lower interest!


Interest Rates Cuts: Politics and Europe - by Rob Mackrill

We were wrong. The cost of money just came down... The Bank of England decided on a quarter point rate cut, bringing it down to 5.5%. We noted earlier in the week, the shadow MPC has a reputation for getting it right and they voted 5-2 in favour of a cut. Maybe we should have listened...but the consensus in the court of market opinion shifts so fast...



FSP Logo