bond market

Podcast

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Danielle DiMartino Booth: Don't Count On The Powell Fed To Rescue The Markets

The new Fed Chair may break from his predecessors
Sunday, February 11, 2018, 4:29 PM

The recent gut-wrenching drop in asset prices began on the first day of the job for new Federal Reserve Chairman Jerome Powell.

How is Mr. Powell likely to react to a suddenly sick-looking market? Will he step in forcefully to reassure investors that there's a "Powell put" in place as a backstop?

To address these questions, former analyst at the Federal Reserve Bank of Dallas, Danielle DiMartino Booth, returns to the podcast this week. In her opinion, having studied Powell's previous statements, she thinks those expecting him to continue the market support his predecessors provided will likely be quite disappointed.

Powell appears to be no large fan of continued quantitative easing, and has long been on the record as concerned about the eventual pain its unwind will cause. He very well may resist riding to the market's rescue at this time, allowing natural market forces to finally have their way: » Read more

Podcast

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Richard Sylla: This Is An Inherently Dangerous Moment In History

Low interest rates are causing distortions & mis-allocations
Monday, August 7, 2017, 2:42 PM

"The rates we’ve had in recent years, including right now, are the lowest in history. The book that I co-authored on the history of interest rates traces back to the code of Hammurabi, Babylonian civilization, Greek and Roman civilization, the Middle Ages, the Renaissance, and early modern history right up to the present. And I can assure our listeners that the rates that they’re experiencing right now are the lowest in human history."

So says Richard Sylla, Professor Emeritus of Economics and the Former Henry Kaufman Professor of the History of Financial Institutions and Markets at New York University's Stern School of Business. He is also co-author of the book A History Of Interest Rates

We invited Professor Sylla onto the podcast after hearing his work favorably referenced by the panel convened at the recent hearing held by the US Congress titled: “The Federal Reserve’s Impact on Main Street, Retirees and Savings.”

Based on his deep study across the scope of millennia of human history, Sylla warns we are at a dangerous moment in time. » Read more

Podcast

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Danielle DiMartino Booth: An Insider Exposes The Evils Of The Fed

Killing savers, pensions & ultimately the bond market
Sunday, February 12, 2017, 1:01 PM

Danielle DiMartino Booth, former analyst at the Federal Reserve Bank of Dallas, has just released the book Fed Up: An Insider's Take On Why The Federal Reserve Is Bad For America.

In it, Danielle describes how the Federal Reserve is controlled by 1,000 PhD economists and run by an unelected West Coast radical with no direct business experience. The Fed continues to enable Congress to grow our nation’s ballooning debt and avoid making hard choices, despite the high psychological and monetary costs. And our addiction to the "heroin" of low interest rates is pushing our economy towards yet another collapse.

This reckless monetary policy pursued by the Fed has resulted in the rich elite becoming markedly richer, while savers and retirees are being absolutely gutted. All while risking a coming conflagration in the bond markets that will destroy a painful percentage of the world's financial wealth: » Read more

Insider

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Off The Cuff: Multiplying Market Oddities

Rising rates are creating cross-currents everywhere
Thursday, November 17, 2016, 8:15 PM

In this week's Off The Cuff podcast, Chris and Axel Merk discuss:

  • Impact Of A Trump Presidency On The Markets
    • What will the most likely trends be?
  • Plummeting Bond Prices
    • Good or bad?
  • The Unbearable Lightness Of Stocks
    • Rising prices in the face of rising interest rates
  • Gold's Prospects
    • Inflation? Higher rates? What will it mean for gold?

Axel and Chris address the increasing sell-off in the bond market, which can also be described as the sudden rising of interest rates. In an over-indebted financial system as ours, rising rates will make it more expensive to service the outstanding debt, placing increasing headwinds on economic growth. Right now, the stock market is ignoring that -- instead, it's pricing for perfection. Axel warns that this "oddity" will need to correct soon, one way or the other.

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today. » Read more

Blog

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Hell To Pay

The final condition for a market crash is falling into place
Friday, September 23, 2016, 5:23 PM

Those familiar with my writing know I put the word “markets” in quotes because we no longer have a financial system where legitimate price discovery is a regular -- or even recognizable -- feature.

It's destined to fail. What more can be said about such a flawed system?

Well, a lot as it turns out. 

And failure to pay attention at this stage of economic and ecological history will prove to be exceptionally painful. » Read more

Insider

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Off the Cuff: Market Mayhem

After the recent carnage, what's next?
Thursday, October 16, 2014, 9:12 PM

In this week's Off the Cuff podcast, Chris and Alasdair MacLeod discuss:

  • The Market Meltdown
    • What the heck just happened?
  • The Next Round of Bailouts
    • If you hate the problem, wait till you see the solutions
  • Gold
    • Ready for a return to the limelight?
  • Ebola
    • Is the media selling us too much fear?
Blog

Gravity Returns - The Market Drops Nearly 5% in 3 Days

Years-long trends are finally breaking
Monday, October 13, 2014, 7:14 PM

A month ago, in an analysis titled Defying Gravity, I wrote about the unsustainable state of the stock market's high prices.

In it, I noted how the stock market had risen for an aberrantly-long time time without a correction, and that it hadn't even tested its 200-daily moving average price once since the beginning of 2012: » Read more

Blog

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Defying Gravity

The case for hedging against a market downturn
Wednesday, September 10, 2014, 12:05 AM

Today's markets exist in an Oz-like, fantasy world. For 5 years now, stock and bond prices have risen like Dorothy's balloon, without so much as a puff of downdraft to spoil the fun.

Everybody likes higher prices, so let's have them always go up! Forever!

Whether that can happen is a topic of current hot debate, though few think corrections have been permanently banished from the financial markets. » Read more

Blog

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I Blame The Central Banks

For the coming bond bubble disaster
Wednesday, August 27, 2014, 8:17 PM

The current bubble in financial assets -- in both equities and bonds of all grades and quality -- raging in every major market across the globe is no accident.

It's a deliberate creation. An intentional result of policy.

Therefore, when it bursts, we shouldn't regard the resulting damage as some freak act of nature or other such outcome outside of our control. To reiterate, the carnage will be the very predictable result of our terribly shortsighted decision-making and defective logic. » Read more

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The Trends to Watch For in 2014

Government overreach, economic stagnation & civil discontent
Tuesday, December 31, 2013, 2:11 AM

At the beginning of this year (2013), I identified eight key dynamics that will play out over the next two to three years (2013-2015). Let’s see how the trends developed... » Read more