by
Adam Taggart
NIRP
by
charleshughsmith
In the lunar calendar that started February 8, this is the Year of the Red Monkey. I found this description of the Red Monkey quite apt:
"According to Chinese Five Elements Horoscopes, Monkey contains Metal and Water. Metal is connected to gold. Water is connected to wisdom and danger. Therefore, we will deal with more financial events in the year of the Monkey. Monkey is a smart, naughty, wily and vigilant animal. If you want to have good return for your money investment, then you need to outsmart the Monkey. Metal is also connected to the Wind. That implies the status of events will be changing very quickly. Think twice before you leap when making changes for your finance, career, business relationship and people relationship."
(Source)
In other words, the financial world will be volatile. And few will have the agility and wile to outsmart the market-monkey.
The Year Of The Red Monkey: Volatility Reigns Supreme
by charleshughsmithIn the lunar calendar that started February 8, this is the Year of the Red Monkey. I found this description of the Red Monkey quite apt:
"According to Chinese Five Elements Horoscopes, Monkey contains Metal and Water. Metal is connected to gold. Water is connected to wisdom and danger. Therefore, we will deal with more financial events in the year of the Monkey. Monkey is a smart, naughty, wily and vigilant animal. If you want to have good return for your money investment, then you need to outsmart the Monkey. Metal is also connected to the Wind. That implies the status of events will be changing very quickly. Think twice before you leap when making changes for your finance, career, business relationship and people relationship."
(Source)
In other words, the financial world will be volatile. And few will have the agility and wile to outsmart the market-monkey.
by
Brian Pretti
Executive Summary
- Why the Fed may no be able to raise rates from here
- Will the Fed go to negative interest rates instead?
- Why the next recession will limit the Fed's options greatly
- Why it may well be too late for the Fed at this point to act
If you have not yet read Part 1: Has The Fed Already Lost? available free to all readers, please click here to read it first.
What If The Fed Isn't Actually Able To Raise Rates From Here?
Let’s start with a look at the history of the Federal Funds rate (the shortest maturity interest rate the Fed directly controls). Alongside the historical rhythm of the Funds rate are official US recession periods in the shaded blue bars.
Chart Source: St. Louis Federal Reserve
Of course there is one striking and completely consistent historical commonality in the behavior of the Funds rate over time. The Fed has lowered the Federal Funds rate in every recession since 1954 at least. There are no exceptions. You can see the punchline coming, can’t you? Just how does one lower interest rates from zero to stimulate a potential slowdown in the economy?
Of course in the banking system…
The Future Of Interest Rates
PREVIEW by Brian PrettiExecutive Summary
- Why the Fed may no be able to raise rates from here
- Will the Fed go to negative interest rates instead?
- Why the next recession will limit the Fed's options greatly
- Why it may well be too late for the Fed at this point to act
If you have not yet read Part 1: Has The Fed Already Lost? available free to all readers, please click here to read it first.
What If The Fed Isn't Actually Able To Raise Rates From Here?
Let’s start with a look at the history of the Federal Funds rate (the shortest maturity interest rate the Fed directly controls). Alongside the historical rhythm of the Funds rate are official US recession periods in the shaded blue bars.
Chart Source: St. Louis Federal Reserve
Of course there is one striking and completely consistent historical commonality in the behavior of the Funds rate over time. The Fed has lowered the Federal Funds rate in every recession since 1954 at least. There are no exceptions. You can see the punchline coming, can’t you? Just how does one lower interest rates from zero to stimulate a potential slowdown in the economy?
Of course in the banking system…
by
Adam Taggart
by
Adam Taggart
On Thursday, the European Central Bank (ECB) took the historically unprecedented step of lowering certain of its interest rates below 0%. In a report to our premium subscribers immediately following the announcement, Chris likened the move to the policy equivalent of dropping a neutron bomb.
In the days following, despite the ECB attempting to clarify its stance further, many questions still linger; most notably: What exactly will the implications of this negative interest rate (NIRP) policy be?
Alasdair Macleod: All You Need To Know About Negative Interest Rates
by Adam TaggartOn Thursday, the European Central Bank (ECB) took the historically unprecedented step of lowering certain of its interest rates below 0%. In a report to our premium subscribers immediately following the announcement, Chris likened the move to the policy equivalent of dropping a neutron bomb.
In the days following, despite the ECB attempting to clarify its stance further, many questions still linger; most notably: What exactly will the implications of this negative interest rate (NIRP) policy be?
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