* The grey zones indicate US recessions. According to the current yield spread, the yield curve is now inverted. This may indicate economic recession. An inverted yield curve occurs when yields on short-term bonds rise above the yields on longer-term bonds of the same credit quality, which ...
in other countries. The US gold price is converted to the currency in that country based on the current exchange rate. In other words, no matter where in the world you purchase gold, the actual value of that gold in US dollars is the same. The below chart shows the annual gold price ...
Cost: From an interest rate perspective, most of these will have a treasury spread of 500-1000bp – sorry for the finance gobbledygook – the rate will be 5-10% higher than the equivalent length US Treasury rate. That means a rate of 10-15% will be normal in this market!
Finally, the UK withdrew from the European Exchange Rate Mechanism, devaluing the pound sterling, earning Soros an estimated US$1.1 billion. He was dubbed "the man who broke the Bank of England."[31] In 1997, the UK Treasury estimated the cost of Black Wednesday at £3.4 billion. On Mo...
Despite continual cash outflows from the US market, the S&P has more than doubled from the early 2009 lows. –a rotation out of bonds, in my view, will only start when interest rates begin to rise–and bond investors begin to experience losses. My guess is that this is a least a ...
2) US home prices are reaching a long-term ceiling barring an entirely new stream of wealth creation, given that mortgage rates are so low that property taxes are a larger annual expenditure than mortgage interest. Further Federal Reserve purchases of bonds and MBSs are now past the point of...
Keep Interest Rates Low:The notional amount of the debt is one thing, but the amount the US Government needs to pay to service the debt (i.e., pay the interest on the debt) is another. In order to keep debt service under control, the Fed should try to keep interest rates as low ...