Jump to content

Cash Rates


smee
 Share

Recommended Posts

https://www.marketwatch.com/story/stocks-ar...w_theo_homepage

 

Weâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢re at 3.6% unemployment with a 105% debt-to-GDP ratio, and the Fed is signaling three rate cuts. The track record is clear: Itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s not good news for the economy and ultimately not good news for stocks either.

 

 

 

Cutting rates again is making wealth inequality even greater, is again punishing savers, is again pushing wealth toward asset-class holders and again encouraging more debt accumulation. In short: Make the bubble even bigger.

 

Letâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s do it all again, except itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s different this time. Itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s worse. Much, much worse.

 

But no central banker will ever admit it.

 

 

At least for now. Central banks have once again set in motion an environment where all asset classes are inflating. Stocks, bonds, gold, crypto âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€šÃ‚ you name it. Everything is appreciating. Growth may be slow, but assets are flying higher. Asset inflation without growth. We are the Federal Reserve. Always wrong about growth and inflation, but always easy on the money front.

 

============================

 

:lol: i do agree with this analysis and logic, but not so sure about selling everything now. seems mama bear come out from woods again!! :lol:

Link to comment
Share on other sites

  • Replies 24
  • Created
  • Last Reply

Top Posters In This Topic

https://www.cnbc.com/2019/06/25/feds-powell...-interests.html

 

he emphasized that politics wonâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢t be a consideration as the Fed is âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“grapplingâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ with the idea of a rate cut.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The Fed is insulated from short-term political pressures âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€šÃ‚ what is often referred to as our âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‹Ã…“independence,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Powell said in prepared remarks. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Congress chose to insulate the Fed this way because it had seen the damage that often arises when policy bends to short-term political interests. Central banks in major democracies around the world have similar independence.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

 

================

 

:lol:

seems Fed's rate cut isn't that certain now for the markets eh??

Link to comment
Share on other sites

https://www.bloomberg.com/news/articles/201...w-yield-reality

 

Yields on the nationâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s 10-year government bonds hit an all-time low 1.26% last week

 

For a country that avoided the worst of the turmoil that followed the global financial crisis and the unprecedented quantitative easing by central banks from the U.S., Japan and Europe, Australia is now having to contend with a possible future inside that club. The speed of the marketâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s change has raised eyebrows.

 

 

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“On the screen a minute ago, Aussie 10-year bond yields at 1.33? I mean, is that a typo?âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Richard Yetsenga, chief economist at Australia & New Zealand Banking Group Ltd. in Sydney, quipped in a recent Bloomberg TV interview. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Even six months ago they were like 100 points higher.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

 

=================

 

typo????? :lol: it is a fashion that RBA followed other major central bank really late stage ...i'm afraid it might face out vary soon!!

Link to comment
Share on other sites

  • 1 year later...

Australia has sold a bill at a negative yield for the first time in its history, accepting a bid for its 26 March 2021 Treasury note at a yield of -0.01 per cent. The weighted average issue yield was 0.0099 per cent, with the highest yield accepted being 0.015 per cent.

 

The Australian Office of Financial Management had tendered the note to raise $1.5 billion. The AOFM received a total of 58 bids worth $8.2 billion and 19 of those bids were successful with 10 bids allocated in full.

 

 

 

.... and, in a few months time, will this be the norm, or a one off?

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share


×
×
  • Create New...