Tag Archives: NIRP

Have Governments And Banks Learned Nothing From The 2008 Financial Crisis?

Government Bonds And Consumer Debt Levels Soar While Bailouts Remain The Norm! This is an excellent read from an article at City Journal! These are some of the general takeaways… Some Key Points: ‘Bailouts remain the norm worldwide’ ‘In 2008, the world’s major central banks held little more than $6 trillion in assets, according to […]

Is The Mortgage Market Facing The Unintended Consequence Of A Fed Inspired Liquidity Crisis?

unintended consequences of the Feds reluctance to raise interest rates

In other words, despite the fact that mortgage rates are at cycle lows, could the reticence on the part of the Fed to raise rates actually bring the hammer down on mortgage originations? Kroll Bond Rating Agency Senior Managing Director Christopher Whalen thinks so! “Policymakers are not watching spreads. There is a liquidity problem — this is […]

The Central Bank Casino…BOJ, Fed, Real Estate And Mortgage Rates!

Zirp and Nirp

(Note: This article also appears at econintersect.com) This week both the Bank of Japan and the Federal Reserve will be meeting to chart the future course of interest rates! In the U.S. where prior to the recent small interest rate hike ZIRP or zero interest rate policy had been in place, speculation over whether the Fed will raise or stand […]

The Credit Suisse Fear Barometer Hits A Record High!

VIX,fear index

Summary: With the VIX near its lows why are there two so very different sides to the same coin? For those unfamiliar with the Credit Suisse Fear Barometer it is another metric for gauging investor angst and expectation! Knowledge Is Power – Francis Bacon To the everyday stock market watcher the most commonly used metric for […]

Insurer Survivability: (More) Unintended Consequences Of ZIRP And NIRP!

ZIRP AND NIRP! For potential property buyers and current owners of property who are thinking of refinancing a mortgage, ZIRP has been, and NIRP may someday be, fantasticmonetary policies! ZIRP? NIRP? For those unfamiliar these acronyms are not the sounds an infant might make but instead are deadly serious policies that are being used by central bankers around the world in […]