Last time I check the interest rates are set by the Bank of Canada in this country. Now the Bank of Canada which set those rates to their lowest level in history (2008) is now worried about the dangerous level of household debt.Read More
Posts Tagged ‘debt’
The ECB and IMF would really like Ireland to stop this nonsense and take the money to bailout the bankers and implement austerity measures in exchange (great deal!). The Irish Times this morning was stating that PM Cowen was still opposed to a bailout. Mind you this is politics.
Meanwhile in Austria, they confirmed they are withholding 190 billions euros – their tranche in the Greek Rescue Fund – because they want to see how Greece can come up with the money through taxes. Greece was not able to demonstrate that it was able to do this. Big surprise here. …Read More
Yesterday the Fed indicated that they would keep their rate stable. No news there as they said since the beginning of the crisis that they would keep their rates low for an “extended period”. But what is interesting (but not surprising) is their indication that, fearing deflation like the plague, they are prepared to provide additional support to the economy via large-scale purchases of Treasuries (QE). They had already done it on a smaller scale last month using their proceeds from mortgage backed securities to buy Treasuries.
I know it’s not customary to find people like central bankers very funny but …Read More
Irish CDS spreads hit their highest this week since the height of the crisis amidst fear from investors that Ireland maybe into deep rescuing its banking sector.Read More
When you hear people say that there will be no housing bubble in Canada because we are different, please remember that the vast majority of economists, government officials, and financial pundits could not see the disaster coming as it was staring them in the face in the US. It may come as a shock to you but people have agendas when there are cheerleading home prices. Politicians want to keep voters confidence, businesses want consumers to keep shopping, networks want to keep ratings high with optimism, banks and real estate brokers want to continue making money on fees and interest. …Read More
Homes sales in the US plunged, sorry crashed, by 27.2%. With real unemployment rate at 17%, 40 million on Food Stamps in the US and 15 million Americans looking for a job – why would that surprise anyone is, well, surprising. Come back to me in 2013 and we can talk about a bottom in the US housing market. You can put the interest rates as low as you want, add all the tax credits you can dream of, when you don’t have a job or are afraid of losing the one you have, the last thing on your mind …Read More
V-Shape recovery, where are thou? If Obama listens to Paul Krugman he will have a debt crisis on his hands sooner than he thinks. One thing that escapes most people is that the ones you think are in charge are not really (not even the G20? Shocking!).Read More
What? No recovery? Well it would be hard to end a recession if one has never gone away in the first place. Yes a correction is a very nasty thing but it actually comes as surely as death and taxes after a major credit expansion. Investors are slowly realizing that there was no recovery – just more debt – and here are the signs: Dow is down, consumer confidence in the US is down, foreclosures and houses are still on a downhill slope, China had less growth than expected in Q1 of 2010 (is that a surprise?).
Now over in …Read More