In a debt drugged, liquidity obsessed world, a change in interest rates can go from affecting profitability to affecting solvency very quickly. And it’s not just the banks that are high on cheap credit.
February 27th, 2010 | Nickolai Hubble | 0 comments | ContinuedAll Posts Tagged With: "world economy"
The Sovereign Debt Disaster
The problem is not just the current debt levels of these nations, because the deficits in all the countries are rising. Tax revenues are collapsing at the same time…
February 24th, 2010 | Egon von Greyerz | 2 comments | Continued
Modern World Economy is Built on a Foundation of Unsound Money
Now just because Ben Bernanke and the global cabal of counterfeiters don’t want something to happen doesn’t mean it won’t happen anyway. The deflating of the reflated asset bubble is going to happen sooner or later. The world’s massive inverse pyramid of debt is supported by a very small asset base.
February 5th, 2010 | Dan Denning | 5 comments | Continued
Bankers Admit Faults in Congress
“The bankers – whose companies collectively received more than $100 billion in taxpayer assistance to weather the crisis – offered no regrets for executive pay that is now likely to increase…
January 18th, 2010 | Bill Bonner | 2 comments | Continued
US Economists Think China Should Raise the Value of Yuan
China is today’s big story. Throughout the world’s media there is much buzz and blather about the “romance”…the “historic relationship”…between the two titans.
November 19th, 2009 | Bill Bonner | 0 comments | Continued
Reader Mail Plus the Race for Arable Farm Land
Maybe we’re wrong. Maybe we’re right. But we’re certainly not in doubt: there is a race for scarce tangible resources (especially arable land) and we’re willing to bet a few Aussie companies can profit from that in the long term.
October 13th, 2009 | Dan Denning | 0 comments | Continued
A Flawed Theory on How to Manage an Economy During a Recession
Your editor spent last night in a discussion with a querulous and drunk Aussie over the stimulus. “It looks like it worked to me,” he said. “Only world economy still growing. GDP up. We’ve got China. Looks like Ruddy and Swanny know what they’re doing. You’re just a hack. You’ve never run a country. And you’re a Yank!”
October 13th, 2009 | Dan Denning | 100 comments | Continued
Underlying Demand During a Housing Shortage
That is clever to suggest that when rates rise people will have to find another way to say that houses are affordable. But we reckon when rates rise, as they eventually must, a lot of new home buyers will find out that access to cheap credit does not make a house affordable. It just makes the amount of debt you owe to the bank a lot larger.
September 30th, 2009 | Dan Denning | 41 comments | Continued
What Evil Sends Investors Running to the Protection of Gold?
The press attributed this week’s rise in gold to benign causes. The end of the world seems to have been postponed – indefinitely. Bloomberg reported that a clear majority of those polled thought the world economy was recovering.
September 14th, 2009 | Bill Bonner | 1 comment | Continued
4 Ways to Protect Against a Falling Dollar
The US dollar is in bad shape. Over the past several years, the federal budget deficit has shot up like money is going out of style – and maybe it is.
September 9th, 2009 | Jim Nelson | 0 comments | Continued