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Pension Party! "Zero" Interest Rate Policies Lead To Massive Debt Gorging (CalPERS Massive Pension Underfunding)

The Federal Reserve’s zero interest rate policies (ZIRP) have an unwelcomed effect: both the Federal Government and Private Pensions gorged themselves on low-cost debt.

The Federal Reserve lowered their Fed Funds target rate starting in 2007, then started their asset purchases in late 2008, culminating in a dramatic decline in interest rates. 200 more words

Banking

Is The Fed REALLY Tightening? The Monetary Shell Game (Hint: M1 Money Growing at 8-10% YoY)

The Federal Reservc Open Market Committee (FOMC) has “tightened” the Fed Funds Target rate twice since December 2015. One in December 2015 and once in December 2016. 322 more words

Banking

Credibility of Central Banks - A comprehensive analysis of ECB and FED effectiveness

On the 1st of January 1999, the ECB assumed responsibility for monetary policy in the euro area, with the primary objective of maintaining price stability, keeping the euro area’s target inflation rate (calculated using the Harmonized Index of Consumer Price, HICP) below, but close to 2% over the medium term. 2,388 more words

GDP

Banca Monte dei Paschi di Siena Trading SUSPENDED

Trading in Italian bank Banca Monte dei Paschi di Siena has been suspened.

Italian Finance Minister Pier Carlo Padoan criticized the European Central Bank for not being clear enough in its request for Banca Monte dei Paschi di Siena SpA to boost its capital by almost twice the amount the lender failed to raise on the market. 303 more words

Banking

Stagnation: M2 Money Velocity Continues Falling To All-time Lows!

M2 Money Velocity is the frequency at which one unit of currency is used to purchase domestically- produced goods and services within a given time period. 263 more words

Banking

Fed Raises Target Rate UB To 75 Basis Points, As Expected (But 10Y Treasury Yield Rises Above 2.50%)

The Federal Reserve Open Market Committee (FOMC) raised the Fed Funds Target Rate (Upper Bound) to 75 basis points (or 0.75%). A 25 basis point increase. 91 more words

Banking