central banks Tag

Posted On October 12, 2017By BlackbeardIn News

Here’s Why Malaysians Can’t Afford a House

Malaysia’s central bank has a response to those saying it needs to do more to spur home loans: houses simply aren’t affordable. Bank Negara Malaysia has created a website packed with data aimed at debunking the “myth” that access to financing was deterring home ownership, showing that loan approvals for key cities are near 70 percent or higher. The central bank has resisted calls to loosen mortgage lending, instead saying the property industry should boost efforts to cut costs and accelerate supply. Rising home prices have added to the grievancesRead More
When tighter regulations were imposed on the banks after the Financial Crisis, the largest among them, the very ones that threatened to bring down the financial system, began squealing. Those voices are now being heard by Congress, which is considering deregulating the banks again. In particular, they claim that current capital requirements force banks to curtail their lending to businesses and consumers, and thus hurt the economy. Nonsense! That’s in essence what FDIC Vice Chairman Thomas Hoenig told Senate Banking Committee Chairman Mike Crapo and the committee’s senior Democrat, Sherrod Brown, inRead More

Posted On July 26, 2017By HoudiniIn Articles

Central Bankers ‘Are’ The Crisis

If there’s one myth – and there are many – that we should invalidate in the cross-over world of politics and economics,it‘s that central banks have saved us from a financial crisis. It’s a carefully construed myth, but it’s as false as can be. Our central banks have caused our financial crises, not saved us from them. It really should -but doesn’t- make us cringe uncontrollably to see Bank of England governor-for-hire Mark Carney announce -straightfaced- that: “A decade after the start of the global financial crisis, G20 reforms are building a safer, simplerRead More

Posted On June 21, 2017By HoudiniIn Articles

What Is The Market Telling Us?

The entire global economy now depends on this stripped-of-information “market” for its stability. Ho-hum, another day, another record high in the S&P 500 (SPX). What is this market telling us? If you’re long, the market is screaming “you’re a genius!”: But other than that, what else is the market telling us? Is it telling us anything about the real-world economy and the open market for equities based in that real-world economy? Before we can answer “what is the market telling us?” we must first ask, “what can the market tell us?” That is, what isRead More
While investors pile into Tech Stocks based on endless promotion from the financial media, the US economy is rolling over. Last week the NY Fed downgraded its economic forecast for 2Q17 to just 1.9%. Even worse, it is now forecasting 2017 total growth to be a measly 1.5%. Yes, 1.5%. There is a clear trend to this chart… and it’s NOT up. Source: NY Fed Wait, it gets worse. The Citi Surprise Index has collapsed to levels not seen since 2011. Source: Yardeni Research Why does this level matter? The lastRead More

Posted On June 5, 2017By HoudiniIn News

Central Bank Cash Flood Swells over Bond Danger

The good news for bullish debt investors is that riskier assets will probably keep rallying in the near term. The bad news is that the longer the rally continues, the more these investors stand to lose of their principal investments down the line. That’s because companies and consumers have substantially boosted their leverage in the past few years as central bankers worldwide flood the market with cash to suppress borrowing costs. This implies lower recoveries in the future, according to Matthew Mish, an executive director in global credit strategy at UBS AG. In otherRead More
Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke. On March 16th, the New York Times carried reportage by Peter S. Goodman, Keith Bradsher and Neil Gough, which was titled “The Fed Acts. Workers in Mexico and Merchants in Malaysia Suffer.” The theme of their extensive reportage is that U.S. monetary policy is the elephant in the room. It is the elephant that swings exchange rates and capital flows to and fro in emerging-market countries, causing considerable pain. The real problem that all ofRead More

Posted On March 30, 2017By HoudiniIn News

Rising likelihood of OPR hike

KUALA LUMPUR (March 28): The stronger-than-expected inflationary pressure — based on the consumer price index (CPI) that has climbed at the fastest pace in eight years at 4.5% — raises the likelihood of a hike in overnight policy rate (OPR) by Bank Negara Malaysia (BNM). BNM may raise its OPR by 25 basis points (bps) to 3.25% by year end from the current 3% as inflation expectation implies negative real interest rates, TA Securities wrote in a research report yesterday. TA Securities forecasts March CPI may rise 5.1% from aRead More
On a day where gold and silver are once again surging to the upside, James Turk spoke with King World News about what is so unbelievable about today. Is It This Easy To Predict The Gold Price? James Turk:  “I have an amusing story to tell, Eric. Anyone who trades gold will appreciate it. Earlier today when the Apr Comex gold contract was up 1% from Friday’s close, I sent a message on the internal Goldmoney system saying:  “Gold is up 1%, so the algos are out. With Comex option expiry tomorrow and OTCRead More