Posts Tagged ‘negative interest rates’

Notes From Underground: The Magician of Frankfurt Will Be Called to Answer

May 22, 2018

We’ve been discussing the problems in the Italian debt market at NOTES FROM UNDERGROUND for many years but with the Five Star/Lega coalition coming into government many of the issues that were once theoretical are now an increasing possibility. The Five Star group is openly proposing a debt restructuring for Italy in the hopes of spurring growth and improving the Italian unemployment situation. Economic growth in Italy has lagged the developed world economies and none more so then its neighbor, Germany.

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Notes From Underground: Mario Draghi Meets the Press

December 4, 2013

1. The Bank of England will announce its rate decision at 6 a.m. CDT and look for the status quo. Governor Carney has been pleased that the U.K. economy is gaining traction and the Brits’ QE program has been tapered for a quite awhile, meaning that the BOE‘s balance sheet has remained at 375 BILLION POUNDS in asset purchases. Inflation has been lowered while growth has increased. The rise in housing prices will be a concern but Carney seems to be comfortable decreasing the lending program to private borrowers while continuing to keep loans flowing to small and medium businesses. The BOE will keep rates at 0.5% and probably use a cautious outlook in reference to Europe so as not to excite STERLING BULLS.

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