Deutsche Bank’s Troubles Raise Worries About the Future of the Euro Zone
The euro banking sector is huge: In April 2018, its total balance sheet amounted to 30.9 trillion euro, accounting for 268 per cent of…
How Central Banks Stoke Stock Prices
Reading through Security Analysis, the roadmap for investing first published in 1934 by Benjamin Graham and David L. Dodd, I learned something quite interesting: The basis…
Central Banks Put a Safety Net Under Financial Markets
Most early business cycle indicators suggest that the global economy is pretty much roaring ahead. Production and employment are rising. Firms keep investing and…
The Fed’s Great Unwind: Will It Sink Us?
In the eyes of many people, the Federal Reserve (Fed) is an indispensable institution. We are told it supports growth and employment, fends off…
Are Markets Really as Calm as they Seem?
Indicators for financial market “stress” have reached their lowest levels in decades. For instance, stock market volatility has never been this low since the…
Central Banks Are Hiding the True Price of Risk
If you invest your money, you will have to deal with numerous risks. For instance, if you buy a bond, you run the risk…
The Fed Remains on Course – to Trouble
The Federal Reserve (Fed) is widely expected to continue to tighten its monetary policy this year. According to a latest Reuters Poll, the Fed…
How Long Can the Fed Keep the Boom Going?
The US bond market trades at a quite high valuation. For instance, the 10-year US Treasury bond presents a price earnings (PE) ratio of…
The Next Step in Europe’s Negative-Interest-Rate Experiment
The European Central Bank (ECB) pushed its deposit rate to minus 0.4 percent in April 2016: Since then, euro area banks must pay 0.4…
Central Banks May Choose Helicopter Money Over Negative Rates
The US Federal Reserve (Fed) is considering raising rates. Is the “normalization” of interest rates about to happen which savers and investors have been…