Posts filed under “Fixed Income/Interest Rates”

Interest Rates Are Manipulated

If We Don’t Break Up the Big Banks, They Will Manipulate More and More of the Economy … Making Us Poorer and Poorer

Interest rates are rigged:

Derivatives Are Manipulated

The big banks have long manipulated derivatives … a $1,200 Trillion Dollar market.

Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed: through gamed self-reporting.

Currency Markets Are Rigged

Currency markets are massively rigged.

Commodities Are Manipulated

The big banks and government agencies have been conspiring to manipulate commodities prices for decades.

The big banks are taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity.

And they are using these physical assets to massively manipulate commodities prices … scalping consumers of many billions of dollars each year.

Gold and Silver Are Manipulated

The Guardian and Telegraph report that gold and silver prices are “fixed” in the same way as interest rates and derivatives – in daily conference calls by the powers-that-be.

Oil Prices Are Manipulated

Oil prices are manipulated as well.

Everything Can Be Manipulated through High-Frequency Trading

Traders with high-tech computers can manipulate stocks, bonds, options, currencies and commodities. And see this.

Manipulating Numerous Markets In Myriad Ways

The big banks and other giants manipulate numerous markets in myriad ways, for example:

  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here, here, here, here, here, here, here, here, here, here, here and here
  • Pledging the same mortgage multiple times to different buyers. See this, this, this, this and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Participating in various Ponzi schemes. See this, this and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments

The Big Picture

The big picture is simple:

  • The big banks manipulate every market they touch
  • The government has given the banks huge subsidies … which they are using for speculation and other things which don’t help the economy. In other words, propping up the big banks by throwing money at them doesn’t help the economy

Get it? Break up the big banks, or they will continue to take over and manipulate more and more of the economy … increasing their profits while making everyone else poorer.

Category: Fixed Income/Interest Rates, Think Tank

Case-Shiller: Home Prices Increase in May 2013

Click to enlarge
Chart

Key data points:

•  Home prices show increases of 2.5% and 2.4% for the 10- and 20-City Composites in May versus April.
•  Dallas and Denver reached record levels surpassing their pre-financial crisis peaks set in June 2007 and August 2006.
•  This is the first time any city has made a new all-time high.
•  All 20 cities increased from May 2012 to May 2013 and from April 2013 to May 2013.
•  In May 2013, the 10- and 20-City Composites posted annual increases of 11.8% and 12.2%.
•  The Southwest and the West saw the strongest year-over-year gains.
•  The overall report points to some shifts among various markets: Washington DC is no longer the standout leader and the eastern Sunbelt cities, Miami and Tampa, are lagging behind their western counterparts.

 

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Category: Fixed Income/Interest Rates, Real Estate

Detroit, Munis, A Follow Up

Detroit, Munis, A Follow Up David R. Kotok Cumberland Advisors July 26, 2013     As a follow-up to the Detroit-Muni Bond series we have published, here are additional views: 1. John Ruiz of Morgan Stanley Matrix offers this: “Note to cross-over buyers: if you see Meredith Whitney on your TV screen, and she is…Read More

Category: Fixed Income/Interest Rates, Think Tank

Post-Detroit Filing, Munis Are Cheap

Click to enlarge   Kotok via David Wilson: Municipal bonds are an “outrageous bargain” in the wake of Detroit’s bankruptcy filing, according to David R. Kotok, Cumberland Advisors Inc.’s chairman and chief investment officer. As the CHART OF THE DAY shows, the highest-rated notes and bonds of state and local governments yield more than Treasuries…Read More

Category: Fixed Income/Interest Rates, Legal

More on Munis, Detroit, Bloomberg, Whitney & Wilson

More on Munis, Detroit, Bloomberg, Whitney & Wilson David R. Kotok Cumberland Advisors, July 24, 2013     In our recent commentary on municipal bonds and Detroit, we argued in favor of buying the highest-grade AAA tax-free municipal bond It currently yields more than the corresponding taxable US Treasury obligation. Meredith Whitney, Muni Cassandra emeritus…Read More

Category: Fixed Income/Interest Rates, Think Tank, UnGuru

Cheap Munis, Not Detroit

Cheap Munis, Not Detroit David R. Kotok Cumber July 22, 2013     We thank Michael Wilson of Morgan Stanley Wealth Management and FactSet Research Systems for a compilation of returns. Michael’s commentary in July talked about how “There was no place to hide in fixed income.” We agree, although we think hedging dampened volatility…Read More

Category: Fixed Income/Interest Rates, Think Tank

Rising interest rates could mean the window to fix infrastructure on the cheap is closing Barry Ritholtz, Washington Post, July 12     Thanks to the Federal Reserve’s zero interest rates and quantitative easing policies, borrowing costs are near generational lows. The costs of funding the repair and renovation of America’s decaying infrastructure are as…Read More

Category: Fixed Income/Interest Rates, Taxes and Policy

Short Looks Beautiful to Bond Investors

Nice chart from WSJ looking at various ways to express Bond trades; note the average duration is very short, and is in green at the far right:   Click to enlarge Source: WSJ

Category: ETFs, Fixed Income/Interest Rates

Golden Opportunity to Update Infrastructure Will Soon Be Gone

>   My Sunday Washington Post Business Section column is out. This morning, we revisit our October 2011 discussion about infrastructure repair. The present conversation is about the once in a lifetime opportunity to finance these works at historically low interest rates, which are now starting to rise. Here’s an excerpt from the column: “Thanks…Read More

Category: Fixed Income/Interest Rates, Taxes and Policy

Monetary Policy Tightening and Long-Term Interest Rates

Monetary Policy Tightening and Long-Term Interest Rates Pedro Amaral FRBC 07.09.13     The Federal Open Market Committee (FOMC) has maintained an accommodative monetary policy ever since the 2007 recession, and some financial market participants are concerned that long-term interest rates may increase more than should be expected when the Committee starts to tighten. But…Read More

Category: Federal Reserve, Fixed Income/Interest Rates, Think Tank