Bad debts suffocated the economy for years. Low interest rates — not debt write-offs — were the way to deal with it.
The bullish signals just keep coming in this mad, mad financial world. But they’re never on the front pages of the newspapers.
Interest rates may stay low for some time, and the move by the Japanese life insurers suggests a big real estate cycle might still be in front of us.
Based on the Shanghai Accord and the dynamics of currency cross-rates, we expect the strong yen trend to continue for several years. That’s bad news for major Japanese corporations.
The two most important equity markets right now are the US and Chinese ones. We look to both as a barometer of investment propensity.
It’s the first Tuesday of the year that the Aussie central bankers will get together and make an interest rate decision.
Make no mistake, the currency wars won’t have a happy ending. Years of low interest rates and money printing won’t result in a victory that anyone can be proud of.
As soon as the central banks try to withdraw stimulus, the economy and markets slump. The West is only six years into its super-low rate interest rate experiment.
Japan has kept interest rates low for nearly 20 years. The Bank of Japan cut rates to 0.5% in late 1995. The rate has been at that level or lower since then. It’s currently 0%...