It's a 'revolving door' of staff succession between the central banks and the finance industry. In the run-up to the 2007/08 crisis, regulation failed. It's practically bound to. When it comes to banking, we're dealing with big-money power brokers.
The truth is, nobody knows exactly when the big interest rate reset will come. I've been a proponent of the 'Interest rates will stay lower, and longer, than anyone believes'.
We’ll say straight up that our position remains the same – US interest rates aren’t going anywhere. Low interest rates are good for stocks for two reasons...
P2P lending has proven popular overseas because it offers a more attractive return for investors than an interest bearing account. And because of lower overheads, borrowers often end up with a lower interest rate from a P2P lender than a bank can offer.
One of the most important charts for any investor is the 10-year US treasury interest rate. It’s what investors demand in return for lending the US government their cash.
Will the the European Central Bank be forced to print? I think the answer is yes. Eurozone banks are still unwilling to lend - because they're still in a huge mess..
Rather than central banks boosting stocks, what if the boost comes from investors pouring money back into the market in the belief that a genuine recovery is underway?