“The stimulus the country urgently needs is not experimental and dangerous monetary policy.”
A curious phenomenon.
The flight into US dollars! Dollar-denominated debts of Mexican companies weigh heavily.
The ECB promises to “monitor markets closely.” Then it came out with a new bond buying binge.
Not even the “bankruptcy” word hanging over super-troubled Italian infrastructure giants Atlantia and Autostrade, whose bridge collapsed last year, can get their bonds to reflect any kind of serious risk.
Something funny’s happening in NIRP land: long-term yields are rising, negative yields are turning positive, and investors are getting punished for having handed their brains to central banks.
Amid a slew of problems.
Latest data is out. Folks who hoped the Renminbi would break the dollar hegemony have to be very patient.
Today’s rate hike by the central bank of Sweden ends an absurdity. ECB and other central banks with negative rates are getting ready to follow.
“The high household debt load is the most important risk facing the financial system.”