Search Results for: interest rates

The Libor scandal explained

Libor Scandal

According to news reports, UK banks fixed the London interbank borrowing rate (Libor) with the complicity of the Bank of England (UK central bank) at a low rate in order to obtain a cheap borrowing cost. The way this scandal is playing out is that the banks benefitted from borrowing …

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How the Economy Affects Mortgage Rates

Family home

The interest rates on mortgage loans have a direct effect on how much money will have to be repaid on a home. While home buyers are always aiming for the lowest interest rates possible, lenders have to cover for the risk by adjusting their interest rates accordingly. Only buyers with …

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Crisis spreads to China, Australia, Brazil, Canada, Sweden

Financial crisis

Earlier today, we posted an excerpt from IceCap Asset Management’s latest letter to investors focusing on the farce that is the Greek bailout #3. Which can be summarized simply by the following table… … and Keith Dicker’s assessment which was that “for Greece, it’s mathematically impossible to repay its debt” and that …

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NatWest bank may start charging customers to hold cash

NatWest bank charge customers hold cash

NatWest has said it may start charging customers to hold cash if the economy takes a tumble. The bank warned more than one million of its customers it could introduce negative interest rates if that were to happen. This would mean customers are effectively paying the bank to hold their …

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Australian unemployment rate hits 12-year high

Part time casual jobs employment

Unemployment has jumped to the highest level in more than 12 years, following a surprise fall in jobs growth. The jobless rate rose to a seasonally adjusted 6.4 per cent from 6 per cent in June, its highest point since August 2002. The economy lost 300 jobs in July: While …

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UK Student Loans Company Accused Of Spying On Applicants

UK students applying for a loan via the Student Loans Company (SLC) will have their personal Facebook page scrutinized to determine whether they qualify for funding. This comes after it was revealed that during the summer 150 applicants were spied on after applying for full maintenance loans due to being estranged from …

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Citibank to pay $425m to settle manipulation charges, no one jailed

Citibank manipulation charges settled

The Commodity Futures Trading Commission on Wednesday ordered Citibank to pay $425 million to settle charges including attempted manipulation and false reporting of several key currency-valuation benchmarks. The regulators said $250 million in the settlement relate to the U.S. Dollar International Swaps and Derivatives Association Fix between January 2007 and January 2012. The USD …

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Top pitfalls to avoid in the mortgage process

With the escalating prices of homes in the US, mortgage loans have become a popular financing option for those who dream of owning a home. Considering that buying a home is perhaps the biggest purchase you’ll ever make, it’s no surprise that there are multiple ways you can find yourself …

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What is the Sharp Drop in US New Home Sales Attributed To?

Home Sales America flag

In April 2017, US new home sales dropped after surging in March. The seasonally adjusted rate of new home sales in April was reported at 569K according to the Commerce Department. Analysts were anticipating an increase in the region of 610K. Sales of US single-family homes were 842K in May …

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Goldman Sachs is running scared

Oakland vs Goldman Sachs

The City of Oakland just offered Goldman Sachs a deal they can’t refuse: either renegotiate a toxic “interest rate swap” that costs taxpayers $4 million a year or never do business with the City of Oakland again. If other cities follow suit, Goldman will have to change its ways. Stand in solidarity with Oakland …

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Bank Stocks Loved Janet Yellen’s Congressional Testimony

Bank of America

Fed chair, Janet Yellen testified before Congress on Valentine’s Day, Tuesday, 14 February 2017. The Congressional hearing provided cannon fodder to traders looking to go long on bank stocks. Yellen expressed optimism about the state of the US economy, given falling unemployment numbers, rising inflation, and robust economic growth. She …

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Australia’s household debt-to-income ratio is at an all-time high

Australia household debt income ratio

The Bank for International Settlements has warned that record household debt levels amassed in the past decade have left Australians among the most vulnerable to a sharp rise in global interest rates. According to the Reserve Bank of Australia, household debt-to-income ratio for Australia is at an all-time high of 189%. …

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Brexit-proof your savings with a stocks and shares ISA

ISA Brexit

Whether you are for or against it, Brexit poses uncertainty regarding what the effects will be on the UK economy and the wealth of the individual. Will Theresa May continue with her hard Brexit approach if the conservatives win the general election, or will a surprise result mean we go …

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Buying a New Home: 6 Steps to Investing in Property

Buying a new home is a big financial decision, regardless of whether you’re a first or second-time buyer. However, before you buy a house, you must think carefully about your needs and budget to ensure you make the right choice. To have a hassle-free experience, read the six steps to …

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Federal Reserve unable to deal with next economic crisis

Federal Reserve Janet Yellen

From Filip Karinja, for Birch Gold Group Earlier this week, a Federal Reserve official made the stunning admission that its credit expansion and debt creation policy is no longer having any significant effect on the economy. Now, even those in the mainstream are joining those of us who have been saying it for …

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Loan Market Predictions for 2017

Loan market predictions 2017 house

The repeated nationalist victories in 2016 elections have shaken investors and left many afraid for 2017. Let’s look at loan market predictions for 2017 based on the information we have and trends we can safely project into the future. Continued Deflationary Pressures Drive Investor Decisions Institutional debt is deflationary. When …

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