DJI ytd = down 7%
took back 25% of it's ytd losses today.
DJI ytd = down 7%
took back 25% of it's ytd losses today.
Ghost of Igloi wrote:
You are stupid
Igy resorts to the LCD.
Hey his handle was "long time $tupid" and he said the markets would be up or down today when they are closed.
It was a bad joke.
My apologies.
Igy
Ghost of Igloi wrote:
agip,
Essence of the article if you are a Bull.
0.7% 4th Q US GDP
-6% start to S&P Earnings
Japan is so bad it goes to negative interest rates
Hey everything is awesome. All clear signal to buy stocks.
Igy
A clear buy signal. Good advice.
Ghost of Igloi wrote:You are stupid, the market is closed on Saturday.Yeah, that was the key thing to pick up on in my post... :-)
Dumby,
The market goes up, the market goes down.
How profound.
The sun goes up, the sun goes down.
How profound.
A poem by Igy.
Ghost of Igloi wrote:
I am assuming ZIRP cannot go to low before people hoard bank notes.
Can you explain what you mean by this?
Jamin,
Sure. If banks charge you for holding deposits, at some point if the cost is too high people would keep it under their mattress.
Igy
Ghost of Igloi wrote:
Jamin,
Sure. If banks charge you for holding deposits, at some point if the cost is too high people would keep it under their mattress.
Igy
I thought you said "If ZIRP goes too low." Are we talking about interest rates going higher or lower? Does lower than zero mean higher? I'm still confused.
Jamin,
I just checked the rate on a 2 year JGB (Japanese Government Bond) and the yield was -0.09%. So I am assuming bank depositors in the near future may be charged a fee on deposits, so technically no longer ZIRP but NIRP. As you know this supposedly will cause savers to spend, or stick some Yen under the futon.
Igy
Jamin,
The following article discusses similar quandary of Sweden's intrest rate policy of how low can you go:
Igy
Ghost of Igloi wrote:
Jamin,
I just checked the rate on a 2 year JGB (Japanese Government Bond) and the yield was -0.09%. So I am assuming bank depositors in the near future may be charged a fee on deposits, so technically no longer ZIRP but NIRP. As you know this supposedly will cause savers to spend, or stick some Yen under the futon.
Igy
Weren't some European rates negative last year? But US rates rose modestly. There would appear to be no correlation. You are fear mongering.
It doesn't cause people to "just spend", or invest, it causes them to do 2 things, at least among the euros I know:
1) move cash elsewhere,
2) move out of cash into gold and other high-value stores of wealth, that do not have ongoing carrying costs such as taxes and maintenance.
Ferrari,
Fear mongering? What in my post qualifies as such? Perhaps your views of central bank policies are based more on wishful thinking than facts?
Here is a good article by John Hussman that discusses Japan's recent policy moves in his weekly commentary:
http://www.hussmanfunds.com/wmc/wmc160201.htm
Igy
Maserati,
As John Hussman notes these "deranged" policies strike a tone of desperation. The market could have a revulsion to Japan's move.
Igy
The evil and wrong David Stockman has written a thoughtful article on the FANG stocks and recent market action:
http://davidstockmanscontracorner.com/apple-fangs-and-monetary-fools/
Igy
Ghost of Igloi wrote:
Ferrari,
Fear mongering? What in my post qualifies as such? Perhaps your views of central bank policies are based more on wishful thinking than facts?
Assuming US banks will start charging depositors is fear mongering. The US is not Japan or Europe. That is a fact, not wishful thinking.
Ferrari,
My post was referring to Japan. Besides my view is the Fed is not on the NIRP path.
Igy
Feb. 22, 2010
"If it were positive to take interest rates into negative territory I would be voting for that," she told reporters after the speech.
http://www.reuters.com/article/usa-fed-yellen-idUSN2222725320100222
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Ohhh, I'm pretty sure that it will be "positive"...