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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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NIRP is making some serious headway. BoE cut its rate by 25bps and launched another round of QE but the interesting thing is this statement: Quote:The lowest cost of funding, the 0.25 percent Bank Rate, will be for banks that maintain or expand net lending to the economy and the BoE will charge a penalty rate if banks reduce net lending. http://mobile.reuters.co...inessNews/idUSKCN10E2SX
Two year gilts are hovering just above the NIRP boundary...it is a question of time before they dip below the zero mark. This will be followed by longer tenured notes. Working with this logic, a -ve interest regime could sneak into the US through the back door with or without the Fed's blessings. The only event that can stop this from materializing is a sovereign debt crisis. Unconventional monetary policies still rule the roost 8 years after the financial turmoil of 2008 with no tangible benefits. Meanwhile, the big economies are all creaking... The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Member Joined: 7/3/2014 Posts: 245
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Number of strong banks falls by 50pc on tough CBK rules http://www.businessdaily...tem-1-yem0joz/index.htmlIn the world of securities, courage and patience become the supreme virtues after adequate knowledge and a tested judgment are at hand.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Kudos to CBK for deal with this issue rather than waiting for a systemic event, which would lead to a big financial crisis.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 9/9/2015 Posts: 233
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To promote accountability, he should give the full performance list periodically "Buy when there's blood in the streets, even if the blood is your own."
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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hisah wrote:Kudos to CBK for deal with this issue rather than waiting for a systemic event, which would lead to a big financial crisis. How come the cartel haven't fought back this guy like the way matiangi is on deep oil fry now, is it because most kenyans have a higher ratings on opus ama? He is a reformist
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Spanish 10-year bond yield below 1 percent for the first timeThe wild wild west that is called the sovereign bond market. Mad house everywhere! $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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hisah wrote:Kudos to CBK for deal with this issue rather than waiting for a systemic event, which would lead to a big financial crisis. Positive step but may not forestall a crisis. The KE banking sector does not inspire confidence in investors. If a crisis unfolds it will make the interest bill redundant/moot till order is restored. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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These CB's will blow up the global economy into smithereens. Another unique problem comes up with BoE's expanded QE program: an offer-less market. The sovereign bond rally is getting to the parabolic spiking stage before imploding/flipping into a bidless market. Pension funds, insurance firms and banks caught holding onto these securities by then will become past tense. http://www.bloomberg.com...target-at-boe-qe-auctionThe main purpose of the stock market is to make fools of as many people as possible.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Negative Rates for the People Arrive as German Bank Gives InGetting there inch by inch where the public will flip into morbid hoarding mode. Cash ban will be enforced pronto to stem the hoarding. This will leave one avenue as the only place to hoard legally - bluechips stocks! Those parabolic rallies will be very dizzy! $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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hisah wrote:Nigeria could be kicked out of the MSCI Frontier Markets IndexQuote:MSCI has announced it is considering removing Nigeria from the MSCI Frontier Markets Index given restrictions on currency trading and the resulting deterioration of fx liquidity impacting investors’ ability to repatriate capital. This is a risk we’ve been highlighting for the last six months or so (see below) so shouldn’t come as a complete surprise, and JPMorgan and Barclays have already removed Nigeria from their respective local currency emerging market bond indices.
MSCI plans to announce its decision on or before 29 April– and in the meantime is seeking feedback from investors.
With this news, Nigeria's hopes of attracting private sector investors have been dealt another blow. This is unfortunate as we maintain there is much to like in Nigeria - if currency restrictions could be eased.
Nigeria's exclusion from bond indices and threatened exclusion from this key equity index, is because investors' ability to make that return is now jeopardised by currency restrictions.
Moreover, bond or equity index inclusion helps makes portfolio investors more sticky - they tend to invest around the benchmark weighting of a country. Indeed - Nigeria still has $0.5bn (NGN200bn) of equity investments in the country - because it is in this frontier index. Being excluded from such indexes creates a higher hurdle to attract future investments. Nigeria would have to become so attractive to foreign investors that they would make it an off-index investment. Someone is about to experience USD starvation! I expect the Naira to be taken to the cleaners again when that capital flight kicks in... It will be a bloodbath in the black market despite the capital controls. Kenyanwallstreet wrote:The Morgan Stanley Capital International, a leading provider of international investment decision support tools, announced in its latest review the inclusion of one Kenyan company into the MSCI Frontier Markets (FM) Small Cap Indexes and deletion of four others.
Morgan Stanley added Nation Media Group while removing Athi River Mining, CIC Insurance Group, NIC Bank & Cooperative Bank of Kenya from its MSCI FM Index in its latest Review for MSCI Equity Indices. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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@murchr Co-op bank and its sister company CIC kicked out. Hammering and shafting continues for the two counters. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Ericsson wrote:@murchr
Co-op bank and its sister company CIC kicked out.
Hammering and shafting continues for the two counters. I have not read reasons of relegation to knockout but that move speaks volumes! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Member Joined: 3/23/2011 Posts: 304
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Very interesting view of why Trump will be president..... http://michaelmoore.com/trumpwillwin/You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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If Trump was a market instrument, the shorts are heavily stacked on it. In the market single sided (popular) trades always end badly. The short squeeze will be a carnage to behold. A Trump election will rally the USD and the US markets! The Trump short squeeze will be powerful. As usual the crowd will be caught offguard!$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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CBs with NIRP Courtesy of Bloomberg  Cash in a Box Catches On as Swiss Negative Rates BiteQuote:“Because of the low interest rate level, we note increasing demand for insurance solutions for the storage of cash,” said Philipp Surholt at Zurich Insurance Group AG, among underwriters reporting a surge in such requests. “We’re seeing demand for coverage for sums ranging from 100 million to 500 million francs.”
For now, the SNB says it hasn’t seen evidence of widespread cash hoarding in Switzerland.
When NIRP hits mainstreet savers everything will flip over! Dizzy equities rally is the most likely expected outcome. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Ireland fights to restore investment reputation after Apple rulingQuote:Apple and the Irish government are both appealing against last week's European Commission ruling that the company's low tax bill in Ireland, where it is among the biggest multinational employers, constituted illegal state aid.   A campaign to redress the impact abroad has already begun and officials and multinational advisors say they are confident the order that Apple cough up 13 billion euros in back taxes will not interrupt record flows of investment into Ireland. EU is just nuts! Euroland is struggling to get out of a sticky deflation environment then they come up with this?! Nut case! Their NIRP is already making it hard for funds flow to stick around. The case for a strong USD continues... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Wells Fargo fined $185M for opening fraudulent accounts in customers' namesIndeed these are desperate times... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Deutsche Bank Says 35 Year Party Is Over For Bond BullsSovereign debt crisis circus coming soon. In such a scenario, equities will benefit the most as funds inversion goes parabolic during the panic. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Emerging Markets Lean Over the EdgeQuote:When investors all decide to stampede into the same asset, there's always the worry that the fast money in will be just as fast on the way out.
Investors have largely ignored this concern over the past few months and piled in developing-market bonds, especially those denominated in dollars. This debt has posted huge returns, dwarfing gains on U.S. government bonds and stocks. The nations benefiting the most have often been among the weakest, including Venezuela, Brazil and Sri Lanka.
The largest exchange-traded fund that focuses on this debt -- the iShares J.P. Morgan USD Emerging Markets Bond ETF -- just posted a record one-day withdrawal. That's a marked reversal for an ETF that has received more than $4 billion of deposits so far this year. Few expect the USD to stage a nasty parabolic as capital flies back into US assets. With NIRP in full operational in euroland and the Japs running one freak show on the same, that capital flight will be awesome as funds chase quality USD asset yields when reality strikes soon! $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Red alert on Australian property market. http://www.news.com.au/f...e41b1227ce654f66ed8d9837The main purpose of the stock market is to make fools of as many people as possible.
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