Presented by Robert P. Murphy at “Austrian Economics and the Financial Markets,” the Mises Circle in Manhattan on 22 May 2010 in New York, New York. Includes an introduction by Mises Institute president Douglas E. French.
Duration : 0:30:3
Afshin Rattansi in Tehran talks to Max Keiser in Paris about the global coordination of rate cuts failing to stem a collapse in equities
Duration : 0:6:42
Also check me out on http://www.facebook.com/PeterSchiff and http://twitter.com/PeterSchiff
Duration : 0:8:1
Update – Fed losing control of bond market?… http://www.youtube.com/watch?v=g5V-yqBn-2w
Conventional wisdom which suggests that rising interest rates crush stock prices and that falling rates stimulate the market.
I first published a version of this chart on a message board in 2007, when the Fed cut rates after a market selloff. I’m not unique in charting this relationship, nor in using it to challenge conventional thinking, but I do think that I have something to contribute to the discussion.
At that time, in 2007, the market was struggling and the consensus was that cutting rates would ’save the day’.
This chart suggested otherwise and was subsequently proved correct. Rates were slashed but the market continued to fall – just as it had done from the peak in 2000.
I’m afraid it is now time to look at this chart from the other perspective. Stocks have made a major move up, rates have bottomed but rumblings are being made that they will rise over coming months.
Clearly, interest rates and stocks have, during the period in question generally enjoyed a surprising relationship. There was a period from 1995 to 1998 where rates were falling while the market rose but taking simple tops and bottoms in 2000, 2003, and again in 2007 it certainly looks as though stocks and rates have a correlation – and that stocks lead the relationship, not the other way around as is generally touted.
Why would this be – surely rising rates should kill the market, and easing of rates simulate. Isn’t that what we’ve just seen in the recent rally as liquidity from 0% interest rates gushed into the market?
How the Fed ’sets’ interest rates…
http://mises.org/story/2728
Jim Cramer ranting to “cut rates and save the market”:
SPY vs TLT (Bond fund)..
http://finance.yahoo.com/q/ta?s=SPY&t=5y&l=on&z=m&q=l&p=&a=&c=tlt
The yield curve…
http://stockcharts.com/charts/YieldCurve.html
Duration : 0:9:49
Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that record-low interest rates are still needed to ensure that the economic recovery will last and to help cushion the sting of high unemployment. (Feb. 24)
Duration : 0:0:59
Before the House Financial Services Committee, Federal Reserve Chairman Ben Bernanke and Rep. Maxine Waters (D-Calif.) engaged in a verbal spar over whether raising federal funds would or would not cause mortgage rates to rise
Duration : 0:3:21
Before the House Financial Services Committee, Federal Reserve Chairman Ben Bernanke and Rep. Maxine Waters (D-Calif.) engaged in a verbal spar over whether raising federal funds would or would not cause mortgage rates to rise
Duration : 0:3:21
Schiff Report video blog Oct. 23 2009 Also check me out on
http://www.facebook.com/PeterSchiff and http://twitter.com/PeterSchiff
Duration : 0:6:57
Research Edge’s Keith McCullough says investors should get ahead of the Fed’s forecasts.
Duration : 0:2:55
also check me out on http://www.facebook.com/PeterSchiff and http://twitter.com/PeterSchiff
Duration : 0:9:28