How the Fed Engineered Massive Stock Speculation

In October 2019 Federal Reserve Chairman Jerome Powell announced the Fed would immediately begin purchasing $60 billion per month of short-term U.S. Treasury Bills. While investors cheered the return of Quantitative Easing, Powell cleared stated in his press release this was not Quantitative Easing since it was designed to restore dollar liquidity to the banks. … Read more

Why Large Banks are Buying Treasury Bonds, and Why You Should Too

In the decade following the Great Financial Crisis, large commercial banks have purchased $1.690 trillion of U.S. Treasury securities, more than doubling their holdings in the past ten years. A surge of buying occurred following June 2018, when most analysts and experts were predicting interest rates were about to skyrocket, as large commercial banks began … Read more

If You Think Interest Rates are Low Now, Just Wait Until This Happens

Most investors believe interest rates are too low, as they have fallen steadily since 10-year Treasury yields peaked at 15.84% back in September 1981. When asked why rates should fall, most investors believe inflation is finally coming or they believe interest rates cannot continue falling since they are already near their historic lows. If only … Read more

The Best Indicator of Interest Rates Says Rates Are Headed Much Lower

Every quarter the Fed surveys senior loan officers from 76 domestic and 22 foreign banks about their lending practices, which includes standards, terms on and demand for bank loans over the prior three months. The Senior Loan Officer Survey (SLOOS) is a lagging indicator since it looks at the prior three months, but it appears … Read more