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11 May 2023 3 minute read 0 comments ulriklykke
The US Federal Reserve raised rates by 0.25% last week, increasing its benchmark rate to between 5% and 5.25%: the highest since 2007. Although most investors expect that this latest hike will be the last, Fed Chair Jerome Powell has left the door o...
3 May 2023 3 minute read 1 comment SweptOverNiagara
The markets were on the edge of their seats all week awaiting today's decision from the FOMC meeting. The FED raised rates as expected by 25 basis points although there were polls suggesting 85% of participants expected a pause while the remaining 15...
29 Apr 2023 4 minute read 1 comment SweptOverNiagara
A week or so ago, I got word that TD Bank here in Canada was suddenly the most shorted bank in the world. As it turns out, it's true. Even more striking is the amount of those shorts has increased by 45% this week! It was Ernest Hemingway, in his boo...
29 Mar 2023 3 minute read 0 comments ulriklykke
In wake of the latest events we have witnessed in the banking sector with several actors facing liquidity crunches as a result of rapid and large customer redemptions, financial markets have behaved surprisingly calmly over the last week. This is hap...
24 Mar 2023 2 minute read 3 comments SweptOverNiagara
Germany's Deutsche Bank, regarded as the most systemically important bank in Europe saw its shares drop some 9% overnight to a five month low after a sudden spike in CDSs (credit default swaps), which is basically insurance against default, reignitin...
22 Mar 2023 2 minute read 0 comments SweptOverNiagara
And there you have it! The FED just announced that key lending rates are going up to 4.75 to 5%. On top of that, they will continue with their quantitative tightening by offloading mortgage backed securities and treasuries. There was intense scrutiny...
21 Mar 2023 3 minute read 2 comments SweptOverNiagara
Canada's central bank led the charge in March, 2022 with its first of many successive rate hikes right up to January of this year bringing their key lending rate to 4.5% from near zero a year earlier. The FED followed suit a month later and has raise...
9 Mar 2023 2 minute read 0 comments SweptOverNiagara
One year ago, in March, 2022 the Bank of Canada began an aggressive rate hike that saw interest rate increases at each policy meeting, the last of which was at the end of January when the BoC raised by another 25 basis points to top out at 4.5%. Yes...
15 Jan 2023 5 minute read 5 comments SweptOverNiagara
You might be wondering, 'What is M2 Money Supply and what does velocity have to do with it?'. First of all, you're not alone. It took me a long time to truly understand what it is and it took me an even longer period to understand why the velocity of...
4 Jan 2023 1 minute read 4 comments Fabrynar.
The Federal Reserve, the central banking system of the United States, has taken a cautious approach towards Bitcoin and cryptocurrencies. In a two-page document released in these days, the Fed warned banks about the risks associated with cryptocurren...
