In layman’s language, this article discusses the too-big-to-fail phenomenon, the subprime crisis of 2008, Lehman Brothers bankruptcy, AIG’s bailout, Credit Default Swaps, and the current Credit Suisse situation.
Continue readingThe Ramifications of Fed’s Interest Rate Hike
The annual inflation rate in the US unexpectedly accelerated to 8.6% in May 2022, the highest since December of 1981. As a result, the Fed raised its benchmark rate by 75 bps — the biggest increase since 1994.
Continue readingDoes The Inverted Yield Curve Signify an Incoming Recession?
Last week, the carefully monitored yield differential between the 2-year and 10-year Treasury notes inverted. The yield on two-year Treasury notes reached 2.44 %, while the yield on 10-year notes was 2.38 %.
Continue readingUS Labour Data Miss Estimates, Likely to Impair Fed’s Tapering Schedule
When the US government reported November employment figures last week, several headline writers focused on the bad news. However, the data in the report was mixed and, to some extent, puzzling.
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