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Can the Fed Really Print Money? What Would Negative Interest Rates Do?

MishTalk

Despite the unprecedented increase in the Federal Reserve’s balance sheet, growth in M2 over the first nine months of this year fell below its average rate of growth over the past 115 years, a time when the growth in the monetary base was stable and quite modest. Please play the following video for a big laugh. So which is it?

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"World Running Out of Positive-Yield Bonds"

MishTalk

Banks and insurers need Germany’s AAA securities to bolster their balance sheets and pension funds mop up bunds to match their liabilities. Link if video does not play: Homer Simpson Cannot Get Enough. 31, Germany had 1.16 trillion euros of tradable securities.

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Mish's Global Economic Trend Analysis: FHA Swamped By Defaults.

MishTalk

According to Ligon, the only way the FHA can avoid a bailout is to reduce its market share by lowering maximum loan limits to $325,000 over the next four years, raise credit requirements for borrowers, and institute “burden sharing” with loan originators by reducing insurance coverage from the current 100 percent to 50 percent by 2016.

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Mish's Global Economic Trend Analysis: Ritholtz on Gold and on.

MishTalk

If there was ever a time when monetary insurance was needed, it is today. Contrary to 1979/1980, the current gold bull market will unlikely end due to a sudden strong rise in interest rates, as the balance sheets of governments, households and corporations are tainted by huge debt. Mish Audio Video.

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