The Independent Investor: What's Libor To You?By Bill Schmick,
02:41PM / Friday, June 29, 2012 | |
You may want to pay attention to the unfolding scandal swirling around one of the world's oldest and most important financial benchmarks. It's called the London Interbank Offered Rate and its level can directly impact the interest rate you pay on an adjustable rate mortgage and other consumer loans.
The London Interbank Offered Rate (commonly known as Libor) is supposed to be the collective best guesses of 18 of the world's largest global banks. They determine the interest that borrowers should be charged on any given day for short-term loans. Libor is set daily in London by the British Bankers Association (BBA), which eliminates the highest and lowest rates supplied by the member banks 0 Comments
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@theMarket: Banking Crisis Still With UsBy Bill Schmick,
05:05PM / Friday, June 22, 2012 | |
Five of the six largest U.S. banks were downgraded on Thursday by credit agency Moody's Investors Service. In Europe, Spain said its banks will need another $78 billion in new capital while the ECB is planning to relax rules for lending to other banks in Southern Europe. Is it any wonder banks aren't willing to lend?
Altogether Moody's downgraded a dozen of the world's largest banks, those hardest hit had the largest exposure to capital markets activities. These are banks that take huge positions in stocks, bonds, derivatives and other securities. New rules implemented by Congress after the financial debacle of 2008-2009 was supposed to prevent our nation's banks from ever-again becoming 0 Comments
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The Independent Investor: Let's Twist AgainBy Bill Schmick,
04:48PM / Thursday, June 21, 2012 | |
This week the Federal Reserve Bank extended "Operation Twist" until the end of the year. The markets shrugged off the announcement as simply more of the same kind of stimulus that has failed to generate a lasting recovery in the past. Some say the Fed has run out of options, but I wouldn't be so quick to count the Fed out.
"Operation Twist" is the Federal Reserve Bank's third attempt at quantitative easing in as many years. It was intended to lower long-term interest rates by selling short-term U.S. Treasury bonds that it owns and using the proceeds to buy longer-dated Treasury bonds. It worked fairly well, as far as declines in long term rates are concerned, but did 0 Comments
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@theMarket: Risk OnBy Bill Schmick,
10:56AM / Saturday, June 16, 2012 | |
It is time to put cash to work. This weekend, the Greek electorate goes to the polls. Anything can happen and that's why it is a good time to invest.
I would rather be in the markets going forward, despite the possibility that voters may elect the more radical, anti-austerity party. If so, the markets would probably sell-off. I would be a buyer of any further stock market declines.
On the other hand, the more moderate parties might win in Greece and markets would rally next week on the news. Either way, I am a buyer even though the markets could still experience a sell-off. Something could go wrong in the short-term and we could see the 1,250 level tested on the S&P 500 Index. I 0 Comments
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The Independent Investor: Made In America ReturnsBy Bill Schmick,
01:01AM / Friday, June 15, 2012 | |
Factory jobs are returning to the United States. So far it is only a trickle but the point is that the trend has begun to reverse and that’s good for America.
The number of manufacturing jobs in this country has been growing over the last two years. Factories have added 300,000 jobs since 2009. In the first month of this year alone manufacturers have added 50,000 jobs, which was the biggest monthly increase in a year. Those numbers are positive and a good start but let's keep the gains in perspective.
Despite this recent progress, it still leaves us with 5.5 million fewer factory jobs than in July 2002 and 12 million less than we had in 1990. I don't believe we will ever 0 Comments
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| Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights. |
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