GOLD 0.51% $1,391.7 gold futures

Look I don’t know what that poe chart even represents without...

  1. 13,021 Posts.
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    Look I don’t know what that poe chart even represents without any labels

    The boj- fed and boe ecb own huge amounts of bonds - as buyers they have driven the prices/ rates down- that was their purpose - major central banks have and hold truckloads of bonds- how do you think the prices have come down for a decade

    Anyway- as for cba- plenty of provisions made- well up on 2018 - as a percentage its high- non performing loans in an economy with lowest ever rates and subsequently slashed twice tells a story

    Many assets prices have exploded for over a decade thanks to a credit fueled boom fueled by lower and lower rates - this is a fact

    Credit curve inversions have everyone suddenly saying it signals recession- the truth is inverted rates seriously diminish the incentive for banks to create credit as they borrow short end and fund longer- lower rates reduce nim and credit creation is difficult because the margin is very small for the risk

    Lower credit growth due to rates lower- regulatory requirements mean that the asset prices pumped by cheap money are at risk

    Increases in provisions and falling profits when assets prices are supportive of super low rates is a big problem imo

    If rates falling and debts rising- all good until the rates reverse and the debt has to be accumulated
 
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