The former Chairman of the Federal Reserve warned markets and officials of the dangers of the national debt in a Wall Street Journal op-ed Friday. Greenspan said that even with debt soaring almost $3 trillion in the last 18 months, investors and the administration seem curiously unconcerned with the danger of borrowing. Greenspan compared the… Read more.
Currencies & Interest Rates
Currency futures are likely to be affected in the coming months by China’s eventual decision on whether to stop artificially inflating its currency value. In recent testimony before the Senate Finance Committee, Treasury Secretary Timothy Geithner said that the U.S. is working on a variety of important trade issues, from enforcement of intellectual property rights… Read more.
Currency futures are likely to be influenced by recent downward pressure on the euro, which has continued to struggle at four-year lows in recent days. The euro got off to a difficult start this week as the market reacted negatively to news that Spain had experienced a credit downgrade, following on the heels of previous… Read more.
For people who trade financial futures, municipal bonds have often been considered a stable investment option. However, the recession and rising budget costs have produced shortfalls in a growing number of cities around the country, pushing some closer to the risk of bankruptcy and defaulting on their bonds. One recent high-profile example has been Harrisburg,… Read more.
In a potentially significant development for investors in currency futures, China has indicated that it plans to hold on to its bond holdings from the euro zone. The euro has had a difficult couple of weeks brought on by the region’s sovereign debt crisis and concern about whether the continent’s leaders will be able to… Read more.
Currency futures may remain a shaky proposition in the coming months amid renewed doubts about the euro‘s long-term prospects. Markets had been showing signs of recovering from previous worries about the euro that carried the Dow Jones Industrial Average to below 10,000 earlier in the week. Earlier in the month, European officials also unveiled a… Read more.
Investors who are interested in 30-year Treasury bond futures can take heart from a recent report by Moody’s indicating that the U.S. is in little danger of losing its AAA credit rating in the short term. However, a Reuters report recently quoted the report as a rapidly rising ratio of debt to gross domestic product… Read more.
For decades, 30-year Treasury bond futures have been an attractive option to investors drawn by the creditworthiness and stability of the U.S. government. However, there is growing speculation among financial experts as to whether this will always be the case, especially now that free-spending European nations are starting to see their own longstanding debts come… Read more.
Investors in commodities futures may want to keep an eye on the Chinese economy as they decide which, if any, materials will present solid opportunities in the coming months. Rising industrial production in emerging nations has accounted for a growing percentage of the demand for a wide variety of metals and other materials that are… Read more.
Chinese currency futures have not been immune from growing worldwide concern about the euro zone and its financial prospects. The euro itself has been hit hard amid concern that one or more member states could end up defaulting on their substantial debts, potentially leading to a new round of financial losses for some major banks… Read more.