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Sunday, 21 January 18:37 (GMT -05:00)



Business And Politics News

The Era of Cheap Money from Central Banks is Over


According to two major investment banks – Citigroup and JPMorgan, the days of cheap money and low interest rates are nearly gone after almost 10 years since the last global crisis. They warn us that major central banks around the globe (including the ECB, for example) are going to start toughening their monetary policies in 2018 at the fastest pace in 12 years.
 
The thing is, the global economy has been growing faster than ever since 2011. This is expected to make the central banks raise the key interest rates by at least 1%, which is something we haven’t seen since 2006. That said, in 2018 we are going to see true monetary toughening, Citigroup experts are convinced.
 
Citigroup expects the Federal Reserve to raise the rates at least 3 times throughout 2018. All in all, they expect the Fed’s rates to be increased by at least 2 percent points, which is something we haven’t seen since 2008. At the same time, the central banks of Great Britain, Australia, New Zealand, Sweden , and Norway are expected to rise their rates by at least 1 percent point. All in all, the central banks from developed economics are expected to raise the rates by 0.4-1 percent point on average.

JPMorgan goes beyond those predictions. They expect the Fed's rates to be raised at least 4 times in 2018 – 1,2 percent points in total. The last time the rates grew that fast in 2006 before the global crisis.

At the same time, the name a few price bubbles that are going to hit the global financial market in 2018. One of them is Bitcoin, the world’s first and most expensive cryptocurrency that has already grown by 1800% this year.

Other experts say that it's the U.S. stock market that’s going to be the reason for the expected interest rate hikes in 2018. The thing is, the market cap has increased by 1600% over the last 9 years. Also, there is a group of experts who put the blame on the credit boom in China while the Chinese public debt is 3 times as high as the Chinese GDP.
 

 

Since the 2008-2009 financial crisis, all the central banks altogether have cut their interest rates more than 700 times and has pumped into the global economy over 16 trillion dollars.

 

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Any Brexit Scenario Will Damage the British Economy

In practice, there can be multiple Brexit scenarios, i.e. the scenarios of how the United Kingdom will exit the European Union. Experts say that almost any scenario will damage the British economy to some extent. Moreover, there will be some economic damage to both the UK, the USA, and the EU.

Publication date: 25 December 02:48 AM

Will Bitcoin Mining Leave the World without Electricity?

It seems like people have been obsessed with cryptocurrencies. While loading up on them like crazy, they seem to have forgotten that everything has a price. When it comes to mining cryptocurrencies, this is all about the growing deficit of electricity. The thing is that all those mining farms consume tons of energy. Maintaining that cryptocurrency infrastructure is rather energy-consuming as well since all of that requires really powerful and capacious hardware, which consumes big amounts of electricity.

Publication date: 04 December 01:04 AM

Brexit and Bank Capital Outflow

Since the Brexit referendum that took place in the United Kingdom last year, European banks have already withdrawn from the UK as much as 350 billion euros. That’s reported to be the official stats provided by the European Union, The Financial Times reports.

Publication date: 30 November 01:52 PM

Fed Will Raise Interest Rate 4 Times in 2018, Goldman Sachs Experts Predict

According to the experts working for Goldman Sachs, one of the largest investment banks in the world, the U.S. Federal Reserve is probably going to raise the key interest rate 4 times next year.

Publication date: 25 November 04:05 AM

Referendum In Catalonia May Hit Europe Harder Than Brexit

The possibility of Catalonia exiting from Spain is dangerous to the integrity of the European Union, even more dangerous than the Brexit. This is what The Daily Telegraph thinks on the matter.

 

Publication date: 01 October 04:58 AM

Trump Announced Revolutionary Tax Cuts for Americans

On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.

Publication date: 29 September 07:51 AM

What is so precious about Ukraine for international investors? An American businessman shares his opinion

More and more international investors have been paying attention to Ukraine as a promising area for profitable investing. Cody Shirk, an American entrepreneur, traveler and investor, is now urging international investors to look at Ukraine as a country with really great investment potential, Market Leader reports.

Publication date: 27 September 03:16 AM

China’s Debt Bubble May Trigger Another Global Financial Crisis

The Chinese economy keeps on slowing down as China’s debt bubble is growing. International experts are concerned about that. They are afraid of a new global financial crisis, Market Leader reports. The thing is, the Chinese economy is not growing fast enough anymore. Beijing has to admit the economic slowdown. The entire international expert community is now closely watching this slowdown and expressing their concerns about China’s economic prospects amid the mentioned economic slowdown and inflating debt bubble.

Publication date: 25 September 12:44 PM

Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM

Bitcoin Market Cap Exceeds $150 Billion

Bitcoin’s market capitalization exceeded $150 billion the other day. At the same time, the international expert community keeps on pondering upon the near-term prospects of Bitcoin and other digital currencies.

Publication date: 03 September 11:22 PM