Draghi Makes U-Turn in Monetary Policy; Euro Drops

March 15 2019

President of the European Central Bank (ECB), Mario Draghi, stunned financial markets last week by announcing a U-turn in the Eurozone’s monetary policy. Instead of a long-awaited rate hike, Mario Draghi announced on the contrary a new monetary stimulus package. The Italian, among other things, pulled an old trick out of the ECB sleeve (the so-called TLTROs), mere months after the European version of quantitative easing was brought to a complete stop.

But it should be very clear to close

... »

Olav Dirkmaat

U.S. Economic Growth Still Lagging; Gold Mining Sector Consolidating

March 8 2019

While the press euphorically announced that economic growth in the fourth quarter of last year was better than expected (because: 2.9% growth in 2018), post-crisis economic growth has been among the most disappointing in history. Now that we have an estimate for the fourth quarter, the sad but true conclusion must be that the U.S. is setting an extremely upsetting record: 13 years in a row with annual GDP growth below 3%. All this despite Trump’s election promise to grow the U.S. economy at a

... »

Olav Dirkmaat

And What about the US Economy?

February 27 2019

Last week, the gold price closed near $1,325 per troy ounce, which is remarkable, since gold prices broke convincingly through the $1300-barrier after New Year’s Eve. Gold prices rallied even further by another three percent, topping $1340/oz, but slightly retreated last week. The motive?

... »

Olav Dirkmaat

Bloomberg: Auto Industry Heading for Troubles

February 18 2019

This week, I wanted to highlight the United States auto industry. In 2008, the real estate market was the main culprit: everyone was talking about the “subprime” mortgage-crisis. Subprime involves riskier borrowers with lower credit scores. Two years ago, I emphatically said that it this time around a recession will not revolve around subprime mortgages, but more than anything else subprime auto loans. And this is especially remarkable given the fact that in 2008 various large American car manufacturers were on the brink of collapse and eventually had to be bailed out by former president Obama.

... »

Olav Dirkmaat

1 | 2 | 3 | ... | 58