Tag Archive for: falling rates

Rising Rates Falling Assets, Report 30 Dec 2018

Last week, we wrote about the concept of discounting. This is how to assess the value of any asset that generates cash flow. You calculate a present value by discounting earnings for each future year. And the discount rate is the market interest rate. We said: “If the Fed can manipulate the rate of interest, […]

Liquidity Preference Rising, Report 3 Jun 2018

Picture a scene in one of those action moves. Two guys are fighting for control over the steering wheel. The car is going 75mph, the road is narrow, and there is a drop over a cliff on one side. And there are lots of sharp curves. Central Planning This is a pretty good picture of […]