Why are interest rates so low, part 4: Term premiums | Ben Bernancke – Brookings Institution

This is an outstanding article by Ben Bernancke, former chairman of the Fed. It’s an important read in my view. Check it out!

via Why are interest rates so low, part 4: Term premiums | Brookings Institution.

The context is that the Financial Services industry is beginning to spook investors in fixed income securities and fixed income funds that an interest rate rise would be seriously bad news [when interest rates go up, fixed interest securities fall in value, especially long-dated securities). Meanwhile, fixed interest funds are still surprisingly attractive.

I think Ben Bernancke’s article highlights why smart investors are happy to stay with fixed income securities for the time being.

Thoughts?

Opinion – Given time Ed Miliband’s newfound self-belief could turn into charisma | John Crace | Politics | The Guardian

Surely this headline could only come from the Guardian? The article is worth a read. Check it out!

via Given time Ed Miliband’s newfound self-belief could turn into charisma | John Crace | Politics | The Guardian.

Makeovers by PR professionals surely will not deceive the UK public? Perhaps, people need reminding that ‘Red Ed’ teamed up with the big-unions and stabbed his own brother in the back to become leader of the UK’s Labour Party. This is the same national leader who forgot his lines related to the economy at a Labour Party Conference.

In my mind, Red Ed is politically toxic and a coalition of the Labour Party with the Scottish National Party would be seriously bad for the UK. I predict a downgrade in the national credit rating, a fall in the Pound and a big sell off of UK shares.

Perhaps, the Telegraph should run a story entitled ‘Red Ed rides again?’

Would you trust ‘Red Ed?’

Thoughts?