Seems like i caught the dip in SOR just in time, and the negative SOR rate is actually worked into the overall rate! It should have been SOR + 0.99% and SOR happens to be -0.01% on that day. I guess banks actually do make a profit from taking up a SOR loan themselves and they’re obligated to pass it on to consumers under the terms of the loan contract.
The Daily SOR chart looks rather different today. SOR rates are sub-zero! Initially i thought it was due to some error, but realized later that the negative figures are for real. This is probably mostly due to the plunging treasury yields, plus the Fed’s decision to keep record low rates till mid 2013 and low USD/SGD rates.
World’s End Close, Edinburgh
The events in the past week may be telling us that we could be one step closer to the end of the world. Ok, that’s a bit of an exaggeration, but these were significant events. US just lost its AAA rating for the first time. That means a loss of confidence in the US in their ability to repay their debt, and more so, a loss of confidence in the governance of the country. This has major repercussions on the financial system, especially the currency.
While the US debt default is still being debated, it seems quite certain that the US Credit Rating will be downgraded. What this means is higher interest rates. What will happens is, US treasuries will have to pay higher interest to attract buyers, since they’re deemed more risky than before. Such an increase in the yield of the US treasuries will ripple through other types of bonds and finally to mortgages also. Basically it means interest rates here (SOR and SIBOR) are primed to go up.
This comes about 2 years later than promised, but better late than never. The “spreadsheet” for calculating car depreciation is finally ready. Check it out! If you have any feedback, leave a comment in this posting, thanks!
QE3
Probably by now, the term Quantitative Easing (QE) is familiar to most people, having been widely publicized in the media. It is the “tool” employed by a central bank to revive the economy, by printing money.The aim is to get money flowing and thereby get the economy going. QE also keeps interest rates low as banks are flooded with money to be loaned out.
If you’ve come into contact with Europeans, you’d probably have a chuckle over what’s written on this plaque, found in a Swiss hotel, which is quite apt in capturing the stereotypical qualities of Europeans. Although, i would think the French are equally good lovers as the Italians and vice versa the Italians are equally good cooks as the French. Maybe there is a connection between being good as lovers and being good cooks.
Greece Parliament building, in front of which is Syntagma square where demonstrations happen
Greeks don’t come across as being lazy people. Quite the opposite, those whom i have met were diligent and enterprising. I wonder what has gotten them into the hot soup they are in now. In fact, i wonder if those people who demonstrated against the austerity measures, recently approved by their parliament in exchange for further bailout, know exactly how those measures, or failure to obtain the bailout, were going to affect them.
Plaque on display at Poschiavo train station showing the UNESCO World Heritage Site status for the Rhaetian Railway in the Albula/Bernina Landscape
Getting the UNESCO World Heritage Site status is a sure way of getting an endless stream of profit. The Swiss are quick to capitalize on this, getting their first 3 in 1983 and having a total of 10 as of 2009, which is amazing, given the small area of land that is Switzerland. One of them, which i visited, was the Rhaetian Railway in the Albula/Bernina Landscape.
