Before then, expect more infrastructure investment, further interest rate cuts and more official propaganda to fight deflation.
Add in the new ObamaCare investment taxes and the tax rate on interest income is close to 45%.
If central banks hold interest rates below this rate, credit and investment will rise too rapidly, and consumers will not save enough.
The greater the spread between the high-interest debt and the rate of return on investment, the greater the financial advantage for paying off the debt first.
Wen said the government is focused on stabilizing the economy and will use fiscal policy such as value-added taxes, acceleration of interest rate reform and wider involvement of private investment in the economy rather than government spending increases.
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Not all rising interest rate environments are the same, and certain investment options make sense in one scenario, but not in another.
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In a lower interest rate environment, there is a less investment income and is one of the factors weighing on the stock prices of insurance companies.
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Another reason demand for the long bond has been so voracious is that a lot of investment banks still use them to hedge their corporate-bond positions and interest-rate swaps (between fixed- and floating-rate obligations).
He discussed the firm's investment outlook for the year, noting a near-bottom in the European market and looming interest rate increases domestically.
Despite these headwinds, investment banks and Morgan Stanley in particular are much better off than 12 months ago as the interest rate environment is improving.
In July Popular partnered with AIG to offer Popular Choice Annuity, an investment vehicle that guarantees a first-year bonus rate of 5.15% and several interest-rate options thereafter.
The elderly, many of whom get by on a combination of Social Security and investment income, are suffering more than any other group from our current low-interest rate fiscal environment.
According to the Association of Corporate Treasurers, the vast majority of interest rate derivatives involve financial companies, such as banks, investment firms, insurers and hedge funds.
The precious yellow metal was boosted by the somewhat surprising interest rate cut by the European Central Bank and by more safe-haven investment demand as the EU debt crisis drags on.
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Risk aversion also adds to interest rate costs on short term bank loans, and with Russia considered a risk investment, loan costs inevitably rise.
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