Signs of this pessimism come in the form of the company's short-interest and options activity.
Stocks with high short-interest have also been very much in play as they squeeze their way higher.
The stock has been a favorite target of some bears as the short-interest ratio was recently around 12.
Johnson cites short interest in May of almost 23 million shares (out of a 208.6 million share float) for a short-interest ratio of 14.
We are seeing evidence in the options market and in short-interest figures that suggests the big money players are returning to the stock market.
Monetary easing which includes downward movement of short-term interest rates must surely be more effective than monetary easing without downward movement of short-term interest rates.
Looking at the change in short-interest, and stock returns, from July 29 to August 15, the authors initially found that short interest did increase for most stocks in their sample, and that returns were negative for more than three-quarters of them.
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U.S. equity prices continue to rise as a benign short-term interest-rate policy holds sway.
Fewer than 700, 000 short-term interest-rate futures contracts traded on the Chicago Mercantile Exchange just six years ago.
That's why commodities prices have plunged across the board and why long-term interest rates of government debt virtually mirror short-term interest rates.
It drives short-term interest rates lower allowing banks to borrow low on the short-term end of the yield curve, and lend high on the long end.
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Following two days of sell-offs in stock markets across the globe--and a week ahead of its Federal Open Market Committee meeting (when the rate cut was expected)-- the Fed slashed short-term interest rates by three-quarters of a percentage point, its single most dramatic rate reduction since 1984.
Convergence, in essence, is a question of the costs to the British economy of having the same short-term interest rates as the euro-zone.
The Federal Reserve's Open Market Committee raised short-term interest rates today by one-quarter point, to 5.25%, but indicated it was nearing an end to its two-year campaign to throttle inflation.
With fiat currencies being printed, short-term interest rates near the zero-bound, and real interest rates providing negative expected returns, investors have been incentivized to chase higher returns on equities and invest in real assets.
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As noted above, even a quarter-percent increase in short-term interest rates would require a full-scale reversal of QE2.
That proportion has been climbing sharply in recent years, however, because short-term interest rates (and thus variable-rate mortgages, which follow them) have been so much lower than long-term rates (on which fixed-rate mortgages are based).
The first half of the interest rate forecast is very simple: short-term interest rates will remain in microscopic territory through 2013.
If short-term interest rates (primarily the target Fed-Funds rate) are close to zero the impact of more bank credit and more money creation through open market purchases remains.
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At present, short-term interest rates on the continent are around 3-4%, compared with over 7% in Britain.
Against that, a big lesson from the crisis is not to rely too much on short-term interest rates to rein in credit and home-loan booms.
Since 2004 the Fed has raised short-term interest rates in numerous baby steps, but--and this is key-- it has failed to mop up the excess money it created.
Will another conundrum keep US interest rates low even if the Federal Reserve raises short-term interest rates?
But the short-term borrowing that finances it would also bid up short-term interest rates.
After all, short-term interest rates and inflation are both rising, the current-account deficit is huge and widening, the dollar has fallen and the fiscal outlook has worsened.
Short-term interest rates remained low, reflecting plentiful liquidity, an inflation-sensitive shift from long-term debt to short-term, and the perception that the Fed will be dovish.
With short-term interest rates at just 0.001%, money is all-but free in Japan.
At stake are trades in eurodollar futures--bets on short-term interest rates affecting American dollar deposits outside the U.S.--accounting for 53% of the Merc's overall volume.
The Federal Reserve, trying to kick-start the economy, is keeping short-term interest rates at zero and is taking action to drive down long-term rates as well.
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But the Federal Reserve had already started raising short-term interest rates, flattening the yield curve, the difference between short and long rates. (Since banks borrow short and lend long, their margins are higher when the curve is steep.) When this began eating into lenders' profits, they reacted by pushing subprime rates back up.
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