Nobody knows what the future holds. But there are a few things shaping up that suggest certain things will most likely happen. Here are some of the major ones.

Interest Rates: Low at the beginning of the year, then headed higher for a long time. If you have an adjustable rate mortgage and you're still paying it, it's the perfect time to get it refinanced, if you can qualify. Interest rates are definitely going up; it's just a matter of when. As long as the Fed is pumping money in (QE2 is targeted with $800 billion .... with the possibility of more behind it), rates will stay low, unless investors think inflation will get way out of hand. Then rates will go higher no matter what the Fed does as investors sell longer term bonds to beat the coming inflation. Initially, rising interest rates will be bullish as they are a precursor to a healthy economy. But that bull will morph and become a bear when rates start jumping as the Fed tries to get ahead of inflation. Tricky business. Investors will do well to have floating rate assets and fixed rate liabilities.

Continue reading Comfort Zone Investing: What Lies Ahead For 2011 ... Maybe

Comfort Zone Investing: What Lies Ahead For 2011 ... Maybe originally appeared on BloggingStocks on Sat, 11 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

• "This is not a rescue plan. It is the longest ransom note in history: Do what we tell you and you may, in time, get your country back," said Fintan O'Toole, a commentator and author who led a weekend protest by labor-union activists in central Dublin against the imminent bailout. He called the average interest rate being demanded "viciously extortionate."

Continue reading Chasing Value: Stocks and Irish Bailout -- ACN & IBM

Chasing Value: Stocks and Irish Bailout -- ACN & IBM originally appeared on BloggingStocks on Mon, 29 Nov 2010 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Bulls Start the Week Off (CBOE, BP, LCC, FDX, VZ, IBM, GENZ)

Closing Bell: Bulls Start the Week Off (CBOE, BP, LCC, FDX, VZ, IBM, GENZ) originally appeared on BloggingStocks on Mon, 26 Jul 2010 16:20:00 EST. Please see our terms for use of feeds.

For months European leaders have grappled with capping or deferring bank bonuses. Now a final deal has been approved by the European Parliament. It affects bank pay for the 27-nation bloc.

The final agreement would have bank employees defer 40% to 60% of their bonuses for at least three years. Half of the money would have to be paid in shares or other instruments tied to the bank's performance. In addition there is a clawback provision in which the bank can force an employee to give back all or part of the bonus if the employee took a bad risk.

Continue reading European Parliament Sets Deferment of Bank Bonuses

European Parliament Sets Deferment of Bank Bonuses originally appeared on BloggingStocks on Fri, 02 Jul 2010 13:00:00 EST. Please see our terms for use of feeds.

Without giving much detail, George Soros says "The euro is a patently flawed construct."

Let's elaborate on this point. The greatest flaw in the euro is that it's a currency without a country. Instead you have a group of 16 countries that have agreed to use the euro as legal tender. This means that 16 separate political systems have agreed in principle to follow the rules of engagement, to use a military term. Those rules state that each country must keep its debt level to 3% of GDP.

Continue reading Soros: Euro Is a 'Patently Flawed Construct'

Soros: Euro Is a 'Patently Flawed Construct' originally appeared on BloggingStocks on Fri, 02 Jul 2010 12:00:00 EST. Please see our terms for use of feeds.

Perhaps the European Union was doomed from the start and it just took a decade for the more productive member states to realize it.

If you went into a business with a bad partner is there any way for it to work? Inevitably there will be a split and that might be the case for the EU members and the battered euro.

Regardless of the end result shrewd investors should be on the lookout for stock bargains in large successful European companies undermined by the failure of the monetary system. The following three stocks are examples worth considering.

Continue reading EU Collapse Inevitable? No Matter: NVS, TEF and UL Are Buys

EU Collapse Inevitable? No Matter: NVS, TEF and UL Are Buys originally appeared on BloggingStocks on Wed, 26 May 2010 14:00:00 EST. Please see our terms for use of feeds.

European Union leaders have agreed to set up an emergency fund to stop the spread of the Greek crisis and shore up the euro. The amount of the fund was not disclosed, but leaders say it will be in place before Asia starts trading.

The catalyst for setting up the fund was the collapsing euro, which fell 4.3% last week. In addition, spreads on Greek, Spanish and Portuguese bonds widened last week, further indicating a lack of confidence in the EU. European banks have suffered big losses, especially those with exposure to Greece, Portugal and Spain.

Continue reading EU Emergency Fund to Prevent Spread of Greek Crisis

EU Emergency Fund to Prevent Spread of Greek Crisis originally appeared on BloggingStocks on Sun, 09 May 2010 10:10:00 EST. Please see our terms for use of feeds.

The Greek parliament passed a tough austerity aid program by a vote of 172 to 121. The vote opens the way for Greece to start drawing down the $140 billion dollars in bilateral loans from other eurozone states and the IMF.

Passage of aid package is Greece's chance to avert default and overhaul its public administration. It is deemed the biggest challenge since it emerged from military dictatorship in 1974.

Continue reading Greek Parliament Passes Austerity Aid Package

Greek Parliament Passes Austerity Aid Package originally appeared on BloggingStocks on Thu, 06 May 2010 18:30:00 EST. Please see our terms for use of feeds.

Continue reading ECB's Trichet Breaks Rules to Aid Greece, Prevent Contagion

ECB's Trichet Breaks Rules to Aid Greece, Prevent Contagion originally appeared on BloggingStocks on Tue, 04 May 2010 17:30:00 EST. Please see our terms for use of feeds.

You had it all figured out. The Greek bailout of $146 billion would stabilize Europe. Greek bond rates would fall. The euro would go up? Right? Wrong.

You wake up today and Europe is still burning. The euro is down. The dollar is up. Greek bond rates are down, but just slightly. Bond rates for Spain and Portugal are not falling.

Continue reading Is the Greek Bailout Working?

Is the Greek Bailout Working? originally appeared on BloggingStocks on Mon, 03 May 2010 12:00:00 EST. Please see our terms for use of feeds.

Financial guru, Nouriel Roubini foresees rising sovereign debt leading to defaults.

Roubini predicted the U.S. financial collapse at least a year before it happened. Now he is predicting sovereign defaults for European Union (EU) nations.

Continue reading Roubini: Rising Sovereign Debt Will Lead to Defaults

Roubini: Rising Sovereign Debt Will Lead to Defaults originally appeared on BloggingStocks on Sun, 02 May 2010 15:40:00 EST. Please see our terms for use of feeds.

When the financial meltdown struck in the United States in 2008, the contagion quickly spread throughout the world, including the European Union (EU). However, unlike the Federal Reserve, which has unilateral authority to act on behalf of the United States, the EU has no such authority.

The EU barely survived 2008 and 2009. Then this year, Greece had difficulty refinancing its sovereign debt. Again, unlike the United States, where the debt came from financial institutions, in Greece the debt is government debt.

Continue reading The European Banking Crisis: An Overview

The European Banking Crisis: An Overview originally appeared on BloggingStocks on Sun, 02 May 2010 09:40:00 EST. Please see our terms for use of feeds.

Thursday's events in Europe provided some encouragement, if not universal calm, regarding the Greek debt saga, including the promise that Europe and the International Monetary Fund will now move relatively swiftly to put together a suitable package that will assist the Mediterranean nation's transition to fiscal solvency.

But even if Europe again show signs of "snatching defeat from the jaws of victory," investors should not anticipate a sudden return to the barter system, globally.

Continue reading One 'Trump Card' Left Should EU, IMF Talks Disappoint Again

One 'Trump Card' Left Should EU, IMF Talks Disappoint Again originally appeared on BloggingStocks on Fri, 30 Apr 2010 12:30:00 EST. Please see our terms for use of feeds.

In a nutshell here's the problem. Greece needs to cover some 8.8 billion euro in bond redemptions that fall due in May, including an 8.5 billion euro, 10-year bond due May 19.

Greece had hoped to issue dollar denominated bonds to cover the shortfall. However when Pimco, the world's largest income manager, failed to express interest in the dollar bonds, Greece is being forced to find other financing.

Continue reading Greek Debt Problem Is Not Going Away

Greek Debt Problem Is Not Going Away originally appeared on BloggingStocks on Thu, 15 Apr 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading EU pledges $61 Billlion Support for Greece -- Germans Wise Up

EU pledges $61 Billlion Support for Greece -- Germans Wise Up originally appeared on BloggingStocks on Mon, 12 Apr 2010 08:00:00 EST. Please see our terms for use of feeds.

Germany, the European Union member with the largest and strongest economy, should get off their high horse and support Greece, not the International Monetary Fund (IMF) -- which to a large extent is the United States.

Greece is on the brink of disaster and for some reason the German government, following the sentiments of the man on the street, is willing to let the chips fall where they may. They do not seem to be able to grasp that the EU ship can only sail in one direction at a time and that half a ship will not sail at all.

Continue reading Germany Must Help Greece Without IMF

Germany Must Help Greece Without IMF originally appeared on BloggingStocks on Sat, 10 Apr 2010 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Greek Bonds Faltering -- Back to the EU Drawing Board

Greek Bonds Faltering -- Back to the EU Drawing Board originally appeared on BloggingStocks on Wed, 31 Mar 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Greek Debt Exposes European DisUnion

Greek Debt Exposes European DisUnion originally appeared on BloggingStocks on Tue, 23 Mar 2010 15:40:00 EST. Please see our terms for use of feeds.

Continue reading EU Is Not the United States of Europe

EU Is Not the United States of Europe originally appeared on BloggingStocks on Thu, 18 Mar 2010 12:00:00 EST. Please see our terms for use of feeds.

Jose Manuel Barroso, EU President, said he would ban speculative derivatives trades outright. CDS trading is a $40 trillion dollar global market which insures corporate and government debt.

Continue reading EU Considers Ban on Credit Default Swaps

EU Considers Ban on Credit Default Swaps originally appeared on BloggingStocks on Tue, 09 Mar 2010 14:20:00 EST. Please see our terms for use of feeds.