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America “should declare bankruptcy”
CNBC:
When the Federal Reserve policymakers decide on interest rates Tuesday, investors will probably look one step beyond their decision, to gauge how much money will the Fed be willing to print once it is out of rate ammunition.
Rates won’t likely hit zero Tuesday, but this could be unavoidable in the near future, according to strategists and market experts.
"Rates will fall close to zero. Everywhere," Hugh Hendry, chief investment officer and partner, Eclectica, told CNBC.com. "The central banks will be forced to take them to zero because of the widespread disruption in society, for job losses."
And nations may have to let…
17Dec2008 | The Real Deal | 0 comments | ContinuedWorrisome Stagflation Becomes More Real All the Time
U.S. Federal Reserve Chairman Ben S. Bernanke didn’t use the “S” word – stagflation – but he might as well have.
On Friday, the U.S. central bank chief said that the financial crisis that has hammered the U.S. market is combining with rising inflation to eviscerate American economy. Together, the two forces are making it extremely difficult for the Fed to restore economic stability in the U.S. market.
Bernanke apparently welcomed the recent drop-off in the prices of oil and other key commodities – and says that inflationary pressures will moderate over the next year and a half, but also cautioned that the…
25Aug2008 | Money Morning | Comments Off | ContinuedThat Ticking Noise You Hear in Your Wallet is a Credit-Card Time Bomb
For those holding out hope that the American economy can miraculously avoid a long and deep recession, consumer credit is often viewed as the wonder drug that can cure all manner of economic ills. As such, last week’s report showing that consumer credit grew by $15 billion was widely heralded as proof of America’s economic strength and resilience.
The reality is very different, however: We’re already suffering from the after-effects of too much debt, meaning that our salvation cannot be found in more of the same.
Death by a Thousand Charge Slips
Credit card debt, which now stands at whopping $957 billion nationally…
15May2008 | Money Morning | Comments Off | Continued
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