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A Nation Named Desire
Classic film buffs will be familiar with the 1951 film – A Streetcar Named Desire – which starred Marlon Brando and Vivian Leigh. My favorite scene in the film involves Blanche DuBois (Vivian Leigh) and Stanley Kowalski (Marlon Brando).
Blanche DuBois is a fallen woman – her family fortune and estate are gone. In an absolutely classic line, Blanche says to Stanley Kowalski – “I have always depended on the kindness of strangers”.
I can think of no better analogy for the current condition of the United States than Blanche Dubois. Here stands the United States, her vast fortunes have been frittered…
12Jan2009 | Oxbury Research | 0 comments | ContinuedAxel Merk article on FED’s latest boondoggle
This is a well written must read article:
As the Fed buys assets in the market, the Fed drives prices higher; in case of debt securities, the yields will be driven lower. Superficially, this will be perceived as good news as the cost of borrowing is kept low for those who are affected by the purchase programs. For example, mortgage rates may remain low. Note, however, mortgage rates are low for those who qualify for a loan, not for everyone. While many are euphoric that the Fed keeps the cost of borrowing low, there are potentially severe unintended consequences. Specifically, through…
18Dec2008 | The Real Deal | 0 comments | ContinuedFed Slashes Interest Rates to a 0.0% to 0.25% Target Range … But Now What?
As expected, U.S. Federal Reserve policymakers slashed a benchmark interest rate yesterday (Tuesday). But they cut it by a bigger-than-expected amount, and did so in an unconventional manner.
Instead of establishing a new, specific primary interest rate, the central bank’s Federal Open Market Committee (FOMC) voted for a target range – 0.0% to 0.25% – a record low. Before yesterday’s cut, the Federal Funds target rate stood at 1.0%.
Instead of addressing the reason for its peculiar target range, the Federal Reserve opted for canned doomsday language that could have appeared verbatim in any of its previous rate cut announcements: It hasn’t…
17Dec2008 | Money Morning | 0 comments | ContinuedMore nonsense from the FED
FED wants to issue its own bonds
The Federal Reserve is considering issuing its own debt for the first time, a move that would give the central bank additional flexibility as it tries to stabilize rocky financial markets.
Government debt issuance is largely the province of the Treasury Department, and the Fed already can print as much money as it wants. But as the credit crisis drags on and the economy suffers from recession, Fed officials are looking broadly for new financial tools.
Some economists worry about the consequences of this approach. Fed officials could find it challenging to remove the cash from…
Why the Federal Reserve Can’t Save the Dollar
Since Ben Bernanke touted the dollar’s muscle in 2002, the greenback has fallen 40% against world currencies. This free report reveals what’s next for the greenback and four ways you can profit…
Unraveling the future direction of the dollar has consistently made fools of economists and other financial gurus.
But right now, if you closely examine the history and current economic tradewinds, the clouds begin to part.
Fact is, the value of the dollar isn’t just some nebulous economic macrotrend. It has a dramatic effect on your everyday life.
Story continues below…
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FED to issue credit cards to in debt consumers?
I’m joking of course but who knows as the ideas just get goofier.
The Federal Reserve took two new steps to unfreeze credit for homebuyers, consumers and small businesses, committing up to $800 billion.
The central bank will purchase as much as $600 billion in debt issued or backed by government-chartered housing-finance companies. It will also set up a program of $200 billion to support consumer and small-business loans, the Fed said in statements today in Washington.
“This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support…
Fed’s Out of Control!
Oct. 29 (Bloomberg) — The Federal Reserve cut its benchmark interest rate by half a percentage point to 1 percent, matching a half-century low, in an effort to avert the worst U.S. economic downturn in the postwar era.
We U.S. government and Federal Reserve continue to give us signs as to where they stand, where we’re going, and how were going to get there. Cutting the Fed Funds Rate to 1%, is just one more step towards zero, or next to zero interest rates.
Big Cut, Big Deal, of Big Woop?
This was not a big surprise, and the only question coming into…
30Oct2008 | Oxbury Research | Comments Off | ContinuedFederal Reserve, Bank of China Cut Interest Rates as Financial Crisis Deepens
Federal Reserve policymakers yesterday (Wednesday) reduced the benchmark Federal Funds rate to 1.0%, an aggressive half-percentage-point cut that central bank Chairman Ben S. Bernanke’s latest attempt to keep the widening financial crisis from tipping the world into a global recession.
“The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures,” the Fed said in a statement. “Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports.
“Moreover,” the statement added, “the intensification of financial market turmoil is likely…
30Oct2008 | Money Morning | Comments Off | ContinuedFed to Cut Rates at Next FOMC Meeting as U.S. Recession Appears Likely
The U.S. Federal Reserve is likely to cut rates tomorrow (Wednesday), possibly in conjunction with central bank counterparts in Europe, as fears of a global recession have intensified. However, the Fed has little room to maneuver as its benchmark Federal Funds rate is already at 2% and analysts remain skeptical that reducing it any further keep the United States from sliding into a prolonged recession.
The next meeting of the Federal Open Market Committee is scheduled for tomorrow Wednesday Oct. 29. There is no doubt that growth will be the central issue of the committee’s discussion, as fears of a global…
28Oct2008 | Money Morning | Comments Off | ContinuedAsian Session: Markets Confidence Grows
The Usd was slightly weaker in the Asian session, after a strong rally yesterday. EurUsd, in choppy trading, jumped between 1.3300 and 1.3360, while UsdJpy rose in early trading to 102.16, before slipping down to 101.43 (carry trades followed a similar pattern). The US equity markets continued to rally, with the S&P 500 up 4.7% and Asian regional stock indexes are following with Nikkei up 3.39%. VIX fell a whopping â€24.0% to 52.97 and gold fell to $793.82oz, as confidence continues to filter back into markets. Participants were broadly encouraged by the flood of official speak and corresponding markets reaction…
21Oct2008 | Advanced Currency Markets | 1 comment | Continued
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