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Investing in CDs: 2 “Safe Harbor” Investments Right Now
I walked into the University Place Branch of Bank of America on Saturday morning and was eyewitness to a shocking run on the bank. An unruly crowd had taken over the lobby of the branch. Every station in the normally deserted suburban banking center was full of customers.
Then I noticed a sign in the window. “Branch hours are extended today to accommodate all the customers wishing to open a High Yield 4% Certificate of Deposit.”
These customers weren’t demanding to withdraw their money; instead, they were rushing to make deposits. Bank of America was experiencing a reverse run as investors hurried…
1Aug2008 | Investment U | Comments Off | ContinuedFed Policymakers Look to Juggle Inflation, Stagnation
The U.S. Federal Reserve faces a tough challenge as it kicks off a two-day policymaking meeting tomorrow (Tuesday): It probably needs to start raising interest rates to prop up the U.S. dollar and offset a major escalation in inflationary pressures; but the economy needs low interest rates if it’s to maintain its anemic growth rate.
After one of the Fed’s most aggressive rate-cutting campaigns ever slashed short-term interest rates from 5.25% in mid-September to 2.0% now, experts now expect the central bank to reverse course. And this week’s two-day meeting of the policymaking Federal Open Market Committee (FOMC) represents the first…
23Jun2008 | Money Morning | Comments Off | Continued
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