Money Today That Matters Tomorrow
A sign of America’s declining influence in controlling world financial markets was signaled by the fact that unprecedented Federal Reserve and Treasury actions over the last few months was not enough to calm financial markets that went into free fall last week. It wasn’t until a coordinated global rescue, orchestrated …
Last weeks 700 plus point drop in the Dow seems like a distant memory and a much bigger sequel looks to be in the works. The world has caught up to the US, and the domestic credit crisis has officially become a Global one. Who knew that struggling home owners …
Despite all the politicking this week, it looks like a bipartisan deal on the $700 billion bailout package (now titled the Emergency Economic Stabilization Act of 2008) has been reached. In the revised approach the government immediately provides $250 billion to start buying the MBS and CDO clogging up the …
Looks like the financial crisis is taking the much anticipated criminal turn with the FBI starting to seriously probe allegations of fraud by a number of Wall Street firms whose recent collapses sent markets into turmoil. The ones that received the most media coverage – Lehman Brothers, mortgage giants Fannie …
In my previous post I wrote about the long term fall out and adverse impacts from all these government bailouts. Tony Parker, a regular contributor to this site and an experienced investor, offers a different view as to why the bailouts could end up being a success and even realize …
To save our economy and the financial future of America, the US government is taking over our financial system by changing the rules and becoming the backstop for all the junk in the current financial system. While this may save our skins in the near term I think it is …
Well, the next big company on the chopping block this week was insurance company AIG. Unlike Merrill and Lehman, it was able to secure government assistance through a $85 billion emergency cash injection. The government and fed officials justified the loan by saying AIG was another “too big too fail” …
With all the doom and gloom headlines splashed across the financial media it is no wonder that everyone thinks we are headed for the next great depression with little hope of a recovery. Yet there are definitely some positive economic signs out there amid all the negative press – you …
The treasury along with the Federal Reserve and Federal Housing regulator (FHFA) announced a take over via conservatorship of the government sponsored entities of Freddie Mac and Fannie Mae. Current actions will definitely provide a cushion, but long term structural reform is needed to ensure this does not happen again …
[Update for June 2010 Beige Book] Economic activity continued to improve since the last report across all twelve Federal Reserve Districts, although many Districts described the pace of growth as “modest.” Consumer spending and tourism activity generally increased. Business spending also rose, on net, with employment and capital spending edging …
The financial media are again harbingers of more doom and gloom today, citing a Barron’s article and host of so called “experts” predicting that the financial crisis is not only far from over but could actually get much worse, bringing more big shocks to the US economy and stock markets. …
As oil prices drop the sense of relief is palpable for most consumers as they see sub $3 gas at he pump. Media headlines have also done an abrupt about turn, with headlines changing from “When will crude hit $200…” to “How fast can oil prices come down..”. The 20% …