There is a lot of debate as Bernanke heads for another round of testimony on Capital Hill: Was the Federal Reserve competent in managing the economy pre-mortgage meltdown and during the ongoing economic crisis? Should the Fed be reined in by Congress and lose its political independence? Should Bernanke be retained or replaced when his term expires in January 2010? What do you think? Is the Federal Reserve necessary? Must it retain its political independence? Ron Paul is leading the charge to … [Read more...]
Obama Reviewed, China, TARP Update, Bank of England, Wal-Mart Indicator
November 6, 2008 By Leave a Comment
Obama Election Reviewed Everyone is jumping in with there review and assessment of President-elect Obama. Here is what the financial services wonks are saying: Blown Mortgage is tracking Obama's Housing Promises Henry Blodget on the Yahoo! TechTicker is noting Obama already reseting expectations Wall Street Journal is ttracking Economists reactions to Obama Paul Kedrosky says Wall Street doesn't care China Crash Debated Economist Nouriel Roubini, noted economic doomsdayer often attributed with … [Read more...]
Fed Lowers Rate 0.5% to 1%, But is There More?
October 29, 2008 By Leave a Comment
Aaron Task presents a great Fed premonition. The Fed might not be done. In fact, it seems pretty clear they are locked into a recessionary outlook and few ideas for a short-term recovery. Recent policy actions, including today’s rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth. Nevertheless, downside … [Read more...]
Congress Gathering More Information on Mortgage Crisis
October 23, 2008 By Leave a Comment
Not sure all this testimony is going to make Congress any smarter, but it might keep them busy so they don't mess anything up worse: Former Federal Reserve Chairman Alan Greenspan's prepared statement FDIC Chairman Sheila Bair's prepared statement (Still amazes me that the most innovative, practical solutions are coming out of the FDIC) US Treasury Interim Secretary for Financial Stability Neel Kashkari's prepared statement … [Read more...]
Moral Hazards, Too Small to Fail, Mark-to-Market, Bernanke and Obama, P2P Lending
October 21, 2008 By Leave a Comment
When Lenders and Investors Objectives Aren't Aligned The Big Picture does a nice summary of how disconnects between lender and investor alignments can create moral hazard on the scale of mortgage implosion and financial market meltdown. Overstructuring risk mitigation combined with dangerously low interest rates makes credit feel like cash, debt like wealth. And, here we are... Seth Godin Reminds Us There is "Too Small to Fail" A great little post about the value of being small. It doesn't imply … [Read more...]
EU Reshaping Capitalism, without US? Rising Deficit, Rating Agencies, GM Chrysler Merger
October 20, 2008 By Leave a Comment
Markets Overnight Mixed. Mortgage rate likely to continue upward trend on Fannie, Freddie debt sell-offs. Markets ready for Lehman $360 billion swap unwind. EU Strong-Arming US to Reshape Capitalism? President Bush, under concerns of ceding leadership of global financial leadership to the EU, agreed to hosting a global summit to have substantive talks on reshaping global financial systems. Reports indicate that French President Sarkozy was applying significant pressure to President Bush to host such … [Read more...]
Ben Bernanke Talks to New York Economic Club
October 15, 2008 By Leave a Comment
It is mostly about FINANCIAL MARKETS: Bernanke Themes: Talk about unique nature of the financial market crisis Recent history recapped, as only an economic historian could More about TARP Federal Reserve's role in all this, relative to Treasury and FDIC Stabilization confidence talk Oops, a little talk about inflation again... Global coordination is still important Full Text of Bernanke's address to New York Economic Club. (word analysis: wordle.net) … [Read more...]
Morning Worldwide Central Bank Rate Cuts Trump News
October 8, 2008 By Leave a Comment
The rush of morning economic news is all about the extraordinary, coordinated rate cut by most of the world central banks. This coordinated 0.5 percent rate cut is a growing indication of a global economy that is comprised of increasingly coupled independent national economies. The world markets over the last several days have been an eerie forecasting tool for each new market opening. Here is some of the initial coverage as markets seem to react positively: Federal Reserve explains in statement … [Read more...]
Good Quick Analysis on UK Bank Bailout
October 8, 2008 By Leave a Comment
Mish's Global Economic Trend Analysis does a quick, down and dirty analysis of the UK banking bailout. Bailout plan sends European indices and US futures into a predictable downward trend. Mish predicts coordinated US Fed, Bank of England, European Central Bank rate action. … [Read more...]