The big market moving news today is the Fed’s announcement of a new Term Securities Lending Facility (TSLF) (Bernanke just loves these acronyms doesn’t he?) in which the Fed will lend treasuries and accept agency and non agency AAA/Aaa private…
“The Fed is triaging the whole economic problem that we have, and right now it seems like economic growth is a priority.” – Carl Forcheski (subscription required), VP Foreign Exchange, Societe Generale Yesterday, Fed Vice Chairman Donald Kohn suggested further…
Inflation is poised to become a serious threat to the world’s economic well being – and not enough people are talking about it. While Wall Street whines and whines about how the Fed is behind the curve, they need to…
With inflation creeping up, we have to be particularly alert for rising inflation expectations. It is important that inflation expectations remain stable. If those expectations become unhinged, they could rapidly fuel inflation. Moreover, as we learned from the experience of…
….. macroeconomic policy should not be based on a panicky attempt to avoid a 2008 recession at all costs…. The US should face its need for adjustment with courage and reason, not fear. It should stop behaving as the whiner…
The rally that began at 1pm EST last Wednesday ended today at 3pm EST as investors sold the surge on the 50 point cut by the Fed (S&P 1 Day Chart, S&P 10 Day Chart). It was nice while it…
“Expectations of further Fed cuts continue to support the precious metal, and traders feel bullion can break the $950 mark in coming weeks. Some even suggest that gold may jump as high as $1000 an ounce in a couple of…
It’s been another volatile day so far. Markets opened sharply lower, due to selling overseas and weak same store sales numbers from McDonald’s (MCD). US same store sales were up only 3.3% in the 4th quarter and flat in December (MCD…
Markets sold off badly overseas on Monday as investors feared the effects of a US recession on the rest of the world (Overseas Selloff Graphic). As a consequence, US futures markets were in panic mode yesterday ahead of today’s opening. With…
“…. in light of recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary. The Committee will, of course, be carefully evaluating incoming information bearing on the economic outlook. Based on that…