In 2014, I adapted the story There Was an Old Lady Who Swallowed a Fly, to describe the absurdity of the Fed’s actions in handling crises of their making.
The US Federal Government itself has cut taxes, forcing it to cover its shortfall by borrowing nearly $1 trillion in 2018. Who will buy bonds? At what price? Most likely, no one will buy…unless rates…
And come the next stock market correction — which could well be accompanied by a recession — the Fed will immediately swing around again. With no choice, it will team up with the White House…
If Kevin Warsh becomes Fed chair, it’s possible we’ll see a different response to the previous downturns.
Poor David Brooks… Yesterday, while waiting for one dose of claptrap, we were whacked by another. Fed chief Janet Yellen was scheduled to speak before the House Financial Services Committee on Capitol Hill at 10:00am. Waiting, we read a column by Mr Brooks in The New York Times: ‘Recently I took a friend with only a … Read More
The interest rate, even after a rate increase from the Fed, is still negative. So why are stocks still near an all-time high so late in the economic cycle?
The trouble is economies are not machines. There is no pump. And governments can’t prime a pump with water they don’t have.
Given the intent of fake news is ‘to mislead to gain financially or politically’, treating institutions with scepticism is essential to financial wellbeing.
Given the Fed’s appalling record in reading the economy correctly, the recent rate rise is a case of way too little, far too late.
One of the great Richard Russell’s most common phrases was ‘follow the money’. It’s the best advice you can get. Money isn’t biased.
In one of the most long-awaited interest rate hikes in history, overnight, the US Federal Reserve bumped up the Fed funds rate by 25 basis points.
Everyone has their opinion on Trump vs Clinton. But the Trump-Clinton election will have a major market impact also, which investors need to watch closely.
It’s been 8 years since the Fed introduced its ‘emergency’ zero interest rates… It will never return to a normal interest rate policy.
But the Fed — without so much as a by-your-leave or a thank-you note — took it upon itself to decide the fate of more than $8 trillion.