Federal Reserve Archive

Fed’s Lacker Says More Stimulus Risks Inflation

       The Federal Reserve’s decision to buy more bonds and implement other such easing measures creates the possibility of raising inflation, Richmond Fed President Jeffrey Lacker said Tuesday. The central bank said last week it would begin buying an additional $40 billion of mortgage-backed securities a month on an open-ended

Is China Ever Going To Stop Buying Treasuries

Recently I received an interesting newsletter describing why China is where you should be investing…I have edited the newsletter to focus on the main story… America’s biggest benefactor—the Chinese government—is about to pull the plug on the U.S. markets. The giant sucking sound you hear will be what’s left of your wealth

Three Musketeers – Bush, Bernanke and Paulson

Now, let us see the facts today:$ 512 Billions – Already written off by banks and brokers$ 59 Billions – Given to Bear Stearns and JP Morgan combine$ 200 Billions – given recently to Fannie Mae and Freddie Mac$ 85 Billions – given to AIG as capital$ 2,400 Billions – Needed by

UPS Cuts Outlook on Lower Volume and Fuel Costs

CNBC has a story about UPS cutting their outlook : UPS Cuts Outlook on Lower Volume and Fuel Costs United Parcel Service, the world’s largest shipping carrier, cut its first-quarter profit guidance Tuesday, citing lower volume and higher fuel costs. The company said it now expects earnings per share of 86 cents

US Home Prices In 2009

Bloomberg has a story about Greenspan’s take on US home prices: Greenspan Says U.S. Home Prices May Stabilize in 2009 Former Federal Reserve Chairman Alan Greenspan said the drop in U.S. home prices will probably end well before early next year as the number of houses on the market diminishes, aiding an

Interesting Stories Of The Day

Taxpayers May Be Liable for Billions From Bear, Mortgage Rescue Even as the Bush administration insists it won’t risk public funds in a bailout, American taxpayers may already be liable for billions of dollars stemming from Federal Reserve and Treasury efforts to quell a financial crisis. History suggests the Fed may not

Weekly Economic Calender

Series of events listed for this week: The Standard & Poor’s/Case-Shiller national home price index for January will be released Tuesday. On the housing front, the latest quarter’s results from Lennar Corp. (LEN) and KB Home (KBH) are due Thursday and Friday, respectively. The Conference Board’s Consumer Confidence Index for March will

A Week Of Madness At Wall Street

JPMorgan Chase & Co. quadrupled its offer for Bear Stearns Cos. to $10 a share today and struck a deal to buy 40% of the company without a shareholder vote, making it unlikely opponents can block the takeover. A week ago on Monday, JPMorgan Chase agreed to buy Bear Sterns at a

Consumer Spending Up, But Is It Good Or Bad

Consumer spending is closely watched because it accounts for two-thirds of total economic activity. Consumers put aside worries about slumping home sales and soaring gasoline prices and headed to the malls in November, pushing spending up by the largest amount in 3 1/2 years. Consumer spending surged by 1.1% last month, nearly

The Power of Rate-Cut

Swiss banking giant UBS warned today that it will write down the value of its subprime mortgage holdings by a further $10 billion, leading to a loss in the fourth quarter and potentially wiping out all its profits for the year. Bank of America Corp. said today that it’s shutting a $12