Each new government initiative – the latest being financial reform – that doesn’t decisively address the debt, but rather tightens the government’s around private enterprise, only serves to delay or prevent economic revival. And so each new day will bring more distress and bankruptcy to homeowners, businesses, and banks.
July 29th, 2010 | David Galland | 8 comments | ContinuedAll Posts Tagged With: "fed"
Germans Obsessed With Getting Their Fiscal House in Order
Anecdotal evidence from the German population suggests that whinging is on the agenda, without any obvious plan of action. “Germany works, while the rest of Europe parties” is the phrase on everyone’s lips.
May 22nd, 2010 | Nickolai Hubble | 0 comments | Continued
Greenspan and His Fed Were Wrong 90% of the Time
Mr. Greenspan defended his legacy. He was right 70% of the time, he said. The other 30% of the time he was wrong.
April 12th, 2010 | Bill Bonner | 1 comment | Continued
Big Four Aussie Banks Used Financial Crisis to Expand Control Over Mortgage Market
Does this leave the Big Four exposed to just one incredibly important asset class? Well at least two of the Big Four might lose some sleep over it at night. Commonwealth Bank has 65% of its loan book tied up in household mortgages, according to Eric Johnston in the Age.
April 12th, 2010 | Dan Denning | 85 comments | Continued
Federal Reserve Literally Killing Our Money
As much as I scream in Loud Mogambo Outrage (LMO) about the sheer amount of money that is being created that will create horrendous inflation in prices, using whatever data that I can easily get my hands on…
March 31st, 2010 | Mogambo Guru | 2 comments | Continued
Australia’s Banks Have to Compete in That Global Capital Market
“The quality of banks’ housing loan portfolios has proven to be very high by international standards, notwithstanding a modest increase in loan arrears. There has been a more significant deterioration in the quality of banks’ business loan portfolios, particularly for commercial property, and this remains an area to watch closely in the period ahead. Nonetheless, recent indications are that banks’ overall loan losses may have peaked…
March 26th, 2010 | Dan Denning | 7 comments | Continued
A Loss is Not a Loss if You Turn Debt into Equity
The yoke of debt may have felt light until now. But the lash of higher rates on the back will definitely be noticeable. Let’s just hope it doesn’t break the financial back of a whole generation of home buyers, although this is what we fear “bringing forward demand” will do.
March 24th, 2010 | Dan Denning | 15 comments | Continued
Inflation and Deflation at the Same Time
Hmmm… Inflation? Deflation? Analysts and pundits are trying to look into the future. What’s coming?
March 23rd, 2010 | Bill Bonner | 1 comment | Continued
The Investor in Indian Bonds has Ben Bernanke on His Side
Stocks rose again yesterday – largely on the good feelings inspired by Ben Bernanke. The US Fed chief let it be known that if the economy slips back into a slump it won’t be his fault.
March 22nd, 2010 | Bill Bonner | 0 comments | Continued
Defiance at the Fed
Any real recovery would be accompanied by interest rate increases from the Federal Reserve. Instead, the Fed stuck to its guns and butter interest rate. Dan Denning is another step closer to his free beer bet coming off.
March 20th, 2010 | Nickolai Hubble | 0 comments | Continued
In a Properly Functioning Economy Prices Go Up and Down
Here at The Daily Reckoning, when we go into a liquor store and find lower prices, we are delighted. We stock up. But we are clearly out of step with mainstream economists.
March 1st, 2010 | Bill Bonner | 2 comments | Continued
How Do You Enjoy a Depression?
How do you enjoy a depression? Well, the first thing is to make sure you’re not in its way…
March 1st, 2010 | Bill Bonner | 3 comments | Continued
A Depression in Full Technicolor
As we’ve opined many times in the past, a depression is not just a time when people stand in line to get bowls of soup or sell apples on street corners. It’s a time of adjustment…when mistakes of the previous boom are corrected…
February 23rd, 2010 | Bill Bonner | 67 comments | Continued
Hike in Fed Funds Rate Would Cause Damage to Collateral on Books of America’s Banks
It’s not the big money-centre banks in Wall Street you have to worry about. It’s the smaller regional and community banks. The Federal Deposit Insurance Corporation shut four more of them over the weekend. That’s 20 for this year, which is a lot less than the 140 last year. But if you wanted to see a spike in U.S. bank failures, you’d definitely raise interest rates.
February 22nd, 2010 | Dan Denning | 41 comments | Continued
The U.S. Dollar is Not the Euro
As the main rival (amongst paper currencies) to the dollar as a global reserve currency, the euro’s coming collapse has to, almost by definition, equal dollar strength. There just aren’t that many more liquid alternatives for large institutions and central banks.
February 19th, 2010 | Dan Denning | 4 comments | Continued
