let’s look at what the Federal Reserve is doing… As you’ll recall, the main man at the Fed, Ben Bernanke, has spent almost his entire life studying what went wrong…
November 21st, 2008 | Bill Bonner | 2 comments | ContinuedAll Posts Tagged With: "fed"
The Fed Cut Rates – But How Low Will They Go?
The big news yesterday: the Fed cut rates to 1%. Only 100 basis points left to go, in other words. Yes, dear reader, the Fed’s key lending rate will probably go all the way down to zero…
October 31st, 2008 | Bill Bonner | 2 comments | Continued
Fed Vice Donald Kohn Urges Emerging Markets to Drop the Dollar Peg
Fed Vice Chairman Donald Kohn said the world would be a lot better if emerging markets simply dropped their dollar pegs. This means they would stop importing U.S. inflation by matching the Fed rate cut for rate cut. In a speech earlier this week Kohn said, “In those countries where strong commodity demands are associated with rapid growth in aggregate demand that outstrips potential supply, actions to…
July 2nd, 2008 | Dan Denning | 7 comments | Continued
Fed’s Latest Rate Cut
The banks are holding onto their money because they figure they might need it. That’s what everyone does in the opening stages of a credit contraction. They’re afraid that if they lend it out…they will later discover that the borrower can’t pay it back.
March 21st, 2008 | Bill Bonner | 2 comments | Continued
The Supply Theory of Money is Simple Enough
Right now, a lot of money is disappearing. House prices are falling. Stocks all over the world are going down. Many financial assets - specialized derivative contracts and junk bonds - are getting hammered. The amounts of “implied” wealth lost are enormous. Worldwide stock market capitalization may be down about $5 trillion.
March 20th, 2008 | Bill Bonner | 1 comment | Continued
Currencies Will be Measured Against Gold to Determine Value in the Future
“[The] view that gold will see a substantial re-valuation is correct but it may take a detour back to $400 or lower – simply because in the deflation to come, which will be brought on by an escalation of the current liquidity crisis, gold will be sold off to pay for margin calls.
March 19th, 2008 | Bill Bonner | 0 comments | Continued