The bigger story is that Greece hasn’t been abandoned by the rest of Europe…yet. Europe could probably leave Greece behind and preserve the integrity (such as it is) of the euro as a sound currency. But 50 years of harping on about social justice and economic harmony and humane capitalism is going to make it hard for policymakers to leave Greece to its own devices.
February 17th, 2010 | Dan Denning | 19 comments | ContinuedAll Posts Tagged With: "fed"
Is the American Government the Place to Park Your Money During Dangerous Times?
Whenever markets tank, the American dollar and its government’s bonds seem to surge. Daily Reckoning readers know we consider this to be absurd.
February 13th, 2010 | Nickolai Hubble | 1 comment | Continued
Inventory of Unsold Houses Will Probably Continue to Hold Prices Down
At $170,000, reports Floyd Norris in the NYT, the housing market corrected all the way back to 1997, adjusted for inflation. Twelve years’ worth of real pricing gains have been wiped out.
February 2nd, 2010 | Bill Bonner | 0 comments | Continued
If the Economy is Recovering Maybe the Feds Will Reduce their Stimulus
If the economy really is heating up, mightn’t it melt all that money and credit frozen by the depression?
February 2nd, 2010 | Bill Bonner | 0 comments | Continued
Credit Default Swap: Buying Insurance Against Default in Your Bonds
While Australians march down the path of a national house price obsession/mania, the world’s bond traders are firing warning shots. Bloomberg reports that, “Credit default swap (CDS) protection buying against sovereign debt default has spiked to five times the level of similar protection bought for corporate bonds, as the potential for a wave of sovereign debt defaults intensifies.”
January 28th, 2010 | Dan Denning | 6 comments | Continued
Investors Figure Jobs Picture Will Keep Fed from Raising Rates
The Fed will not raise rates anytime soon. But it takes more than low rates to create a durable boom on Wall Street.
January 14th, 2010 | Bill Bonner | 0 comments | Continued
Fed Made More Money than Goldman Sachs
How did it make so much money? The papers report that it cleverly bought up debt that no one wanted…Wall Street’s mistakes.
January 14th, 2010 | Bill Bonner | 0 comments | Continued
Supposed to Believe Investors Can Avoid Calamities of Past by Studying Previous Market Cycles
That is how some of us were able to foresee the dotcom blow-up in ’00…and later, the blow-up in the financial sector in ’08.
December 21st, 2009 | Bill Bonner | 2 comments | Continued
Have Things Turned the Corner for Funding Aussie Mortgage Growth?
It’s probably too early to say. The Australian Office of Financial Management continues to support the market for non-bank lenders. Non-bank lenders have to fund new loans via securtisation. Without the AOFM’s backing, you have to wonder how many first home buyers would have been able to find housing finance.
December 21st, 2009 | Dan Denning | 25 comments | Continued
We Trust Gold Because We Don’t Trust Central Bankers
But now we see that the central bankers are even more unreliable than we imagined. They are diligently trying to do the wrong thing, as usual.
December 17th, 2009 | Bill Bonner | 0 comments | Continued
Everyone is Getting Tough on Bankers
Good ol’ Paul Volcker is giving them hell. He told a group of bankers that the only innovation they came up with that actually added value was the automatic teller machine.
December 16th, 2009 | Bill Bonner | 2 comments | Continued
Debt Going Down Because Households are Defaulting
“Figures released this week by the Federal Reserve showed that Americans owed $10.8 trillion on home mortgages at the end of the third quarter, down 2.2 percent from a year earlier and the lowest level since mid-2007.
December 15th, 2009 | Bill Bonner | 3 comments | Continued
Volcker, the Last Central Banker in America to Have Any Real Integrity
He saw what needed to be done and he did it. He hiked up rates and brought consumer price inflation under control.
December 14th, 2009 | Bill Bonner | 4 comments | Continued
Congress Slams Ben Bernanke and Fed Reserve
Because the mainstream press wouldn’t want people thinking bad things about the Fed Reserve. They are here to save us. They are the cavalry riding over the hilltops to our rescue.
The myth of the purity of the Federal Reserve’s motives is jealously guarded by the mainstream press. Any dissenting voices are quickly dismissed as cranks and extremists.
December 8th, 2009 | Murray Dawes | 16 comments | Continued
Fed and the Reverse Repo
The only way to exit is by the door the Fed came in. It barged into the market buying up toxic assets and Treasury notes and bonds. In order to get back out the door, it has to get rid of all the debt it gobbled up.
December 3rd, 2009 | Bill Bonner | 0 comments | Continued
