One step forward, three steps back. That’s what the trading action looks like in the markets now. For every big one day advance of 1% to 5% or more, you’re going to get a corresponding sell off equal or greater to that. It’s not normal to see these kinds of one-day moves. But these aren’t normal times. We’re back on the edge of a credit abyss. Just when investors were convinced that the Gordon Brownification of the world’s banking sector had put the credit crisis behind us, we have more bad news.
October 16th, 2008 | Dan Denning | 3 comments | ContinuedAll Posts Tagged With: "Federal Reserve System"
Fed Now the Middle Man in Interbank Lending Market
If this were a real war between inflation and deflation, the armies of deflation would have just cut off the head of one of inflation’s leading generals and put it on a pike as they stormed across the global marketplace, setting fire to asset values and mowing day stock markets. So the $700 billion TARP plan, at least so far, is a total failure in reflating confidence in the stock markets. Let’s hope it fares better in repairing bank balance sheets. But if it doesn’t, what’s Plan B? More on that in moment.
October 7th, 2008 | Dan Denning | 1 comment | Continued
Bailout Bill Leaves Markets in Deep Freeze
Global share markets don’t look very convinced the U.S. Senate’s passage of a bailout bill will purge the financial sector of the bad debts which are killing it. Perhaps it’s because the Senate bill was such a joke. The plan, or FrankenTARP as we are now calling it includes restriction on judicial review, a suspension of the normal rules for drafting and debating legislation in front of Congress, and allows for the President and Treasury Secretary to come back as many times as they’d like for more. money.
October 3rd, 2008 | Dan Denning | 2 comments | Continued
Bailout Deal Will Expand China’s Influence in U.S. Economy
The new capital of America’s financial system is not Washington, D.C. It’s Beijing. The financial press will report that the big story this weekend is that the Republicans and Democrats finally agreed on the details of a bailout deal to “save” the economy from imminent collapse. But that is not the story at all. In fact, it’s pretty nauseating to see the self- congratulatory smiles on the Senators and Congressmen and women who are on board with the Paulson plan. What have these morons wrought?
September 29th, 2008 | Dan Denning | 12 comments | Continued