Where Is The Fed When It is Needed?
It is time for Ben Bernanke to descend from Mount Olympus and join the Croesus of the administration, Henry Paulson, in the the trenches, or the tranches, depending on your perspective. Late word is…
Economy
All Economy Articles
Newest first · Page 404Bad ISM Data, Back To 2001 Post-Terror Levels
The Institute for Supply management, or ISM, has released some awful data for the manufacturing sector. It noted that while the overall economy grew for the 83rd consecutive month, the PMI indicates a…
Home Loans Joined By Car Loans And Credit Cards
While the market was busy looking at all of those "For Sale" signs around most neighborhoods, it forgot that people also put three or four expensive cars in their driveways and bought $5,000 home…
Consumer Confidence Data Not Representative of Today
The Conference Board has released some surprising data that was stronger than many would have guessed. The September confidence index came in at 59.8, up from 58.5 in August. The Present Situation index fell…
The Fed Needs To Cut Interest Rates To Zero
Up until recently, the Fed had a good reason not to cut interest rates. Inflation might catch hold of the economy and undercut the purchasing power of individuals and corporations alike. Inflation does not…
Small Business Gets Crushed In Credit Crisis
With the Congressional rejection of the Treasury bailout package lending from banks to small businesses has ground to a halt. According to Forbes,"The Discover Small Business Watch index of economic confidence slipped to 74.6,…
Fed Could Cut To Zero: Can The System Save Itself?
Now that the Congress has voted against the Treasury bailout and the Dow has dropped700 points, the important question is whether they system can save itself before the market moves toward 9,000. That would…
Fed Throws in $620 Billion In Swaps For Dollar Liquidity
It appears that a US-led bailout package may only be part of an effort to calm market fears. The Federal Reserve has announced a massive coordinated liquidity package to provide U.S. dollar liquidity. The…
Economist Nouriel Roubini Savages Bailout
Nouriel Roubini, economist and dark knight of the current crisis, today savaged the Paulson bailout in an article posted at his website. Among his points: "purchasing toxic/illiquid assets of the financial system is not…
The Treasury’s $700 Billion Bill Limited, The Markets Turn To The Fed
The attention of the markets is focused in the wrong direction. The Treasury will probably get its $700 billion bailout bill. A number of banks and other financial firms will have their balance sheets…
As Wachovia (WB) And Fortis Falter: The Bailout Will Have Been Too Little
Two European financial firms fell apart during the last 24 hours. The U.K. government said that mortgage bank Bradford & Bingley is being nationalized after investors and lenders lost confidence in the group. B&B’s…
Fed Loans $188 Billion A Day: Who Needs Bailout?
The Fed has been loaning banks and money managers an average of $188 billion a day over the last week. That is four times what the sum averaged a week earlier. Absent a bailout…
$700 Billion Bailout Done, And The World Is Saved
Congress is nearly done pulling together terms for a $700 billion bailout of the nation’s banks. It will keep a hand on the purse strings. At first, Treasury will get $250 billion. After that…
Economic Trifecta: Rain Predicted For Tomorrow
Anyone hoping for backdated economic data relief today may have to turn to their local weatherman for good news. There were dismal reports on new home sales, weekly jobless claims, and in durable goods. …
Hedge Funds Get Out Of The Hedge Fund Business
Hedge funds are concerned that the market as they know it may collapse. The Wall St. casino is closing. Risk can be taxed by total annihilation. The fun has gone out of becoming fabulous…