“Inflation is accelerating in the BRIC economies and central banks are responding with tighter monetary policy. While higher interest rates may be the standard remedy to combat inflation, tight money policies usually wind up dealing a death-blow to stock market investors.” — Mike Burnick
by Mike Burnick
Baltimore – (TFN): Don’t look [...]
“It’s not excluded that, after having carefully examined the situation, that we could decide to move our rates for a small amount at our next meeting. I didn’t say it’s certain. I said it’s possible.” — European Central Bank President Jean-Claude Trichet
by Stephanie Grimmett
Baltimore – (TFN): You can blame a frenchman [...]
Tags: bernanke, central bank, dollar, ecb, eu, euro, european union, Fed, inflation, interest rates, jean-claude trichet, oil prices, paulson, treasury
“Can a currency really plummet in value, even while its central bank is raising interest rates? Yes, it can. In fact, it’s happening in South Africa right now.” — Sean Hyman
by Sean Hyman
Baltimore – (TFN): In the world of currency exchange, a currency tends to drop in value when its [...]
“Banks all over the world have spent much of the few years bingeing on cheap money, but Iceland’s taken the whole thing to quite an extreme. Its big players – the likes of Landsbanki and Kaupthing – have been on an extraordinary borrowing spree, sucking in vast quantities of cash to fund lending and acquisitions [...]
“So why is this move by Japan’s central bank important? That’s easy. We’ve been hearing for years how the Japanese economy is poised for a recovery. And each New Year is supposed to be ‘the’ year - yet it just somehow never seems to happen - at least according to folks who [...]
“If the central bank does pare short-term interest rates, it’s likely to be the last such move in awhile; the Fed will take a break and give its rate cuts a chance to work their way through the U.S. economic system.” — William Patalon
by William Patalon
Baltimore – (TFN): U.S. Federal [...]
“(The Fed’s) message has been, more or less, that money grows on trees, which is why Ben Bernanke’s moniker, ‘Helicopter’ Ben, is catching on with the press. Gold bugs could not be more thrilled. Just recently, I wrote that we are seeing the best of all worlds for gold [...]
"The feds try to artificially increase the supply of cash and credit… so as to avoid correcting mistakes." — Bill Bonner.
Blogger's Note: Our friend Bill Bonner of The Daily Reckoning published a good article on the current credit crisis. Bill has some interesting things to say about the U.S. market situation and the [...]
Tags: Bank of england, Bill Bonner, central bank, credit crunch, credit meltdown, daily reckoning, dow, federal reserve, interest rates, market downturn, pumping money, subprime default, subprime meltdown, the fed