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IndyMac (IDMC) First of Many Banks to Fail

“Don’t let the name ‘regional banks’ fool you. We’re talking about some of the biggest banks in the US. The reality is that regardless of how much money the U.S. government pumps into Freddie and Fannie, the U.S. financial system is in big trouble.” — John Stepek Blogger’s note: The Fed may have decided that Fannie [...]

The Fed’s Secret Weapon

“The latest genius might be just what the U.S. Federal Reserve needs to restore order around here: She might even be able to bring credibility back to the global financial markets.” — Keith Fitz-Gerald by Keith Fitz-Gerald Baltimore – (TFN): Every market cycle has its genius. Even a market cycle as wild and [...]

Dollar Bear: The Fed Can’t Fight Inflation

“In announcing ‘no change’ in rates yesterday, the Fed pretends that its policy is perfectly calibrated to deal with the current economy. In reality however, the Fed is pinned down by a cross fire of inflation and recession.” — John Browne by John Browne Baltimore – (TFN): Cheerleaders will face [...]

Can the Fed Stop Inflation?

“Soaring inflation means the credibility of the legal tender in your wallet is being called into question. In other words, does your dollar really have any value?” — Jack Crooks by Jack Crooks Baltimore – (TFN): All over the world, everyone from market analysts to your average grocery shopper has been buzzing about inflation lately. [...]

Dollar Bear: More Fed Means Less Money for You

“What few economic leaders have acknowledged is that the Federal Reserve itself is responsible for the real estate and credit bubbles, which are the source of our current troubles. By keeping interest rates too low for too long, the Fed ignited a speculative fever and engendered a [...]

New York Is in Trouble & So Is the Rest of the U.S.

“Whether the rest of the country likes it or not, both Wall Street and Washington place enormous confidence in the predictive powers of the Federal Reserve Bank of New York’s Empire State Manufacturing Survey.” — Adam Lass by Adam Lass Baltimore — (TFN): As goes New York, so goes the nation. That motto may seem like typical NYC [...]

Oil Is the New Gold Standard

“The Fed can no longer cheat with the money supply and get away with it. There is a new gold standard and it’s called ‘oil.’” — Byron King, Whiskey and Gunpowder by Byron King Baltimore – (TFN): Oil has become the “anti-dollar” of modern times. Oil is now serving as the [...]

Election 08: Who is better for investors?

“Whomever wins the Democratic nomination is pretty likely to be our next President. So, as investors - whether Democrat or Republican - which of the two candidates should we be rooting for?” — Martin Hutchinson by Martin Hutchinson Baltimore — (TFN): With contests in both Indiana and North Carolina, today (Tuesday) probably marks the last of [...]

Fed Rate Cut: Bernanke’s silver bullets

“At this point, Ben Bernanke has to feel like Barney Fife. Remember how on the Andy Griffith Show, Andy only gave Barney one bullet and he had to keep it in his pocket? Mr. Bernanke has to feel like he is running out of bullets and needs [...]

Fed Rate Cut: Feed the world or save the housing market

“Interest rate policy normally only affects the world economy at the margin, but it has now been so expansionary for so long that the Fed’s interest-rate strategy has turned into a moral dilemma of sorts. In short, the central bank’s monetary policy will likely determine whether millions of U.S. homeowners lose their homes or millions [...]

U.S. Federal Reserve: Another Fed rate cut this week?

“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 [...]

Dollar Bear: Hyperinflation meets the next Great Depression

“Although Bernanke may have spent much time studying the Great Depression, his understanding of it is anything but sound. That epic “slowdown” resulted from a series of policy mistakes, first by the Federal Reserve and then by the Federal Government. Bernanke believes these mistakes were simply not large enough.” — Peter [...]

U.S. Market Crisis: Paulson saves the day

"Senators, representatives and presidential candidates have been busy calling for more government oversight of the financial industry. And maybe Congress will settle on Paulson’s idea as its "savior" in the current camera-mugging opportunity. It could actually save money and provide a simpler system for companies trying to follow the ornate business laws already in place [...]

U.S. Markets: Three ways to profit from the falling dollar

"To the U.S. economy and to investors in U.S. companies, the dollars current spiral is much closer to a strand of DNA - the spiral of life." — Martin Hutchinson by Martin Hutchinson Baltimore – (TFN): When some commentators see how steadily the U.S. dollar has declined against a basket of key [...]

Stock Market Crisis: How long can government interventions delay the inevitable?

by Andrew Snyder Baltimore — (TFN): I must be some kind of nerd or something. Every day, about an hour before my alarm is set to jolt me awake, I am out of bed staring at the TV screen through one eye and reading the Journal through the other.  Growing up, I used [...]

Market Crisis: Has the plunge been postponed?

Baltimore — (TFN): The Federal Reserve is doing its best to save American banks and the nation’s equities markets from implosion. How long can their artificial life support keep the nation hanging on? Eventually, the pain of a major recession will be felt. Many analysts predict it could be the worst economic catastrophe since the [...]

Inflation Protection: The worst is yet to come

"Credit market liquidity is a major issue, no doubt, but soaring oil prices, a weakening dollar, falling employment, and rip-roaring inflation are the wolves tearing at this economy’s jugular. " – Andrew Snyder  By Andrew Snyder Baltimore (TFN) — Do not be fooled into believing yesterday’s super-rally is a sign of good things to come.  Tragically, the Fed’s [...]

Dollar Bear: The “What-me-worry” Fed

by Peter Schiff  Baltimore — (TFN): Having neither the will nor the means to confront our major economic challenges, Washington is instead hanging its hopes on words alone. This week, despite the clearest signs yet that the dollar is in critical condition, President Bush and Treasury Secretary Paulson tried to provide reassurance by once again invoking [...]

Global Credit Crunch: Why the Fed is making it worse

"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 [...]