Fed makes markets move with .75 point rate cut - March 19, 2008 13:55

In spite of the fact that a deep rate cut was widely expected to come out of today’s (March 18) Fed meeting, financial markets of all kinds reacted with much exuberance to the .75 point rate cut announcement that came in the early afternoon.  Stocks, which had been up already with anticipation (Dow well over […]

Is The Next Victim In The United Kingdom? - March 18, 2008 15:23

Wow, what a day Monday was, fears of a meltdown, talk of intervention, the dollar getting pounded, Bear Stearns trading above the offer price, whatever next?

Pre-emptive warning of a major banking crisis - March 17, 2008 13:55

When asked what represented the greatest challenge for a statesman, British Prime Minister Harold Macmillan responded in his typically languid fashion, “Events, my dear boy, events.”

Dollar plummets under weight of oil, gold, and currencies - March 17, 2008 13:52

The dollar plummeted significantly again this week under renewed economic concerns.  Many forecasters have projected that the US recession is no longer pending, but might be in progress.  Financial markets will be watching closely after the end of the first quarter to see if growth has stalled.

Corporate Bonds, Stocks and the Federal Reserve - March 11, 2008 9:52

We start off with an update to last week’s piece on corporate bonds (CB). It looks like I am not the only writer who has spotted the possible turmoil in store for CB’s. This is a small snippet from an article on Bloomberg which highlights the problem at a corporate level:

Housing market hope dashed - March 7, 2008 10:02

Home owners, investors, and others hopeful of a US housing market turnaround in the near future, got plenty of negative news Thursday (March 6) to dash their hopes.  Various records of the negative variety continue to fall on many home fronts.  Foreclosures finished the worst year on record with a record number of foreclosed properties […]

They Said It Wouldn’t “Spread” - March 6, 2008 13:16

Not that long ago we had the soothing words of “containment” and “no spill-over” thrown at us daily, keeping the financial masses calm as the turmoil in the sub-prime derivative markets grew. We know how false those words were as we look around today and survey the damage across the whole credit system.

Bernanke warns mortgage trouble could persist - March 5, 2008 10:01

Federal Reserve Chairman Ben Bernanke warned Americans on Tuesday (March 4th) that the current mortgage crisis would likely continue for a while.  This was obviously not welcome news to home owners, businesses, or financial markets.  Americans are already overwhelmed with negative financial news given fears of an existing or pending recession and the impact of […]

An Occasional Letter From The Collection Agency - March 4, 2008 10:18

It’s been sometime since the last Occasional Letter and with more than a few questions about the macro-economic situation being posed by Livechart members recently, I thought it would be a good time for an update.A recap of the scenario:bubble, easy money, inflation in fiat money supply, inflation in commodities and hard assets, inflation, fear […]