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 […]

The Collection Agency – Weekly Report - March 3, 2008 16:11

Welcome to the Weekly Report. Buzz words abound in the mainstream and financial media and the habit is spreading to the bloggers and writers some of whom have an agenda showing. We look at what the Federal Reserve is really doing and why it will not work. A rash of so called “new” alphabet debt […]

Dollar drops like a rock - February 29, 2008 15:06

The dollar has plunged drastically over the last couple days, falling to all-time and multi-year lows against several major currencies.  While dollar sentiment has been low for some time, its most recent decline has been largely attributed to growing concern over potential stagflation.  Stagflation is a combination of flat economic growth and rising consumer prices.

Did Mr Bernanke’s Speech To Congress Mislead The People? - February 28, 2008 12:34

Mr Bernanke went to congress to deliver the semi annual Monetary Policy Report today. For those of us who have the stomach to read the text of his speech it can offer some deeper insight into how the Fed is thinking.

Stagflation concerns face US economy - February 27, 2008 14:15

The US economy is facing what financial experts call ‘stagflation.’ Stagflation is a combination in which consumer prices rise faster than is desired, while the economy slows at the same time. Stagflation is a double edged sword and it is definitely not desirable.

Get Ready – Here Come the Gold Stocks! - February 26, 2008 13:58

You’d have to be a monk living in isolated penury to miss the fact that gold is on a tear. Specifically, it has risen from $277.75 on January 4, 2002 to $950 last week, a gain of 242% in just over 6 years. Over the same period, the trembling S&P 500 is up an anemic […]

A Junk Bond Collapse Is Bullish For Stocks? Someone Better Tell Citigroup - February 26, 2008 10:47

Yes, you guessed it. Someone out there in Fantasy Finance Land is of the opinion that a collapse in junk bonds is a signal to be bullish on stocks. I am really struggling not to start ranting about the stupidity contained in such a thought.

US economy still sluggish - February 22, 2008 10:00

Following a reading of the Federal Reserve Central Board meeting minutes from January, analysts are pricing a likely rate cut as high as .5 basis points into the financial markets.  Discussion during the meeting suggests the Fed intends to remain aggressive in its moves to combat the struggling economy.