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S&P Downgrades, The Process Begins
August 8, 2011
The Wall Street Journal – S&P: A Cut Below the Rest The first cut isn’t necessarily the deepest—at least not in the world of credit ratings. Standard & Poor’s decision to strip the U.S. of its triple-A rating is clearly a historic moment, with unquantifiable implications for investor confidence. But because Moody’s and Fitch still… Continue reading S&P Downgrades, The Process Begins
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A Behind The Scenes Look At Friday’s Downgrade
August 8, 2011
The Wall Street Journal – Obama and S&P Vie for Credibility The Obama administration and ratings firm Standard & Poor’s have embarked on a battle for credibility that could shape the ultimate impact of the U.S. debt downgrade—as well as their own reputations. Within minutes of Friday’s bombshell announcement, both sides launched public fusillades against… Continue reading A Behind The Scenes Look At Friday’s Downgrade
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Does The Federal Reserve Have Any Tricks Left Up Its Sleeve?
August 8, 2011
The Wall Street Journal – Fed Has Some Tricks Left, but None Are Magic Since the onset of the financial crisis in August 2007, Federal Reserve Chairman Ben Bernanke has been pulling rabbits out of his hat. He cut interest rates to near zero, printed $2.3 trillion to buy Treasury bonds and mortgage debt, and,… Continue reading Does The Federal Reserve Have Any Tricks Left Up Its Sleeve?
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Economists Chime In On The Downgrade
August 8, 2011
The Financial Times – Nouriel Roubini: Mission impossible: stop another recession Until last year policymakers could always produce a new rabbit from their hat to trigger asset reflation and economic recovery. Zero policy rates, QE1, QE2, credit easing, fiscal stimulus, ring-fencing, liquidity provision to the tune of trillions of dollars and bailing out banks and… Continue reading Economists Chime In On The Downgrade
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Gridlock In Washington
August 8, 2011
The Wall Street Journal – Markets Fear Gridlock Without Aid For Wall Street, Standard & Poor’s downgrade of the U.S. is one more sign that dysfunctional government is contributing to the market’s decline. After the 2010 election, many on Wall Street welcomed divided government, on the theory that the less Washington does, the better markets… Continue reading Gridlock In Washington
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Geithner To Stay As Treasury Secretary
August 8, 2011
The Wall Street Journal – Geithner Staying as Treasury Secretary Treasury Secretary Timothy Geithner, acting at the request of President Barack Obama, has decided to stay in his post through the 2012 election, removing a key piece of uncertainty over who will lead the administration’s economic team as it faces a new period of crisis.… Continue reading Geithner To Stay As Treasury Secretary
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The ECB Rides To The Rescue
August 8, 2011
<Click on chart for larger image> The Wall Street Journal – ECB Buys Italian, Spanish Bonds The European Central Bank bought Italian and Spanish government bonds for the first time Monday as it moved to contain the euro-zone sovereign-debt crisis. Traders with knowledge of the purchases said the ECB was buying Italian bonds in €50… Continue reading The ECB Rides To The Rescue
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At Least One Investor Is Holding Onto His Stocks
August 8, 2011
The Wall Street Journal – Burton Malkiel: Don’t Panic About the Stock Market Is it time to sell all your stocks, which are still well above their lows of 2009? I think not. No one can predict what the stock market will do in this and coming weeks. Stocks may continue their decline, but I… Continue reading At Least One Investor Is Holding Onto His Stocks
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Cartoons
August 8, 2011
None Today
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A Few Employment Charts
August 5, 2011
<Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image>
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What The Federal Reserve Needs To See For QE3
August 5, 2011
Comment Yesterday Jon Hilsenrath of the Wall Street Journal was on CNBC discussing how the Federal Reserve may respond to current market conditions. To view the interview click on the picture above. The Wall Street Journal – Former Top Fed Officials Signal Support For QE3 If Inflation Slows The U.S. economy faces a risk of… Continue reading What The Federal Reserve Needs To See For QE3