Bloomberg.com – Bernanke May Sustain Stimulus to Avoid ‘Cold Turkey’ End to Aid Federal Reserve Chairman Ben S. Bernanke may keep reinvesting maturing debt into Treasuries to maintain record stimulus even after making good on a pledge to complete $600 billion in bond purchases by the end of June. The Fed chief’s top two lieutenants… Continue reading Are We One Step Closer To QE3?
The Financial Times – Perils and pain of ever-rising prices Rising commodity prices are a permanent new feature of the new global economic landscape. Their ascent reflects the world’s shift in economic power from west to east. It is time we got used to it. Recent price rises have been extraordinary; so much so that… Continue reading Inflation
Los Angeles Times – Oil falls, but gasoline prices are still rising Oil prices took a tumble, but the relentless rise in retail gasoline prices continued overnight. The national average for a gallon of regular gasoline reached $3.833 Monday, according to the AAA Fuel Gauge Report, which is compiled by the Oil Price Information Service… Continue reading Explaining High Chicago Gas Prices
The Wall Street Journal – ABCs of S&P Changing Ratings Outlook to ‘Negative’ Standard & Poor’s surprised global markets with its move to revise its ratings outlook on U.S. debt to “negative.” While the ratings firm affirmed America’s top-notch triple-A rating, the move marked a first for S&P. The company hadn’t altered its “stable” U.S.… Continue reading More Color On S&P’s Rating Outlook For The U.S.
Real Time Economics (WSJ Blog) – Fed’s Bullard: Monetary Policy Ultimately Aimed at Headline Inflation In a speech offering an optimistic outlook for the economy, a Federal Reserve official said monetary policy is ultimately devoted to controlling headline inflation levels, and no other measure of price pressures. “Headline inflation is the ultimate objective of monetary… Continue reading Bullard Weighs In On The Federal Reserve’s Preferred Inflation Measure
<Click on chart for larger image> Bloomberg.com – Americans Shun Cheapest Homes in 40 Years as Owning Loses Appeal Victoria Pauli signed a one-year lease last week to stay in her rental home in Fair Oaks, California. She had considered buying in the area, where property prices have slumped 57 percent since a 2005 peak.… Continue reading Home Ownership Rate
The Financial Times – Funds accuse banks of manipulation Three investment funds have accused a group of US, European and Japanese banks of conspiring to manipulate the benchmark interest rate used to calculate the cost of billions of dollars of debt. The 12 banks named in the suit filed in a New York Federal Court… Continue reading Let The LIE-BOR Lawsuits Begin
<Click on chart for larger image> The Wall Street Journal – U.S. Hurries to Sell GM Stake The U.S. government plans to sell a significant share of its remaining stake in General Motors Co. this summer despite the disappointing performance of the auto maker’s stock, people familiar with the matter said. A sale within the… Continue reading Another Block Of Government Motors’ Shares To Hit The Market This Summer
Conseulo Mack’s WealthTrack – Interview with Jim Grant On this week’s Consuelo Mack WealthTrack, Financial Thought Leader James Grant explains why he believes the Federal Reserve’s easy money policies will wreak havoc on the economy and markets. The dangers of inflation creep and how to protect yourself against it are the focus of this week’s… Continue reading Why You Should Worry About Inflation
Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010. “Absolutely not,” Geithner said, when asked in an ABC News interview broadcast yesterday whether a downgrade is a concern. “That will never happen… Continue reading Negative Outlook For U.S. Debt
<Click on graphic for larger image> Fundmastery (blog) – Gundlach, Treasury Bonds & QE II In a recent presentation, Jeffrey Gundlach, portfolio manager of DoubleLine Total Return Bond Fund presented an interesting chart on U.S. Treasury interest rates and quantitative easing (QE). Gundlach believes QE I and QE II actually contributed to higher rates on… Continue reading Why Are Rates Rising While The Federal Reserve Buys Bonds?