Federal Reserve Policy continued

I hope this will clear up a few loose conceptual ends.... keep reading

"Buy on the rumor. Sell on the news." Bulls had a chance to get out yesterday with a profit on the FOMC's quarter point reduction. That option got closed today.... keep reading

For months, Bernanke has told the public that the American economy was doing just fine. He has now consented to two target rate cuts, which are the classic sign of imminent recession. Now what?... keep reading

Now, here's a true Halloween story. Here is how real money is spent by ghosts.... keep reading

The mantra is "containment." The housing market has bottomed. The subprime affair is behind us. The SIV crisis will be solved in the next few months. No problem. Then why do we need a rate cut?... keep reading

Citigroup acted as an intermediary on the carry trade known as SIVs. Now its reputation is on the line.... keep reading

The press has not reported on this. I cannot explain it. But I report it for obvious reasons. This could be a breakdown in the making -- or a random, unprecedented anomaly. I hope the latter.... keep reading

If you pick the wrong asset class to monitor, you will be fooled about the rate of price inflation. Here's why.... keep reading

This is the chart of a little-known stock market index. Here, we see that the U.S financial system got into a meltdown phase in mid-August, 2007. Then the chart reversed sharply. It peaked in early October. It is headed lower again.... keep reading

Bernanke's theory of how capital markets operate is focused on the threat of poor information regarding risk. This tells us what we need to know about the widely forecasted rate cut next week.... keep reading

Why productivity around the indistrial world is going to fall, and why you must take steps for your income not to fall with it.... keep reading

The 367-point drop on October 19 sent a message: the smart money is scared. The fund managers are now facing new conditions. Here's what they must now decide.... keep reading

Will there be a rate cut by the FED at the end of October? Here is my prediction. It has to do with Ben Bernanke's motivation.... keep reading

There comes a time when a wise person needs to reconsider his plans. Now is such a time for anyone still in the U.S. stock market. Will bullish sentiment remain dominant in the face of near-panic selling? If so, how? The key indicator is against the bulls.... keep reading

If there is a bogeyman in the hard money camp, this is it.... keep reading

The FED has tightened money since February, 2006. The fallout is falling. The three biggest banks are trying to raise $80 billion to save a little-known market. Here is what is going on, and why.... keep reading