May 24th, 2021 As we approach the June 1st deadline set by Treasury Secretary Janet Yellen, the two political parties still seem miles apart on resolving the looming debt crisis. Although the markets are taking it all in with a degree of “we seen this movie before” attitude, and assume the problem will be resolved,…… Continue reading Deal, or No Deal?
Month: May 2023
The Debt Problem
May 20, 2022 This weekend, the politicians are suppose to reach a Sunday compromise, in order to once again raise the debt limit from the current level of $32 Trillion Dollars, and avoid the U.S. Government defaulting on its debt obligations. The two sides seem to be very far apart, so my guess they will…… Continue reading The Debt Problem
Sell in May, Go Away
May 3, 2023 Fed Chairman Jerome Powell held his monthly meeting today, oblivious to the crisis in the banking industry, which has been precipitated by the Fed’s interest rate increases over the past year. As widely anticipated, Fed increased Fed Fund Rates another 1/4 point to 5% – 51/4%, with maybe a pause in the…… Continue reading Sell in May, Go Away
Dimon or Munger?
May 2, 2023 Only one day after Jamie Dimon’s bank JPM swallows the good pieces of FRC with the help of a $30 Billion loan from the Federal Reserve, the market gets spooked by concerns that the debt ceiling may be reached in early June. Jamie Dimon says that with this step, “…this part of…… Continue reading Dimon or Munger?
Banking Problems Solved?
Monday, May 1st, 2023 Before the market opening on Monday, it was announced that JP Morgan (JPM) the biggest U.S. Bank will be “buying” First Republic Bank’s (FRC) assets and some of its liabiities, from the Federal Deposit Insurance Fund, with $50 Billion of Federal Reserve provided loans. The failure of FRC is the second…… Continue reading Banking Problems Solved?