Both the Stock and Bond Markets, which had been in deep oversold levels. had strong rallies today to start off October. One has to wonder how much of today’s action was propelled, by the Federal Reserve’s “Emergency” meeting on Friday? Over the years, whenever the markets have been having sharp declines, a group of mysterious…… Continue reading Plunge Protection Team?
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Danger Ahead?
Both the Stock Markets and Bond Markets of the world have had another negative week, with American stock markets closing at, or slightly below, the lows reached this past June. Bond markets, which tend to do well when stocks are falling, are however, also seeing a record decline in value, as the Federal Reserve continues…… Continue reading Danger Ahead?
England Tries Voodoo Economics
In 1980, George H.W. Bush, before becoming Ronald Reagan’s Vice President, coined the disparaging term, of “Voodoo Economics” to describe Reagan’s “supply side” policies, of big tax cuts. It referred to economic policies perceived by many, as being unrealistic and ill-advised. The Supply Side Economists around Reagan embraced this concept that by cutting taxes you…… Continue reading England Tries Voodoo Economics
“Don’t Fight The Fed”
September 22, 2022 On Wednesday, Fed Chairman Powell, made it clear that “this time he was really serious,” about fighting inflation, as he lifted interest rates, by 3/4’s of a point. At first, the stock market shrugged the news off as expected. But then later in the day, as his words indicated that interest rates…… Continue reading “Don’t Fight The Fed”
Financial Storm Ahead?
The markets around the world continue to show weakness as concerns grow that the Fed’s Quantitative Tightening (QT), program which is the opposite of their 12 years of Quantitative Easing (QE), will lead to a recession, and a hard stock market landing. Tomorrow, we will get the Fed’s monthly report, combined with a probably 1/2…… Continue reading Financial Storm Ahead?
Recession Ahead?
September 16, 2022 Before the opening of trading this morning, the folks at Federal Express –FDX threw a stink bomb into all the Wall Street happy talk that the bull market would resume shortly, as inflation was “peaking” and the Federal Reserve would pull off a “soft landing” for the economy. FDX’s chairman Raj Subramaniam…… Continue reading Recession Ahead?
A Dose of Reality
Tuesday, Sept 13, 2022 After a four day market rally, investors woke up to economic reality this Tuesday morning when the monthly consumer price index report showed a continuing high level of inflation, led by increasing rents and food costs. These increases offset the lower energy costs of the past month. Investors had been hoping…… Continue reading A Dose of Reality
Bond Market Warning?
September 12, 2022 I would like to call your attention to an article in today’s New York Times, by Joe Rennison, with the headline: “Fed’s Fading Support Puts Bond Market Back at Risk.” (Monday, 9/12/2022) As the Fed tries to reduce its swollen balance sheet of $9 Trillion Dollars (up from the $4 Trillion Dollar…… Continue reading Bond Market Warning?
A Dangerous Move?
September 11, 2022 On this anniversary of the September 11th attack on America, it is fitting we give some attention and thought to the millions of Americans that have contributed to the on going effort to maintain our unique Republic though great challenges, both internal, as well as external. On a completely unrelated note, Friday’s…… Continue reading A Dangerous Move?
An Impossible Task
The politicians have left Chairman Powell and the members of the Federal Reserve System with an impossible task; containing inflation without causing a recession. Since 2008-2009 the “No New Taxes” Republicans together with the “Medicare for All” Democrats have created an increase in the Federal Deficit now reaching 33 Trillion Dollars. Adding to that fiscal…… Continue reading An Impossible Task