Regulatory reform of the US financial system has been put on the front burner with the Obama Administration’s outline of changes it desires. No argument here that reforms are necessay as the ‘too big to fail’ banks essentially embarked on a campaign to put greed in front of integrety and the law to issue credit through syndications of pools of loans sold to others around the world. The Obama Adiministration seeks to
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June 18, 2009 - Economy, Markets, Politics - 0 Comments
Major market indices have moved considerably higher posting above-normal recessionary highs while also hovering atop their 200 day moving averages. Meanwhile the dollar is being pressured as a result of investor’s steadfast belief that emerging market economies will eventually decouple from the impaired developed economies. The falling dollar, not an unopposed move by the US Treasury as it seeks to spur the
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June 11, 2009 - Economy, Markets, Politics - 0 Comments
These are extraordinary times and no series of actions underscores this fact than the actions of the Federal Reserve and US Treasury to stabilize the banking system. Because of these unprecedented actions crossing the line from monetary to fiscal policy, the Congress sought to amend GAO oversight and audit of the Fed’s actions. Originally Senate Amendment 1021 would have amended the Federal Reserve Act’s
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June 6, 2009 - Markets, Politics - 0 Comments
The current economic problem is how to get the economy growing again to produce near full employment. Overcapacity has quelched capital spending while high capital costs for businesses combined with low final demand means there is no incentive to expand. Exacerbating this dilemna is the need for greater government tax revenues to fund deficit spending and pay down the massive, expanding national debt. But raising taxes is a further disincentive for growth and employment and cutting government jobs, even by bringing home the troops home from Iraq, only adds to an
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May 27, 2009 - Economy, Markets, Politics - 0 Comments
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