All Entries in the "Economy" Category
Pimco’s Gross Says Fed Will Slash Rates to 4.25%
The market fell today on release of the December jobs report that showed the labor market added more jobs than expected. The minutes from the Fed’s December meeting, released earlier this week, reiterated its hard-nosed stance on inflation. So, any data that suggests that the economy is overheating creates fear of a rate hike. The problem is that [...]
The World’s Reserve Currency
I just did a search on my site for the word “inversely”. Over that past 4 months I have used that word 5 times. Here comes number six. Gold moves inversely to the Dollar. Source: Ron Paul’s Texas Straight Talk 1/1/2007 The financial press reported last week that the euro, the new currency created only [...]
Mr. Government Will You Keep Your Cotton-Picking Hands Out of the Market: I am Trying to Make a Buck
This is the second time in the past 2 months that governments’ interference with the market has cost me money. There are many other covert operations, but that’s for a different article. The two times that I am discussing were in plain view for all to see. The first occurrence was on November 1. The [...]
Can the Economy Survive the Housing Bust?
Here is a scary chart to consider. It plots the National Association of Home Builders’ Housing Market index – a monthly measure of builder confidence – against the Standard & Poor’s 500 stock market index, with a one-year lag. There has been a very close correlation between current builder confidence and future stock returns over [...]
Job Market Remains Solid
The Labor Department reported that November payrolls increased higher than the expected 110,000 jobs to 132,000 jobs in November. The unemployment rate edged up to 4.5% from from the 5 1/2 year low of 4.4% reached in October. If jobs are increasing – surely the economy must be stabilizing and just maybe our Homebuilder CEO friends are right – [...]
Impact of the Dollar Decline
It is hard for most Americans to get a grasp on what has been happening with the dollar. It’s not like the stock market where its price is quoted on the nightly news. Now if you frequently travel abroad – you have a better understanding. Your dollar buys less stuff every time you step off the plane, [...]
Fed Has Lost Control Over Interest Rates
I found another article our optimistic homebuilder CEOs should read. Jim Jubak, MSN Money Editor, in his latest article suggests that the Fed has lost control over interest rates. Jubak states, “The dollar’s tumble and Federal Reserve Chairman Ben Bernanke’s attempts to placate overseas investors are the clearest signs to date that the foreign investors [...]
Dollar Traders on Edge as They Suspect Fed is Wrong
It has taken some time for the fundamentals of the dollar to work its way to the front page. After the pounding it has taken over the past month, it is certainly drawing attention now. Just remember gold moves in the opposite direction of the dollar. Source: Financial Times Currency markets will open on edge [...]
An Email from Fed Chairman Bernanke
This is one of the best post that I have seen in awhile. Bernanke is taking transparency to a new level. From Ben Bernanke: Speaking on behalf of all the Fed members we thought it was time to honestly address the situation the country is facing. This is part of our new policy to be [...]
How I Would Have Blown a Housing Bubble? – If I Had Done It
Fortunately, the world was spared from O.J. Simpson’s book “If I had done it.” Unfortunately Alan Greenspan’s book with the same title has already been published and is climbing up the best sellers’ lists. Ron Peebles describes in a somewhat humorous manner Greenspan’s contributions to our biggest bubble to date – the housing bubble. Source: Prudent [...]
