Historically, gold has been an asset investors turn to in times of uncertainty, especially in regards to inflation. The same is true today. However, is the level of today’s gold prices justified? I believe the answer to that question depends on your belief in the Fed’s effectiveness and willingness to fight inflation. It is my […]
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Fed
As we expected the Fed cut the fed funds rate by 75bps, and made an equivalent move in the discount rate. What is interesting is that the Fed had two dissenters to the vote, Governor Plosser from Philly and Governor Fisher from Dallas, both wanted a smaller cut. Plosser is a well known hawk on […]
Inflation, we have been talking about, the market has been talking about it, but has the Fed? In short the answer is yes, but it appears the market may not think so. For the first time since its introduction in 1997, the 5-year TIP traded at a negative yield, implying a significant lack of confidence […]
As we mentioned in last night’s posting, we thought it would be possible to hear from the Fed before the next FOMC meeting if the US EQ markets looked to be down significantly, and they did… The Fed’s latest move should help reduce the risk of recession, stabilize the market, and prove the 2008 Fed […]
*I believe so and this is why… (A quick synopsis)http://www.federalreserve.gov/boarddocs/snloansurvey/ Looking at the trend from the past several Senior Loan Officer Surveys, we have seen lending standards for banks and consumers tighten, while demand has receded and spreads of loan rates verse the banks’ cost of funds are rising. We expect when the next wave […]