Yesterday, I pointed out the dwindling power of the Fed to stop recessions and deflation. The day before, I pointed out the financial industries inability to capture the upside of the Fed cuts in the short term since they have a severe funding crises. Today we’ll take a closer look at the unintended consequences of [...]
Archive for the ‘Federal Reserve’ Category
One Reason this Recession will be a “Whammy”
Posted in Analysis, Federal Reserve, Jim Cramer on February 6, 2008 | Leave a Comment »
One Reason the Fed cuts Won’t Save the Market
Posted in Analysis, Federal Reserve, Uncategorized, tagged Federal Reserve, Interest Rates on February 6, 2008 | 1 Comment »
Last month, we saw the Federal Reserve cut the Fed Funds Rate a full 125 basis points (1.25%) to 300. What does that mean historically? In the following article we will take a look at just how dramatic the Fed’s 125 basis cut in 8 days means. The Fed started issuing “Target [...]
One Reason Last Week’s Market Rally was a Bear Rally
Posted in Analysis, Federal Reserve on February 5, 2008 | 1 Comment »
After the Market plummeted to begin the year, it staged a magical 4.9% week to finish January. Don’t believe the magic. In the following analysis I take a look at why last week should be described as the market’s emotional attempt at a bear market rally. To get a closer look at the financial sector, [...]
Fed Cuts Discount Rate to 3.5%
Posted in Federal Reserve, News, tagged Federal Reserve, News on February 3, 2008 | Leave a Comment »
After deciding to cut the Fed Funds Rate to 3.0% on Wednesday, the Federal Reserve bank has slashed the discount rate to 3.5%. While the Fed Funds Rate determines the rate that banks can charge one another for borrowing money, the discount rate controls what the banks get charged after directly borrowing from the Fed. [...]
