Marta of RBC Sees Need for `Bailout’ in Credit Markets

Moving to www.subprimeinsight.com  Watch the video.

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David Tice Sees `Dramatically Lower’ Stocks in 5 Years

Moved to www.subprimeinsight.com. Come check us out.

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One Reason this Recession will be a “Whammy”

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 the Fed’s rate cuts for the past decade. Disclaimer: This is more of an opinion based on research, that won’t be discussed here, than a true analysis.

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One Reason the Fed cuts Won’t Save the Market

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 Rates” in 1982. Before then, the free market set the prevailing rates. Now, the Fed through the open market works to get the rate to its target. Here is the graph of the Target rates since 1982:

 

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