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Previewing the Fed Minutes
Wednesday, July 11, 2012 - 12:13pm | 298The minutes of the June meeting of the Federal Reserve are set to be released at 2 p.m. EST Wednesday, and markets will be watching closely for talk of further quantitative easing and the rationale behind the decision to extend Operation Twist. In June, the Federal Open Market Committee (FOMC)...
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Dissecting Bernanke's Comments: Central Bank Watch 3.1
Thursday, June 7, 2012 - 12:22pm | 676Chairman Bernanke's testimony on Capital Hill just ended, so let us recap what he said and what the implications are for further easing efforts by the Fed. Leading into the meeting, the market had high expectations of a new QE program, but as I pointed out on numerous occasions, it is much more...
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More Pain at JPM: Trading Loss Doubles, Implications for Others
Tuesday, June 5, 2012 - 9:20am | 416The trading loss in JP Morgan Chase's (NYSE: JPM) Chief Investment Office continues to grow, as credit conditions around the world deteriorated further after reporting a massive trading loss on May 10. Chief Executive Jamie Dimon at the time said that the losses were tied to credit derivatives the...
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Does Lackluster Data Mean QE3? Not Yet...
Friday, June 1, 2012 - 10:54am | 407After the dismal Non-Farm Payrolls Report and the lackluster ISM release, it is hard to see where the growth is coming from. In this light, what are the chances of QE3? How low can rates go? These are all valid questions in this environment, so let us discuss. The chances for QE3 are higher now...
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UK, US Suggest QE Might Actually Work
Tuesday, February 14, 2012 - 1:26pm | 441The Bank of England decided last Thursday to continue its monetary policy based on quantitative easing. Partially due to the weakness of the Eurozone countries, the Bank of England committed to issuing another 50 billion pounds through QE to improve liquidity, so businesses can take out loans and...
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US Dollar Moves Higher, Breaks Trend
Friday, February 3, 2012 - 10:42am | 470Since the financial crisis of 2008, the US dollar has traded on fundamentals far removed from traditional forex trading expectations. Now, with signs of economic turnaround, the dollar may be returning to trade in-line with traditional patterns. On Friday, Nonfarm payrolls for the month of January...
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How to Fix a Sucky Economy in Ten Minutes
Wednesday, August 17, 2011 - 11:46am | 1204By now, it should be clear to everyone that the economy needs another boost. Growth is flat, unemployment is high, and the economy overall just sucks. That's actually the technical term, believe it or not. "The Economy Sucks" is defined as "the period that sure feels like a recession, but isn't...
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How To Play The Coming Recession
Monday, August 1, 2011 - 2:26pm | 902U.S. Treasuries have always been seen as a "safe" investment, backed by the full faith, and credit of the U.S. government." Yet with worries about the debt ceiling, and the possibility of a downgrade of U.S. debt, we have seen the continued move down in yields on U.S. Treasury debt. Many market...
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Has Ben Bernanke Gone Global With a QE Plan for Greece?
Wednesday, July 20, 2011 - 11:13am | 901Stop me if you've heard this one. Ben Bernanke, Goldman Sachs, and a taxpayer walk into a bar. I don't remember the rest, but it involves an ex-wife, a Greek donkey, and trillions of dollars of burning, worthless money. Lost in the non-existent punchline is the unfunny realization that Europe is...
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Core Inflation on the Rise: Are Paul Krugman and Other Deflationists Wrong?
Wednesday, June 15, 2011 - 4:47pm | 680There are different measures of inflation. There is the headline measure of inflation and core inflation. Headline inflation takes the price of food and energy into account, while core inflation does not. Headline inflation is a measure of what economic agents feel in the economy on a day-to-day...
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Is Ben Bernanke Sabotaging the Chinese Economy?
Wednesday, June 15, 2011 - 10:44am | 1234Federal Reserve Chairman Ben Bernanke may be engaged in a subtle act of economic warfare. It appears as though he is exploiting a fault in Chinese economic policy for the benefit of the United States. A Korean economist named Ha-Joon Chang wrote a book ten years ago titled "Kicking Away the Ladder...