What is the Federal Reserve up to? Do they see a huge storm on their radar they are not telling us about? The banking/investment world has changed radically since the repeal of the Glass-Steagall Act allowing banks to merge with Wall Street investment firms. I recently asked, “Will The Next Bank Bailout Bankrupt America?” and followed it with “The New […]
» Read moreWikipedia tells us, “In the first Godfather movie, the ‘meeting of the Dons’ scene uses the Federal Reserve building exterior.” How appropriate! This Burning Platform “Quotes of the Day” grabbed me: “When we talk about company culture in the context of financial services, the first thing that comes to mind is the risky, unethical, and sometimes criminal behavior in the […]
» Read moreCan bank bailouts bankrupt America? Why would congress let it happen? In a recent Daily Pfennig, friend Chuck Butler tells about educating his grandsons about the worst president there has ever been: “…. I couldn’t let that one slip … I explained to them that Woodrow Wilson was the all-time worst president, … culminating with, he ushered in the Federal […]
» Read moreIn 1935, Parker Brothers introduced the game “Monopoly”. Wikipedia tells us: (my emphasis) “Monopoly is a board game…. Players roll…dice to move around the game board, buying and trading properties, and developing them with houses and hotels. Players collect rent from their opponents, with the goal being to drive them into bankruptcy. Money can also be gained or lost through […]
» Read moreChuck Butler’s recent Dow Theory Letter article (behind paywall), “Central Bank Frustrations” was an eye-opener. Chuck removes any illusions about “trusting” central bankers. He quotes former Fed Chairman Ben Bernanke: “Given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will […]
» Read moreWhen we last checked, since 2009 the top banks had been fined a total of $204 billion. Bloomberg now reports, “Wells Fargo’s $1 Billion Pact Gives US Power to Fire Managers”: “The settlement covers issues in Wells Fargo’s auto-lending and mortgage units. The bank revealed last year that it had forced unwanted insurance on customers who took out car loans….” […]
» Read moreIn a recent interview with Chuck Butler, he warned us that we may be in for a significant “Minsky Moment”. The federal reserve is raising interest rates and unloading trillions in their US debt holdings. Countries that normally buy our bonds are slowing down their purchases or reducing their holdings. With fewer buyers, what happens if interest rates continue to […]
» Read moreFed Chairperson Janet Yellen reassured the world that she doesn’t believe there will be a run on the banking system, at least as long as she lives. “Would I say there will never, ever be another financial crisis? …That would be going too far but I do think we’re much safer and I hope that it will not be in […]
» Read moreDespite Federal Reserve Chair Janet Yellen’s expression of confidence in raising the federal funds rates, the worst of the tragic consequences of the government bank bailouts is yet to come. Part II of “The People Were Ruined” is on the horizon, and “the people” are going to suffer dramatically. William Gouge (1796-1863) was credited with the famous quote. His premise […]
» Read moreThe Keynesians and the Capitalists are heading for an economic showdown at the O.K. Corral. Keynesians believe the central government should control the economic levers affecting the masses. The economy can’t be entirely left up to the free market. Big government believers want the “leaders” determining the winners and losers. Controlling reallocation of wealth preserves the power of the political […]
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