Quantitative Easing and the Electronic Money Printing Machine – Saying Goodbye to Historically Low Mortgage Interest Rates. Federal Reserve 95 Percent Complete on Buying $1.25 Trillion in Mortgage Backed Securities.
People forget that quantitative easing is a form of creating something out of nothing. This extreme form of monetary policy is called upon in certain situations when central banks reach the zero bound with their funds rate like the Federal Reserve in this current crisis. What is quantitative easing? The Federal Reserve trying to solve […]
Banking and Housing Payments Devoured the Middle Class Income – 1 out of 10 Americans on Food Stamps and how the Fed Slowly Devalued the Dollars in your Wallet.
It is a challenge to say that things are getting better when every month that goes by more Americans are losing their jobs or needing to apply for food assistance. In the latest data for food assistance through SNAP we find that 200,000 more Americans were added to the program. That now brings the total […]
Commercial Real Estate Holders Decide to Walk Away: The Continuing Double Standard from the Banking Industry. Debt Ceiling Raised to $12.4 Trillion Making Room for more Bailouts.
There will be many new financial stories in 2010 but one that is certainly to garner much attention is the implosion of the commercial real estate market. A $3.5 trillion market that has taken it on the chin alongside the residential real estate market. The commercial real estate debacle usually follows a similar pattern. Residential […]
The Ponzi Decade: A Lost Decade in Stocks, Industrial Production, U.S. dollar, and Housing. How we Managed to Inflate and Destroy the Biggest Financial Bubble of our Generation.
It is fitting that we end the current decade just like we started it, with the bursting of bubbles. In the early part of the decade we were dealing with the fallout of the technology bust. That was quickly replaced by the even bigger housing bubble and that has now popped as well. The trillions […]