Mar
31
Fed Adds $100B On Top Of $200B To Market
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Update 20080419: Corrected spelling mistake.
I don’t understand the concept of continually adding money to a system that’s already under the threat of inflation, but apparently the Federal Reserve has added an additional $100 billion to the markets, after already adding $200 billion. That’s $300 billion (not including the $30 billion “investment” in Bear Stearns!) added to the markets. How can the currency maintain any semblance of value when the government just prints money?
Mar
31
More Criticism For Gov’t Overhaul of Financial System
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CNBC.com has a story on how the government’s new financial overhaul is (thankfully) drawing more criticism. Does anyone else think that the bailout of Bear Stearns could be considered an investment?
Updated: Read the text of Paulson’s speech here.
Mar
30
Bringing some much-needed debate about the amount of regulation needed in the global financial markets, it seems that that current administration has “…produced a plan calling for the greatest changes in financial regulation since many of the current oversight institutions were created in the 1930s.”
“The Federal Reserve would be a big winner, gaining new powers to serve as the protector of stability for the entire financial system. The plan would Read more
Mar
29
Reuters tells us that: “President George W. Bush said on Saturday he is looking to expand U.S. efforts to help struggling homeowners reduce their mortgage payments, as Democrats pressed for a more substantial federal role.”
The story continues: “Democrats in both the Senate and the House of Representatives are crafting legislation that would permit the FHA to offer $300 billion more in new guarantees to refinance distressed mortgages that banks and mortgage holders have agreed to write down.”
Three. Hundred. Billion. In Guarantees. Can that even be fathomed? From where is that money coming? Read more
Mar
28
BBC/AP Story Admits Some Americans Are “More Important” Than Others
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Using the very poor example of the late Anna Nicole Smith, the BBC is running a story on how there have been more passport breaches (after stories about how passport files for Obama, Clinton, and McCain were breached). The interesting line in the story is: “State department officials told AP the review involved several hundred US citizens whose passport files are flagged for extra because of their prominence”. The qualifications, appparently, for extra protection on your data are Read more