One would think the stock market would respond positively to a Fed announcement declaring its intention to keep rates low. But today's markets tanked on this news.
Wednesday, June 24, 2009
Thursday, April 10, 2008
Wall Street Journal Sees It
The Wall Street Journal reports a wave of global inflation, including the highest rate of inflation in Europe in over a decade.
Monday, March 17, 2008
Bear Stearns goes for pennies on the dollar
JPMorgan Chase is buying out subprime victim Bear Stearns at a steep discount. Bear, which was as recently as last year selling at $170/share went out at about $2.
The Federal Reserve Bank's response is to finance buyouts such as this, followed by promises of even more rate cuts on Tuesday. Estimates range from fifty to one hundred basis points. It's doubtful that this will stem the tide in the credit markets, and from an inflation perspective, it's a bit like pouring gasoline on a fire.
This is not a good day.
The Federal Reserve Bank's response is to finance buyouts such as this, followed by promises of even more rate cuts on Tuesday. Estimates range from fifty to one hundred basis points. It's doubtful that this will stem the tide in the credit markets, and from an inflation perspective, it's a bit like pouring gasoline on a fire.
This is not a good day.
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