Federal Reservations

Over the past several years, the Federal Reserve and the U.S. government have tried everything that they can think of to stimulate this dead horse of an economy but nothing has worked.  The Fed has slashed the federal funds rate to record low levels, mortgage rates have been pushed to all-time lows and the U.S. government has spent hundreds of billions of dollars in an effort to get the economy going.  But despite all these of these extraordinary efforts, the U.S. economy continues to … [visit site to read more]

Originally from Daily Markets

On Tuesday, the Federal Reserve Board approved Chinese Investment Corporation’s (“CIC”) bid to buy up to 10% voting stake in Morgan Stanley (NYSE:MS) as part of an agreement signed in 2007. The Fed allowed the stake purchase after CIC stated that it will not seek controlling interest and will not occupy more than one seat on the board of directors of the company. CIC’s current stake in the company is 2.49%.
 
CIC, a wealth fund wholly owned by the Chinese government for investing its … [visit site to read more]

Originally from Daily Markets

The global debt crisis and the war on deflation by the Federal Reserve is causing precious metals to approach a key resistance level.  Gold is nearing a 52 week high while silver is close to breaking $19.  A break above these levels on high volume could be the beginning of a major move higher.

Gold and silver has been a safe haven asset.  Many concerns were expressed if miners would collapse in a weak equity market.  However, since the last Federal Reserve meeting, gold and silver … [visit site to read more]

Originally from Daily Markets

While insisting that the Federal Reserve stands ready to take further steps to prop up the slowing economy, Fed Chairman Ben Bernanke’s speech at the Jackson Hole economic symposium last week also contained a telling concession: “Central bankers alone cannot solve the world’s economic problems.” Amid a renewed bout of job-shedding-to be expected given the impact of the now-waning fiscal stimulus-and weak consumer spending unresponsive to interest-rate cuts, Bernanke’s implicit message … [visit site to read more]

Originally from Daily Markets

While Bernanke continues to deny the potential of an economic downturn and tries to convince the market that he can save the economy with his impotent monetary policy, reliable and trustworthy economists like Robert Shiller say the Fed is out of bullets and the risk of a double dip is “imminent”:

… [visit site to read more]

Originally from Daily Markets

Commodities – Energy
Crude Oil Flat Ahead of Plethora of Data
Crude Oil (WTI) - $75.17 // $0.00 // 0.00%
Commentary: Crude oil will attempt to build upon last week’s three-day rally that saw the commodity bounce from a low of $70.76 to $75.59. But, as much of that rally can be attributed to oversold conditions, it will be difficult to repeat such performance, especially given that the U.S. economic outlook remains extremely challenging in the near-term. While Fed Chairman Ben Bernanke’s … [visit site to read more]

Originally from Daily Markets

Morning Highlights

Singapore market opens higher after Wall Street closed up on Friday on Federal Reserve’s comments that it was ready to take further steps to support the US economic recovery.
Last week, market has been seen consolidating between 2900-2950. We are expecting further consolidation from this point, after which, market will eventually gain momentum on the upside. Nonetheless, please do be mindful of the support at 2900.
Till then, our market sentiment remains neutral.

Starhub … [visit site to read more]

Originally from Daily Markets

Don’t worry everybody. Federal Reserve Chairman “Helicopter Ben” Bernanke says that the U.S. economy is going to be just fine, and that if it does slip up somehow the Federal Reserve is ready to rush in to the rescue. That was essentially Bernanke’s message to an annual gathering of central bankers in Jackson Hole, Wyoming on Friday. Bernanke insisted that even though the Federal Reserve has already cut interest rates to historic lows it still has plenty of tools that could be used to … [visit site to read more]

Originally from Daily Markets

Hail Mary passes are typically thrown late in a game in an attempt to clutch victory from the jaws of defeat. Ben Bernanke’s statement at the Fed’s Jackson Hole conference this past week is an indication that he is getting ready to throw his “Hail Mary”. The problem that I see, though, is that our ‘game’ is only somewhere in the second quarter. How does this happen?
Have you ever witnessed a football game where one team literally has to scrap its’ game plan because it finds itself … [visit site to read more]

Originally from Daily Markets

Kansas City Federal Reserve President Thomas Hoenig sits down for a one-on-one interview with CNBC’s Steve Liesman at the annual central bankers meeting in Jackson Hole, Wyo.
Mr. Hoenig recently stated: “Monetary policy is a useful tool, but it cannot solve every problem faced by the United States. In trying to use policy as a cure-all, we will repeat the cycle of severe recession and unemployment in a few short years by keeping rates too low for too … [visit site to read more]

Originally from Daily Markets