October 18 will signify either a salvation or a prolonged suffering for Greece. The euro-zone leader’s summit, set for the 18th in Brussels, will complete the modifications to the European Financial Stability Facility, the bailout fund used to save Portugal and Ireland last year, to have the extended funds and power to bail out Greece. ... Read More »
Japan, the second largest foreign government that effectively owns the US debt, has been hit with a catastrophic earthquake and tsunami. This probably means noticeably higher interest rates across the board for Americans over the next year or so as they rebuild and start selling US gov securities in order to pay for their reconstruction. ... Read More »
Ironically, if you like this article, make sure to click the “like” button at the top of this page. It’ll show up on your Facebook wall, and the irony of spreading this article via Facebook is just too much for me to pass up. For reasons I can’t figure out, Goldman Sachs thinks that that ... Read More »
Despite so much focus on the policies of the Fed, its operations remain somewhat of a mystery to most investors — in no smaller measure, due to their complexity. So, we put together a free resource for our Club EWI members: a 35-page report that explains the Fed, its goals and, very importantly, its limitations ... Read More »
The Federal Deposit Insurance Corporation (the FDIC) is the staple of American banking security and stability. People aren’t afraid of putting their money in the bank because the government is essentially going to insure their deposits, up to $250,000 per account. But unfortunately, the FDIC is understaffed and bankrupt. As of May, they had negative ... Read More »
This has been a sensational financial weekend, primarily because many homeowners are temporarily off the hook for their liabilities. On Friday, Bank of America announced it would temporarily suspend foreclosures due to paperwork discrepancies with some creditors. Other lenders, including JPMorgan Chase, have followed suit. The housing market has weathered a dicey summer after a ... Read More »
A few days ago, Bloomberg News reported that Bill Gross made an $8.1 billion wager that the US economy won’t suffer from a “lost decade” of deflation like Japan just recently experienced. This caused quite the uproar, with some financial experts claiming it was a good bet, with others claiming it was a bad bet. ... Read More »
A couple of months ago, I was with a group of radical anti-capitalists. They thought that government was the answer to life, the universe and everything. They thought that businessmen secretly cheat on their wives and beat their children, whereas the poor starving individual was heroically beaten down by the brutal financial leaders. Maybe I’m ... Read More »
As General Motors prepares for its initial public offering, Chrysler and Ford will try to cut a corner. Amidst all the commotion, shareholders are looking at critical flaws with Detroit’s fundamentals.
The United States Federal Government is suing all three of the nation’s biggest credit card companies. MasterCard and Visa have settled out of court, but American Express won’t go down without a fight. Credit card companies require, in their policies, that retailers accept all or none of the cards bearing their logo. Thus, my US Bank ... Read More »
Several days ago, the IMF pointed out that intervention in the economy can slow down the recovery. One of the more obvious reasons for this is that the intervention would be wrong-headed — the wrong laws, reforms, and restrictions. But another less-discussed reason intervention can slow down economic growth is because it makes businesses less ... Read More »
You probably don’t think too much about your money outside of how to make it or how it should be spent. It buys milk, cars, and DirectTV. You take home that check every Friday that perpetuates the cycle. Unknown to most of us, however, is how the United States Federal Government controls how much money ... Read More »