Roubini believes that further attempts at intervention have only increased the magnitude of the problems with sovereign debt. He says, "Now you have a bunch of super sovereigns— the IMF, the EU, the eurozone—bailing out these sovereigns." Continued....
Investing for Beginners - Combining Economics, Fundamentals and Technicals for the Savvy Investor.
Stock Market Prowess - Mastering Profitability
In fact, the American economy appears to barely be able to keep joblessness from rising further. US unemployment has held steady at 9.6% since August. For the three months ending in September, GDP grew at annual rate of 2% -- still a bit short from the 3% minimum needed to solidly keep the jobless rate from trending up. But the economy needs to grow at more than double that rate -- 5% -- in order to shrink the unemployment rate by just one percentage point.
Stock Market Basics - Combining Economics, Fundamentals and Technicals for the Savvy Investor.
Stock Market Prowess - Mastering Profitability
Posted by Nin-Hai Tseng, reporter CNNMoney.com
Many economists and market commentators are convinced that the Fed's move to pump $600 billion into the economy by buying up long-term bonds will do more harm than good for America's economic recovery.Quantitative easing, as it's technically called, is rarely used by central bankers to boost the economy. So while the Fed's last-ditch policy prescription might be well intended, the outcome is still very much uncertain.
If it's successful, a few things would happen:
Stock Market Basics - Combining Economics, Fundamentals and Technicals for the Savvy Investor.
Stock Market Prowess - Mastering Profitability
In today’s volatile investment world, it is the key to preserving and growing your wealth. In bull markets you can get away with a lack of discipline on the valuation front. In a post credit crisis world characterised by monetary disorder, you don’t have that luxury. The concept of the margin of safety simply refers to the difference between a company’s share price and its intrinsic value. Valuations are subjective and are only as good as the assumptions you make. Continued......
Investing for Beginners - Combining Economics, Fundamentals and Technicals for the Savvy Investor.
NEW YORK (CNNMoney.com) -- China moved Wednesday to put price controls in place to deal with rising inflation pressures. The government announced price control guidelines and said it would put state reserves of grains, edible oils and sugar on the market when necessary in order to guarantee supplies, according to Gov.cn, the English language Web site of the Chinese government.
Stock Market Prowess: Stock Market Basics - Combining Economics, Fundamentals and Technicals for the Savvy Investor
Did you pay attention to our "Crash Alert" flag, dear reader? Hope so. This market is dangerous. Because it is built on a lie - that EZ money from the Fed's printing press will cause stocks to rise, interest rates to go down, and the economy to revive.
It ain't gonna happen...........
Investing for Beginners: Combining Economics, Fundamentals and Technicals for the Savvy Investor
We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued. We do not believe such a plan is necessary or advisable under current circumstances. The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment.
We subscribe to your statement in the Washington Post on November 4 that “the Federal Reserve cannot solve all the economy’s problems on its own.” In this case, we think improvements in tax, spending and regulatory policies must take precedence in a national growth program, not further monetary stimulus.
We disagree with the view that inflation needs to be pushed higher, and worry that another round of asset purchases, with interest rates still near zero over a year into the recovery, will distort financial markets and greatly complicate future Fed efforts to normalize monetary policy.
NEW YORK (CNNMoney.com) -- The commodities rally has cooled off, with prices for precious metals, oil and agricultural raw materials plunging Friday after a record-breaking run earlier in the week.
A surprise jump in China's inflation rate spooked investors and sparked a sharp sell-off Friday. China's announcement that consumer prices in the country rose 4.4% in October fueled fears that the world's second-largest economy is barreling ahead at an unsustainable speed. Read on....
Stock Market Prowess: Stock Market Basics - Combining Economics, Fundamentals and Technicals for the Savvy Investor
