http://www.freerepublic.com/tag/fed/ en-us Wed, 23 Jul 2008 18:42:40 GMT Focus Forum 15 http://www.freerepublic.com/focus/f-news/2050072/posts 25 signs of insolvency. ... And what can't be paid back will be defaulted on. If you didn't know it before, you do now: The entire US banking system is insolvent. Minyanville http://www.freerepublic.com/focus/f-news/2050072/posts#comment Wed, 23 Jul 2008 18:42:40 GMT http://www.freerepublic.com/focus/f-news/2048680/posts <p>Concern is growing over the present instability of financial markets among senior officials at the Bank of England and the US Federal Reserve.</p> <p>The Bank of England’s Governor meanwhile sounded a warning last night that markets and the global economy may be set for a period of greater turbulence triggered by rising interest rates around the world.</p> Times Online UK via I Tulip.com Blog http://www.freerepublic.com/focus/f-news/2048680/posts#comment Mon, 21 Jul 2008 09:57:42 GMT http://www.freerepublic.com/focus/f-news/2047357/posts Worst Case ScenarioBy John RileyChief Strategist07/15/08 What a year - bank and brokerage failures, Federal bailouts, sub-prime mortgage mess and a looming derivative disaster. What would happen if things continue to unravel? What would that look like?Runs on the BanksWith the failure of IndyMac, we’ve already seen a run on a bank force its closure. What if a few more banks had runs? Depositor panic could cause runs at several banks that are on the edge of failure. A run could push them over. The FDIC is spending about 10% of its reserves on bailing out IndyMac. How many more... Cornerstone http://www.freerepublic.com/focus/f-news/2047357/posts#comment Fri, 18 Jul 2008 08:24:49 GMT http://www.freerepublic.com/focus/f-news/2048011/posts "Raise less corn and more hell," Mary Elizabeth Lease harangued Kansas farmers during America's Populist era, but no such voice cries out today. America's 21st-century financial victims make no protest against the Federal Reserve's policy of showering dollars on the people who would seem to need them least. Long ago and far away, a brilliant man of letters floated an idea. To stop a financial panic cold, he proposed, a central bank should lend freely, though at a high rate of interest. Nonsense, countered a certain hard-headed commercial banker. Such a policy would only instigate more crises by egging on... Wall Street Journal http://www.freerepublic.com/focus/f-news/2048011/posts#comment Sat, 19 Jul 2008 15:02:48 GMT http://www.freerepublic.com/focus/f-news/2046409/posts Chairman Ben Bernanke of the Federal Reserve told Congress on Wednseday that he believes Fannie Mae and Freddie Mac will make it through the storm in the U.S. housing market. On Bernanke's second day before Congress, this time in front of Rep. Barney Frank's House Financial Services Committee, the Fed chairman said the troubled Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) were adequately capitalized, and were in no danger of failing. Forbes.com http://www.freerepublic.com/focus/f-news/2046409/posts#comment Wed, 16 Jul 2008 17:40:43 GMT http://www.freerepublic.com/focus/f-news/2046107/posts Economy: Based on his testimony Tuesday, Fed Chairman Ben Bernanke seems to be in an intellectual tug-of-war with those on Wall Street who think interest rates need to rise, not fall or stay the same. We hope he wins.The nation's top central banker had plenty to say about the economy, and much of it was pretty gloomy. Indeed, it was his remarks — coupled with President Bush applying more pressure on Congress to allow drilling for more oil — that led to the biggest one-day drop in crude prices in 17 years. Bernanke outlined all the Fed's done so far... IBD Editorial http://www.freerepublic.com/focus/f-news/2046107/posts#comment Wed, 16 Jul 2008 02:07:44 GMT http://www.freerepublic.com/focus/f-news/2046006/posts NEW YORK -- "The era of big government is over." So said President Bill Clinton more than 12 years ago in a statement that was never accurate. The government stayed big. And after the recent -- and justified -- interventions to prop up some big U.S. financial institutions, it's appropriate to say the era of government is now bigger than ever. It's going to stay that way for a long while, regardless of who becomes the next president. Neither of the presumptive major candidates -- Barack Obama and John McCain -- is a traditional, hands-off economic conservative. That's a... Dow Jones Newsplus http://www.freerepublic.com/focus/f-news/2046006/posts#comment Tue, 15 Jul 2008 22:33:03 GMT http://www.freerepublic.com/focus/f-news/2045290/posts The central bank has been justifiably on inflation watch lately. But fears about a Fannie and Freddie meltdown may force the Fed to hold back on rate hikes. Inflation risks haven't gone away, but the Federal Reserve might not be able to do much about it right now. Inflation hawks had been hoping the Fed would finally start to attack rising prices by raising interest rates. But the near-meltdown of Fannie Mae and Freddie Mac could tie the Fed's hands, forcing the central bank to keep rates low. Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500), the two government-sponsored... CNN http://www.freerepublic.com/focus/f-news/2045290/posts#comment Mon, 14 Jul 2008 18:08:37 GMT http://www.freerepublic.com/focus/f-news/2045052/posts The US government last night moved to provide state support to ailing mortgage agencies Fannie Mae and Freddie Mac amid heightened concern over their solvency. The Federal Reserve took the unprecedented step of bailing out Fannie and Freddie in a move designed to prevent their collapse and with it to secure the stability of the wider mortgage market. The board of the Fed, chaired by Ben Bernanke, voted to allow the New York Federal Reserve to lend to Fannie Mae and Freddie Mac should such lending as prove necessary. Meanwhile, the US Treasury said it would seek approval from Congress... The Telegraph http://www.freerepublic.com/focus/f-news/2045052/posts#comment Mon, 14 Jul 2008 05:59:49 GMT http://www.freerepublic.com/focus/f-news/2045057/posts Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies. Their support for the housing market is particularly important as we work through the current housing correction. GSE debt is held by financial institutions around the world. Its continued strength is important to maintaining confidence and stability in our financial system and our financial markets. Therefore we must take steps to address the current situation as we move to a stronger regulatory structure. In recent days, I have consulted with the Federal Reserve,... The Financial Times http://www.freerepublic.com/focus/f-news/2045057/posts#comment Mon, 14 Jul 2008 06:58:38 GMT http://www.freerepublic.com/focus/f-bloggers/2044961/posts On Friday Treasury Secretary Paulson Said Keep Fannie and Freddie in Current Form. U.S. Treasury Secretary Henry Paulson signaled that a government takeover of Fannie Mae and Freddie Mac won't be necessary, saying they should continue as shareholder-owned companies with federal charters. "Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission," Paulson said in a statement in Washington. Paulson's remarks indicate he wants to reassure shareholders they won't be wiped out by any government efforts to ensure the stability of the firms that own or guarantee almost... Mish's Global Economic Trend Analysis http://www.freerepublic.com/focus/f-bloggers/2044961/posts#comment Mon, 14 Jul 2008 00:38:05 GMT http://www.freerepublic.com/focus/f-news/2044956/posts The U.S. Treasury and Federal Reserve, capping a weekend of high-stakes maneuvering, attempted to shore up confidence in Fannie Mae and Freddie Mac by announcing a plan that placed the federal government firmly behind the battered mortgage giants. In a statement timed to precede the opening of markets Monday, as well as a closely watched auction of debt by Freddie, the Treasury said it plans to seek approval from Congress for a temporary increase in a long-standing Treasury line of credit for the two companies. The Treasury also said it would seek temporary authority so that it could buy equity... Wall Street Journal http://www.freerepublic.com/focus/f-news/2044956/posts#comment Mon, 14 Jul 2008 00:29:04 GMT http://www.freerepublic.com/focus/f-news/2044943/posts The U.S. Treasury Department and Federal Reserve on Sunday announced sweeping measures to lend money and buy stocks if necessary in embattled mortgage lenders Fannie Mae (FNM.N) and Freddie Mac (FRE.N). ADVERTISEMENT Acting before a key $3 billion sale on Monday of short-term debt by Freddie Mac, Treasury and the Fed unveiled a series of measures that made clear they want the shareholder-owned lenders to continue their pivotal role in U.S. financial and housing markets and to remain in private hands. "(Their) continued strength is important to maintaining confidence and stability in our financial system and our financial markets. Therefore,... Reuters http://www.freerepublic.com/focus/f-news/2044943/posts#comment Sun, 13 Jul 2008 23:42:56 GMT http://www.freerepublic.com/focus/f-news/2044924/posts U.S. rescues Fannie, Freddie Treasury Department raises credit line, has power to buy companies' stock. Fed will open discount-lending to two government-sponsored mortgage lenders. Paulson calls for new regulatory controls. marketwatch.com http://www.freerepublic.com/focus/f-news/2044924/posts#comment Sun, 13 Jul 2008 22:31:33 GMT http://www.freerepublic.com/focus/f-news/2044716/posts The Psychology of Ben Bernanke: The Great Depression was caused by the Federal Reserve. Was he Talking About the current Great Depression that is Sprouting Under his Watch? Lessons From the Great Depression: Part XIII. The Federal Reserve. Federal Reserve Chairman Ben Bernanke this week once again mentioned that the Federal Reserve was “strongly committed” to financial stability and is considering options like keeping the lending facilities open to primary dealers. In short, they are going to continue to bailout banks and Wall Street firms while Americans get the shaft. This is an important statement and the futures markets are... Dr. Housing Bubble http://www.freerepublic.com/focus/f-news/2044716/posts#comment Sun, 13 Jul 2008 07:31:36 GMT http://www.freerepublic.com/focus/f-news/2044193/posts WASHINGTON (MarketWatch) -- Shares of Fannie Mae and Freddie Mac bounced higher Friday afternoon on a report that the companies had been assured by Federal Reserve Chairman Ben Bernanke that they could borrow from the Fed if necessary. That was a nice statement of support from Bernanke on a day when Fannie and Freddie needed all the friends they could get. The fact is, even your Aunt Mabel could get an emergency loan from the Fed. Typically, the Fed has acted as a lender of last resort only for commercial banks. But the Fed has authority to lend to almost... MarketWatch http://www.freerepublic.com/focus/f-news/2044193/posts#comment Fri, 11 Jul 2008 23:43:51 GMT http://www.freerepublic.com/focus/f-news/2044182/posts IndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators in one of the largest bank failures in U.S. history. The Pasadena, Calif., thrift was one of the largest savings and loans in the country with about $32 billion in assets. It now joins an infamous list of collapsed banks, topped by Continental Illinois National Bank and Trust Co., which failed in 1984 with $40 billion of assets. IndyMac specialized in Alt-A loans, a type of mortgage that can often be offered to borrowers who don't fully document their incomes or assets.... Wall Street Journal http://www.freerepublic.com/focus/f-news/2044182/posts#comment Fri, 11 Jul 2008 23:18:12 GMT http://www.freerepublic.com/focus/f-news/2043411/posts Reuters) - Mortgage lenders Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) are "insolvent" and may need a U.S. government bailout, former St. Louis Federal Reserve President William Poole was quoted as saying in an interview with Bloomberg. "Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer," Poole was quoted as saying in an interview held on Wednesday. Chances are increasing that the government may need to bail out the two mortgage companies, Poole was quoted as saying. Shares... Reuters http://www.freerepublic.com/focus/f-news/2043411/posts#comment Thu, 10 Jul 2008 14:07:50 GMT http://www.freerepublic.com/focus/f-news/2043195/posts They Still Don’t Get It By John Riley Chief Strategist 07/02/08 On June 29, in the prestigious Financial Times, Former Treasury Secretary and Harvard University President, Larry Summers wrote an article which shows that policy wonks don’t really understand the problems in our financial markets. His article, “What we can do in this dangerous moment” starts out great and I had hopes that maybe after years of toiling next to Greenspan, he rejected the Maestro's views and had seen the light. He hasn’t. (Dr. Summers quotes will be in blue italics.) “It is quite possible that we are now at... Cornerstone http://www.freerepublic.com/focus/f-news/2043195/posts#comment Thu, 10 Jul 2008 01:17:14 GMT http://www.freerepublic.com/focus/f-news/2042608/posts U.S. financial markets need to be made more resilient and stable, Bernanke said, possibly by giving the central bank much broader authority. He also suggested the Fed may extend its emergency credit facility program for Wall Street banks. http://online.wsj.com/article/SB121551851320135555.html?mod=hps_us_whats_news Wall Street Journal http://www.freerepublic.com/focus/f-news/2042608/posts#comment Tue, 8 Jul 2008 22:00:24 GMT http://www.freerepublic.com/focus/f-news/2042412/posts Federal Reserve Chairman Ben Bernanke said on Tuesday the U.S. central bank may keep an emergency lending facility for big Wall Street firms open past year-end while it seeks to restore financial market stability. In remarks to a mortgage lending forum sponsored by the Federal Deposit Insurance Corp., Bernanke said credit costs have been driven higher and the pace of U.S. economic growth also has been hurt by market turmoil. "We are currently monitoring developments in financial markets closely and considering several options, including extending the duration of our facilities for primary dealers beyond year-end, should the current unusual and... Reuters http://www.freerepublic.com/focus/f-news/2042412/posts#comment Tue, 8 Jul 2008 15:12:31 GMT http://www.freerepublic.com/focus/f-news/2042322/posts Early this year, the price of crude oil surpassed its previous inflation-adjusted peak of $103.76 a barrel (a record established in 1980). Since then, the price of crude has been making new record highs on a regular basis... Just what is pushing prices skyward? Surprisingly, the G-8 finance ministers failed to mention the US dollar’s role. Every commodity trader knows that all commodities trade off changes in the value of the greenback... For example, if the greenback had held its January 2001 value against the euro, oil would have traded at about $76 a barrel in May 2008. This is... Cato Institute http://www.freerepublic.com/focus/f-news/2042322/posts#comment Tue, 8 Jul 2008 12:39:50 GMT http://www.freerepublic.com/focus/f-news/2042230/posts Not long after he took over at the Federal Reserve in 1987, Alan Greenspan was faced with questions about what to do with the Fed funds rate. After polling the various Fed presidents, in September of that year Greenspan found that there was "good growth, high optimism and full employment--all reasons to be leery of inflation." According to his biography the various FOMC members were persuaded "that the Fed would have to raise rates soon." In describing the thought processes at work, Greenspan plainly wrote that in order to "subdue inflationary pressures, we were trying to slow the economy by... Forbes http://www.freerepublic.com/focus/f-news/2042230/posts#comment Tue, 8 Jul 2008 04:45:12 GMT http://www.freerepublic.com/focus/f-news/2041192/posts How did the U.S. financial crisis happen? A review of the road to ruin reveals a course littered with more villains than heroes. No, it’s not the Great Depression, but the United States is facing a nasty economy-wide retrenchment following the excesses of the 2000s, with no easy way to dance through it. Think 1979 to 1982, when then U.S. Federal Reserve Chairman Paul Volcker exorcised consumer price inflation from the economy. The difference today is that the inflationary explosion has been absorbed by prices of assets—houses, stocks and bonds, office buildings—rather than by the prices of things you buy... Foreign Policy http://www.freerepublic.com/focus/f-news/2041192/posts#comment Sat, 5 Jul 2008 19:29:15 GMT http://www.freerepublic.com/focus/f-news/2038662/posts The Federal Reserve Bank of New York said on Thursday that it has extended a $28.82 billion loan to JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) for the acquisition of Bear Stearns. "Total credit extended by the New York Fed is lower than originally anticipated as a result of an extensive review of the portfolio," the New York Fed said in a statement on its Web site. In addition, JPMorgan has extended a $1.15 billion loan to a Delaware limited liability company (LLC), the statement said. The LLC, which will be consolidated on the books of the New York... Reuters http://www.freerepublic.com/focus/f-news/2038662/posts#comment Mon, 30 Jun 2008 17:36:57 GMT