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Fed

The End of the Gravy Train?

Michael Farr | Posted 02.24.2015 | Business
Michael Farr

In the summer of 2013, a sharp spike higher in interest rates caused by the "taper tantrum" (fear that the Fed will soon end monetary easing) reduced both housing affordability and the opportunities to lower mortgage rates through refinancing.

A Race Against Time

Michael Farr | Posted 01.30.2015 | Business
Michael Farr

The year 2015 may yet produce solid returns for investors in US stocks. However, it's looking more and more likely that TINA ("There Is No Alternative"), more than any other factor, will be responsible rather than strong earnings growth.

Fed Decision

Jeff Danziger | Posted 01.29.2015 | Business
Jeff Danziger

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Bold Action Plan or Delusional Rant?

Michael Farr | Posted 01.21.2015 | Business
Michael Farr

Wherever you stand on the political spectrum, I think there are some undeniable truths regarding our economy that need to be addressed before we reach the next phase of robust and sustainable economic growth.

Taking Stock

Michael Farr | Posted 01.16.2015 | Business
Michael Farr

There are many positive signs in the US. Gross Domestic Product (GDP) for the 3rd quarter was up 5% on an annualized basis compared to the 2nd quarter (adjusted for inflation).

Time to Get Excited?!

Michael Farr | Posted 02.28.2015 | Business
Michael Farr

Surging stock prices will likely increase rather than decrease the costs of saving for retirement for most folks. Why? Because most people, including baby boomers who are inching closer to "retirement age", remain vastly underprepared for retirement.

Should the Fed Be Worried About Deflation?

Michael Farr | Posted 02.17.2015 | Business
Michael Farr

For an economy heavily dependent on consumer spending, this is not a trivial consideration.

Why Participation at the Federal Election Commission Matters, Despite the Agency's Dysfunction

J. Gerald Hebert | Posted 02.16.2015 | Politics
J. Gerald Hebert

Appearing before the FEC and offering testimony, even when some of its commissioners are determined to undermine the campaign finance laws Congress enacted, might look to some like an exercise in futility.

A Global Disease Called Deflation

Edward Goldberg | Posted 02.16.2015 | World
Edward Goldberg

Two weeks ago I wrote a piece entitled THE 5 KEY TRENDS IN GLOBALIZATION THAT ARE CHANGING AMERICA and THE WORLD. On account of on going geo/economic ...

How Globalization Changed America in 2014, and What It Might Mean for 2015

Edward Goldberg | Posted 02.07.2015 | Politics
Edward Goldberg

It is the season of lists: best movies, best books, and so on. I thought I should continue a tradition I started several years ago of creating a different type of list: a geo-political-economic list -- a list of the globalization top five from an American perspective.

The Squeeze of the Middle Class

Michael Farr | Posted 02.04.2015 | Business
Michael Farr

The median household income in 2013 was only slightly above that reported for 1995 (after adjusting for inflation), while costs for necessities like housing (rent), health care, and education are making it much more difficult for middle-class folks to get by. 

What Is Causing the Drag?

Michael Farr | Posted 01.21.2015 | Business
Michael Farr

Using inflation-adjusted numbers, we indexed each component of GDP to 4Q07 levels, beginning with a value of 100 for each. We graphically display the results below, followed by some commentary.

Secret Tapes Suggest Regulators At JPMorgan Were Blocked From Doing Their Jobs

ProPublica | Jake Bernstein | Posted 11.17.2014 | Business

This story originally appeared on ProPublica: As the Federal Reserve Bank of New York moved to beef up its oversight of Wall Street two years ago, ...

Deleveraging Has Not Yet Run Its Course

Michael Farr | Posted 01.06.2015 | Business
Michael Farr

I've argued for some time that the process of deleveraging has yet to run its course. The aggregate level of debt in our economy currently stands at a record high, even though many pundits continue to say that debt levels are much more manageable now as compared to the pre-crisis days.

What Oil Is Telling You

Michael Farr | Posted 12.31.2014 | Business
Michael Farr

The drop in oil (and corresponding drop in energy stocks) is causing much consternation throughout the investment world because it is inconsistent with the narrative articulated by most economists.

Nikkei Soars As Bank Of Japan Announces Unexpected Stimulus Measures

AP | ELAINE KURTENBACH | Posted 12.30.2014 | Business

TOKYO (AP) — Japan's central bank surprised the financial world and pleased investors Friday by intensifying its purchases of government bonds and o...

Fed Ends Stimulus Program With Economy Still On Shaky Ground

The Huffington Post | Mark Gongloff | Posted 11.05.2014 | Business

Janet Yellen and the Federal Reserve just declared the U.S. economy well enough to leave intensive care, though it is not yet the picture of health. ...

Zach Carter

How The Fed Blew Its Most Important Job For Over Three Years

HuffingtonPost.com | Zach Carter | Posted 10.22.2014 | Politics

WASHINGTON -- The Federal Reserve was aware of risky practices at JPMorgan Chase as early as 2008 but failed to follow up for more than three years un...

Should You Sell???

Michael Farr | Posted 12.15.2014 | Business
Michael Farr

The growth of the American and global economies are the underlying drivers for most all equity investments. A clear discipline, dogged research, and dispassionate assessment are an investor's best friends.

The Buyback Binge

Michael Farr | Posted 12.02.2014 | Business
Michael Farr

Remember, markets go down from time to time, and it's normal. Cool heads and steady hands make money over time.

Is The Federal Reserve Printing A Free Lunch?

Terry Burnham, Ph.D. | Posted 11.17.2014 | Business
Terry Burnham, Ph.D.

I continue to believe that this grand Keynesian experiment will end in tears. Furthermore, when it ends badly, future generations will not be able to believe our stupidity.

Another Flash Crash or Market Shutdown?

Michael Farr | Posted 11.11.2014 | Business
Michael Farr

Technology seems to have solved the trade execution issue, so I don't foresee an overwhelming market shutdown. Fidelity now offers an amazing 1 second trade confirmation guarantee.

Loan Me $250,000. Please!

Michael Farr | Posted 11.04.2014 | Money
Michael Farr

I want to buy a house. Would you be willing to loan me $250,000 for 30 years at 4.25 percent? Your answer is crucially important. Before you answer, keep in mind that you will be taxed on the interest you receive.

The Top 3 Percent Of Americans Now Hold 54 Percent Of The Country's Wealth

Reuters | Posted 11.04.2014 | Business

Sept 4 (Reuters) - The gap between the richest Americans and the rest of the nation widened after the Great Recession, a survey by the Federal Reser...

Margins Remain Suspicious

Michael Farr | Posted 10.22.2014 | Business
Michael Farr

So what are the causes for optimism with regard to future earnings power? Well, the most notable are probably the recent sharp decreases in interest rates and gas prices.