“Elevated commodity prices, especially of oil and food, pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and may increase global inflationary pressure.” says the G8 central banking community. At the same time, U.S. Treasury Secretary Henry Paulson said the high oil price “brings the risk that the slowdown

As home and real estate prices fall, home buyers will lose a primary motivation for paying high prices for homes: making money on home price appreciation. If you don’t fall into that category and money is not an object (probably about 1/2 of a percent of home buyers), then you aren’t affected by the market.

Some folks get it and others don’t. We might have a keeper in Barack Obama. The Democratic presidential candidate said today that the best way to lift the sagging dollar is to improve economic fundamentals, rather than manipulating the currency. He acknowledged that the devalued dollar is a symptom of underlying problems rather than a cause

For those of you that need a Federal Reserve talking head to tell you, the economy is “tepid”. Jeffrey Lacker, president of the Federal Reserve Bank of Richmond delivered the message. You probably have a better word for the economy that fits your situation. He also said that inflation remains unacceptably high. Funny, nobody of any

The Federal Bureau of Investigation isn’t wasting time. America needs some fall guys. Who better than lying and scheming financial salesmen? Finally, crooked bankers, financial gurus and investment brokers should be shaking in their boots. The FBI is on the stick and hasn’t been wasting much time. Obviously, the preponderance of evidence is huge or

The U.S. Treasury Department is scared out of its wits regarding the current plight of investment banking institutions. Treasury Secretary Henry Paulson claims that the government must quickly give the Federal Reserve more power to regulate the financial system, saying this year’s financial market turmoil highlighted the need for action. Know this now: we have

Inflation is on the rise around the world, even more so than is being commonly reported by government agencies and central bankers. The finger of blame usually falls on two fronts. “World events cause inflation.” “Politicians cause inflation.” What most world citizens and media pundits alike fail to recognize is that central bankers are a

Wall Street enters the summer season with investors in a sour mood because they don’t want to face reality. For months, every qualified economic expert has pointed to an eventual rise in interest rates by the Federal Reserve. Economic policy makers have been looking at this summer as a prime time for change. Reality was

Three months ago, the FOMC approved the establishment of the Primary Dealer Credit Facility (PDCF). This action was taken pursuant to Section 13(3) of the Federal Reserve Act, which empowers the Board of Governors of the Federal Reserve to authorize a Federal Reserve Bank to lend to a corporation, including a securities firm, in “unusual

The joke of the day is CNN money’s recent article ruminating about the effect of the Federal Reserve’s low-interest rates and the creation of inflation. Low-interest rates for bank have helped the bottom lines of financial institutions. Consumers and investors have experienced little, if any, benefit. According to the article, some think that low interest rates