In its 2009 outlook strategy report, Merrill Lynch is upbeat that consumption can play a bigger role in China’s growth. Not only do China’s consumers have the cash to spend, they argue, but consumption as a percentage of the economy is at a huge secular inflection point. What’s more, China is possibly the only large [...]
HONG KONG (MarketWatch) — Interest rate cuts in the U.S. are keenly watched in
Hong Kong as the currency’s peg to the greenback means we must follow the Federal
Reserve. Typically, each time Ben Bernanke pulls his interest-rate lever, asset
markets receive another shot of adrenalin as cheaper money reaches Hong Kong.
But it looks as if the Fed’s [...]
Here is a “warning” with some substance to it: http://www.ft.com/cms/s/0/e361d344-bc0c-11dd-80e9-0000779fd18c.html?nclick_check=1
Angela Merkel, the German chancellor, turned the tables on her international critics on Wednesday by accusing the US and other governments of making “cheap money” a central tool of their economic management, thus planting the seeds of a similar crisis in five years.
“Excessively cheap money in [...]
So while Greenspan was portraying to the WORLD he was the “SMARTEST MAN on EARTH” he privately did not KNOW MUCH AT ALL!
Testimony from Greenspan, Cox, and Snow includes to following:
1. We were not smart Enough
2. If we knew it would get this bad we would have written Mortgage Regulations
3. Our Math Models [...]
Everything seemed pretty normal at the turn of the century in the housing market 7% mortgages 4 to 5 percent appreciation. Then 911 happened and the Fed (Greenspan) seemed to panic and started lowering the Fed Funds rate. There is usually not a direct correlation between the Fed Rate and mortgage rates.
However as I [...]
By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) — With the economy still suffering from a mild case of recession and the trauma of high energy prices, it’s time for the periodic checkup with Dr. Ben.
The Federal Open Market Committee meets Tuesday to talk about what to do about this sick economy.
The patient is demanding instant relief, but [...]
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