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Many investors think that the Federal Reserve reduces the interest rates and that makes the stock market move higher. But there are two fallacies in this assumption. For one, the Federal Reserve does not set the interest rates, the market does. FED follows. Below we are going to show you a chart of declining interest… Read more Do Low Interest Rates Move Stocks Higher? |
Category: Economy
Articles about the general economy, macro-economic indicators, money supply, FED and government policies.
Credit Crisis: Is The Perfect Storm Coming?
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Robert Prechter discusses what’s backing your dollars In this video clip, taken from Robert Prechter’s interview with The Mind of Money, Prechter and host Douglass Lodmell discuss “real” money vs the FIAT money system, and what is backing your dollars under our current system. Enjoy this 4-minute clip and then watch Prechter’s full 45-minute interview… Read more Credit Crisis: Is The Perfect Storm Coming? |
What moves the stock market?
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The widespread idea is that events around the world direct the financial markets. We are told to believe that the market reacts to the news and people’s mood changes accordingly. When the news are good, people feel good and they buy stocks they say. When the news are bad, people sell stocks according to the… Read more What moves the stock market? |
Deflationary Depression Coming?
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Social psychology precipitates economic depressions Don’t blame Martin Van Buren for America’s first deflationary depression. Social mood rode higher in the saddle than did our 8th President, who only stood 5′ 6″. Elected in 1836, by the time Van Buren assumed office in March 1837 a speculative bubble had burst and a banking crisis was… Read more Deflationary Depression Coming? |
Can The Federal Reserve Help Us Today
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J.P. Morgan saved the banking system back in 1907. Then the Federal Reserve was created to protect the system in 1913. While the FED was at the helm, we had the Great Depression and the inflationary period of 70s. If we look at the stock market charts, it looks like market volatility has actually increased… Read more Can The Federal Reserve Help Us Today |
European Bank Stress Tests
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The European Banking Authority announced Friday that 8 banks had failed their stress tests and 16 more had narrowly passed. But the results drew much criticism from analysts, who said that the stress test is not strict enough. Indeed, this is something that European Financial Forecast readers have known since the first stress test last… Read more European Bank Stress Tests |
Money in the Bank
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Elliott Wave International’s free report “Discover the Top 100 Safest U.S. Banks” explains the true risk that you may face when a bank fails. Bank failures still dominate headlines as the number of failing banks continues at an alarming pace in 2011. The odds are that you’ve seen at least one bank failure in your… Read more Money in the Bank |
Quantitative Easing and Inflation
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FED is printing money. They call it “Quantitative Easing” aka QE1, QE2 and so on. Many economists think this expansion of FED balance sheet will create inflation in the near future. But they were saying that back in 2009 too. And two years later we still do not have the promised inflation. Why? |
Can The FED Save The U.S. Economy?
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Bernanke is at it again. His printing press is at work to create another 600 billion dollars. Bernanke declared the Economy needs it. The rationale is that if the government has more money coming from the FED, they can spend it and this Keynesian spending can jump start the economy. The assumption is that this… Read more Can The FED Save The U.S. Economy? |
Understanding the Federal Reserve Bank
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The world’s foremost Elliott wave expert Robert Prechter goes “behind the scenes” on the Federal Reserve Bank November 25, 2010 By Elliott Wave International The ongoing financial crisis has made the central bank’s decisions — interest rates, quantitative easing (QE2), monetary stimulus, etc. – a permanent fixture on six-o’clock news. Yet many of us don’t… Read more Understanding the Federal Reserve Bank |