Bernanke

This post is a follow up and further elaboration showing the current and historical values for some key interest rates.These interest rates are for short term (30 day) commercial paper that is typically issued by corporations to “raise needed cash for current transactions”.A key in reading these rates is to recognize that the AA non-financial is more highly rated than A2/P2 non-financial and t

Ehhh. My bike likes a liquidity spike even more than it likes Ike. Well, this is one of those moments when a picture is worth a thousand words. Let's just say Ben Bernanke took a commanding lead over his Monetarist Monkey friend at Treasury for the coveted "Ponzirelli" Award. I think if I were Ron Gettelmember over at the UAW, I'd walk out tomorrow and demand a tripling of wages starti

Federal Reserve chairman Ben "Printing Press" Bernanke and his fellows around the FOMC oak table may appear being behind the curve since the onset of the debt crisis in August 2007. Its erratic rate policy rather followed loud calls from Wall Street pundits, establishing such nicknames like Nanny Benny or even Ben Dover.But one has to wonder whether the Fed has really been all that clueless about

Federal Reserve Chairman Ben Bernanke urged using more taxpayer money for new efforts to prevent home foreclosures, saying the private sector is incapable of coping with the crisis on its own. Bernanke outlined four possible options, including buying delinquent mortgages and providing bigger incentives for refinancing loans. He called for addressing the apparent market failure where lenders aren't

"Ben Bernanke: Fresh Attack on Mortgage Rates" Fed Chairman Ben Bernanke on Monday opened the door to another unconventional measure to lower mortgage rates: buying long-term Treasury bonds. In a speech in Texas Monday, the Fed chief said: Although conventional interest rate policy is constrained by the fact that nominal interest rates cannot fall below zero, the second arrow in the

The video posted below is absolutely stunning.In this video, Congressman Ron Paul openly confronts Federal Reserve chairman Ben Bernanke about plans to replace the dollar with a new global currency.This confrontation took place during a House Financial Services Committee meeting this week:

Jeannine Aversa, The Associated Press November 18, 2008 WASHINGTON — Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke waged a stout defence on Capitol Hill Tuesday of their management of a $700-billion (U.S.) financial bailout just one week after the administration abandoned the original strategy behind the rescue. Focusing the program on infusing billions into banks [.

This post is a follow up and further elaboration showing the current and historical values for some key interest rates.These interest rates are for short term (30 day) commercial paper that is typically issued by corporations to “raise needed cash for current transactions”.A key in reading these rates is to recognize that the AA non-financial is more highly rated than A2/P2 non-financial and t

This post is a follow up and further elaboration showing the current and historical values for some key interest rates.These interest rates are for short term (30 day) commercial paper that is typically issued by corporations to “raise needed cash for current transactions”.A key in reading these rates is to recognize that the AA non-financial is more highly rated than A2/P2 non-financial and t

By John Tamny RealClearMarkets Writing about former Fed Chairman Arthur Burns in his 1998 book, Nixon's Economy, economic historian Allen Matusow noted that... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Yesterday, Federal Reserve Chairman Ben Bernanke endorsed the possibility of another tax rebate sometime in 2009. Again, the point of this rebate is to stimulate the economy by giving cash to the people to start spending. According to the White House, they are high on the idea of another stimulus package in addition to the [...] Related posts:2009 Tax Stimulus Rebate a Reality? I have a little u

-Apparently $700 billion was not enough - Federal Reserve Chairman Ben Bernanke told Congress on Monday that another Wall Street bailout package may be needed.-Today Deutsche Bank said that we could be facing the worst financial crisis since the Great Depression.The Telegraph is being more pessimistic - they say that this crisis may make 1929 look a "walk in the park".Meanwhile the Washington Post

(New York) – Langkah-langkah yang diambil pemerintah AS untuk menstabilkan pasar finansial dan membebaskan krisis kredit yang melanda nampaknya tidak akan mengarah menuju pantulan perekonomian yang cepat dan tepat, menurut Kepala Bank Sentral Ben Bernanke.“Stabilisasi pasar keuangan adalah langkah pertama yang kritis, namun bahkan jika mereka menstabilkan seperti yang kita harapkan, pemulihan

Bernanke stated that the central bank may discard its long-standing stance on interfering with assets bubbles. Regulatory authorities may need to anticipate and restrain asset price bubbles, such as the problems that occurred in the housing sector that now pose a serious threat to the entire economy. Policy makers are quickly jumping to more regulations against "excessive leverage," and are eval

WHAT THEY SAID… May you live in interesting times Anonim —–oOo—– ‘Semoga kau hidup di masa yang menarik‘. Begitu kira-kira arti dari kutipan di atas. Kutipan di atas seringkali saya baca, tetapi entah di mana. Entah siapa juga yang pertama kali mengucapkan kalimat tersebut. Ketika saya periksa di Wikipedia, ada teori yang mengatakan bahwa sebenarnya kalim

In a speech to the National Association for Business Economics in Washington today Federal Reserve Chairman Ben Bernanke signalled the Fed was ready to cut interest rates in the light of worsening conditions in the credit markets, with the consequent negative impact on U.S. economic activity. He said “In light of these developments, the Federal Reserve will need to consider whether the current s

Federal Reserve Chairman Ben Bernanke warned that the financial market is in fragile condition and without a bailout package, jobs will be lost, GDP will contract and more homes will be foreclosed. Bernanke urged Congress to act swiftly to put in place a $700 billion financial system bailout, warning delay would put the economy at risk. Lawmakers have vowed to move without delay, but also are insi

Where does Ben Benanke get this $700 billion from? Ron Paul thinks he's creating credit out of thin air. Nobody has said where this money is coming from. George Bush calls the whole plan "a sucker", Henry Paulson gets down on bended knee to plead for the plan to go through Congress after a shouting match in the White House. However, nobody tells us where this money is coming from.The Federal Reser

Now, let us see the facts today:$ 512 Billions – Already written off by banks and brokers$ 59 Billions – Given to Bear Stearns and JP Morgan combine$ 200 Billions – given recently to Fannie Mae and Freddie Mac$ 85 Billions – given to AIG as capital$ 2,400 Billions – Needed by Fannie Mae and Freddie Mae$ 1,300 Billions – Needed by AIG for future provisions$ 700 Billions – Requested by

This post is a follow up and further elaboration on last week’s grim Federal Reserve chart showing the current and historical values for some key interest rates.I’m going to add this to the rotation of recurring posts as I think it very clearly captures the trouble that the central bank has had in controlling interest rates since mid-2007.These interest rates are for short term (30 day) commer

Bernanke, joining Treasury Henry Paulson, is prompting lawmakers to quickly pass a rescue package in order to stabilize the market. Today, Bernanke issued a warning that the U.S. economy will shrink if markets do not begin to function normally. He stated that losses will soon go well beyond Wall Street and begin to effect main street. Bernanke told the Senate Banking Commitee that, he believes

First off, the problem with the bailout in general is that there is not a lack of buyers for these assets. There is a lack of buyers willing to pay more than the securities are worth. That is a key distinction to make because if the government is going to bailout the financial firms they will be paying more than the market. This emphasizes further that Bernanke has the intention of paying more

To my Readers:  An interesting article re: the financial markets from Billy Manders - Thought you would enjoy this!  Happy Reading!Via Billy Manders:This is a very interesting read just made public. This is the speech Chairman Bernanke will give before the Committee on Banking, Housing and Urban Affairs... The entire speech: Chairman Ben S. Bernanke U.S. financial markets Before th

I was thinking about something that former Lehman Brothers CEO, Richard Fuld said at the Lehman Brothers annual meeting in April. He was still confident that he could sail his sinking boat back to the harbor. “I will hurt the shorts, and that is my goal,” said Fuld. After hearing that, the only thing that [...]

Thank goodness that last week is over with. What with one major investment bank, Lehman Brothers, disappearing (or two, if you consider the merger between Bank of America and Merrill Lynch, for $50 Billion dollars, arranged over a weekend!) along with a thousand-point roller coaster ride in the DOW, causing other world indexes to [...]

Paulson, Bernanke Expand U.S. Power to Rescue Markets (Update4) By Rebecca Christie and John Brinsley The U.S. government moved to cleanse banks of troubled assets and halt an exodus of investors from money markets in the biggest expansion of federal power over the financial system since the Great Depression. “We’re talking hundreds of billions,” Treasury Secretary [...]

By Jeannine Aversa, AP Economics WriterBernanke says financial crisis taking toll on economy, inflation outlook uncertainJACKSON, Wyo. (AP) -- Federal Reserve Chairman Ben Bernanke said Friday the financial crisis that has pounded the country -- coupled with higher inflation -- is taking a toll on the economy and poses a major challenge to Fed policymakers as they try to restore stability."Althoug

Bernanke admits that inflation is a tax! Also, be sure to digg this story. Click here.

Federal Reserve Chairman Ben Bernanke expressed his concern Tuesday about the potential for high prices and about the downsides risks to growth. He also reiterated concerns related to the weakness in the financial markets and stressed that tighter credit conditions till pose significant downside risks. With the economy in between the two positions the Federal Reserve is not expected to raise or

WASHINGTON - THE US economy is growing a bit faster than expected and could avert recession, Federal Reserve chairman Ben Bernanke indicated on Tuesday, while citing a 'critical' need to keep inflation expectations in check.Mr Bernanke also said a 'top priority' of the central bank would be to keep financial markets functioning, and that the Fed was paying close attention to the troubles of mortga

At a Full Committee Hearing (Systemic Risk and the Financial Markets) of the House Committee on Financial Services, Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke urged Congress to consolidate more power with a single regulator for the oversight of investment banks. This is the first hearing on this subject, and Congress has plans to continue the series of

There are many conflicting views of how Mr. Bernanke should have handled the Fed after the departure of the true overlord, Alan Greenspan. Reducing interest rates to soften the landing of the real estate crash - did he go overboard? was it enough? I’ll leave the debate to the armchair economists, but I do know [...]

For the past few years American policy makers have been talking of a strong dollar while doing nothing to prevent the fall of the greenback to stimulate exports and reduce the national debt. You would think the markets would therefore be less and less impressed by the bull from New York and Washington. And yet over [...]

WASHINGTON - DESPITE a recent spike in the unemployment rate, the danger that the US economy has fallen into a 'substantial downturn' appears to have waned, Federal Reserve Chairman Ben Bernanke said on Monday. Addressing a Fed conference in Chatham, Massachusetts, on Monday night, Mr Bernanke said a government report last week showing the unemployment rate rising from 5 per cent in April to 5.5 p

* Government bonds drop on Bernanke inflation warning * U.S. dollar hits three-month high against yen * Asia stocks slip with eyes on inflation, financials By Kevin Plumberg HONG KONG, June 10... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Mortgage rates are a big deal when you're buying a home.  With even the slighest uptick in rates, 30 years of mortgage payments can get substantially more expensive and one of the most substantial threats to mortgage rates is an economic event called inflation.  Inflation's influence on mortgage rates is so large that markets can get jarred on just the mention of it and that'

Mortgage rates are a big deal when you're buying a home. Witheventhe slighest uptick in rates, 30 years of mortgage payments can get substantially more expensive and one of the most substantial threats to mortgage rates is an economic event called inflation. Inflation's influence on mortgage rates is so large that markets can get jarred on just the mention of it and that's exactly what happened

By Jeannine Aversa, AP Economics Writer Bernanke doesn't see repeat of `70s style spiraling prices, wages WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke said Wednesday he does not believe the United States will experience the out-of-control prices seen with 1970s oil shocks.His assessment came in a speech delivered Wednesday to graduating students at Harvard University, where he earned

“To my knowledge, Bernanke has never before stressed the dollar’s decline, the inflationary dangers it poses and his intention to guard against these as much as he did yesterday. The immediate reaction was for the dollar to rally.” — Dominic Frisby Blogger’s note: Dominic Frisby, an editor at our British [...]

Ben Bernanke’s unusual comments on Tuesday when linking a weakening dollar with inflation threw financial markets into a spin and sparked a mini exodus of dollar short position from the currency markets. The euro fell by 2 cents against the greenback in the matter of a couple of hours. Currency markets have since stabilised and it remains to be seen whether Bernanke’s verbal intervention will

Fed chairman Ben Bernanke talked up the dollar a couple of pips yesterday. But beware a false sense of security. The bullish crowd from Wall Street would have us believe the dollar’s fall is over and that stabilization at two per cent interest rates will spark a rally after eight months of falling rates. It [...]

Bernanke indicated that he is done cutting interest rates for the time being and is now watching the dollar for inflationary concerns. The dollar has declined nearly 16 percent against the euro over the past year. The Fed is now putting its foot down and officially stating that they are no longer going to let the dollar fall further in value against the euro.

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In a prepared talk Tuesday morning, Federal Reserve Chairman Bernanke signaled further interest rate cuts by the Federal Reserve are unlikely because of growing concerns about inflation and the weak dollar. Specifically, he said that the Federal Reserves powerful doses of rate reductions that started last September along with the  $168 billion stimulus package, including [...]

Fed Chairman Ben Bernanke commented on the economy today. Outlook: "Broadly speaking, the functioning of financial markets has improved of late, but conditions remain strained and some key funding and securitization markets have shown only tentative signs of recovery. Some borrowers, such as highly-rated corporations, retain good access to credit, but credit conditions generally remain restrict

“There has not been a chairman of the Federal Reserve Board with sound monetary instincts since Paul Volcker resigned in 1987.” — Lord William Rees-Mogg by Lord William Rees-Mogg Baltimore — (TFN): The American electoral system has never been designed to protect sound finance, and it has become more dangerous as the federal government and the Federal [...]

      Financial market turmoil underscores the need for “generous” capital cushions, and banks need to actively raise money as needed, U.S. Federal Reserve Chairman Ben Bernanke said on Thursday.    ”I strongly urge financial institutions to remain proactive in their capital-raising efforts,” Bernanke said in prepared remarks at a conference on bank structure and c

MIDLAND (Texas) - United States Federal Reserve Chairman Ben Bernanke said the credit crisis was not over, even as his colleagues revealed growing concerns about inflation that could signal a pause in interest rate cuts. 'Conditions in financial markets are still far from normal,' Mr Bernanke said on Tuesday. 'Ultimately, market participants themselves must address the fundamental sources of finan

This is what Bernanke said at the Columbia Business School’s 32nd Annual Dinner in New York: Chairman Ben S. Bernanke At the Columbia Business School’s 32nd Annual Dinner, New York, New York May 5, 2008 Mortgage Delinquencies and Foreclosures President Bollinger, Dean Hubbard, Co-Chairman Kravis, and distinguished guests, I am very pleased to be here and especially honored to receive [...]

"Bernanke, in a speech in New York yesterday, also reiterated his call for lenders to forgive portions of mortgages for some struggling homeowners. He said proposals should be "tightly targeted" at borrowers at greatest risk of losing their properties, and avoid providing an incentive for defaults."

 Ben S. Bernanke, the chairman of the Federal Reserve, urged Congress on Monday to allow federal agencies more leeway in overseeing the ailing mortgage industry, emphasizing that the causes of the current foreclosure crisis were more difficult to address than those in the past.

Federal Reserve Chair Ben Bernanke outlined some of his reasons for government intervention in the housing bust in a speech at Columbia Business School, arguing that steep price declines and foreclosures carry a high risk of imperiling the overall economy. From a CNNMoney.com story:Foreclosure filings of all kinds - delinquency notices, auctions sale notices and bank repossessions - were up 112% during the first three months of 2008 compared with the same period a year ago. Community advocates and policy makers are worried that the problem will worsen as the interest rates on as many as 1.8 million mortgages reset this year."High rates of delinquency and foreclosure can have substantial spillover effects on the housing market, the financial markets, and the broader economy," concluded Ber

“At this point, Ben Bernanke has to feel like Barney Fife. Remember how on the Andy Griffith Show, Andy only gave Barney one bullet and he had to keep it in his pocket? Mr. Bernanke has to feel like he is running out of bullets and needs [...]

-- UPDATED --Fed chairman Ben Bernanke may be a bit unfocused at the runnning 2-day FOMC meeting. The Wall Street Journal, for the first 95 years a staunch supporter of every Fed move, walks him to the gang plank. After being equalled to an alcoholic desiring ever more liquidity and given the advice to join Central Bankers Anonymous by an anonymous writer on Monday the Wall Street Journal has stepped up its attack on Tuesday. Fed expert Greg Ip thrusts another knife into Bernanke's direction, writing,The Federal Reserve's rescue of Bear Stearns Cos. will come to be seen as its "worst policy mistake in a generation," a former top Fed staffer said.The episode will be seen as comparable to "the great contraction" of the 1930s and "the great inflation" of the 1970s, Vincent Reinhart said Mond

Business Week Chief Economist Michael Mandel argues that Fed Chief Bernanke should continue cutting rates until the financial markets have stabilized:We live in a boom and bust world—and it’s not the Fed’s fault. As we wait to see what the Fed does on Wednesday, one thing is clear to me: Bernanke and his crew need to keep cutting rates until the economy and the financial markets stabilize, and not worry about the naysayers. Since the middle of the 1990s, I’ve followed a very consistent theme in my writings. I’ve argued that we live in a high-volatility, high-growth world. High-risk, high-return: The two things go together. In the second half of the 1990s, we had the Information Revolution, the Internet, and the tech boom. Then we had the tech bust. All told, the combination o

Yes, as you’ve noticed, I’ve been away a bit. You guys didn’t get too lonely did ya? I’m OK, I‘ve just been busy, busy, busy...but I’m back now and here’s the scoop: The economy is in bad shape. I hope that bit of top secret info didn’t cause you guys too much shock, they(the Feds, etc.) have pulled the wool over our sweet little sheep eyes again. I remember hearing the Federal Reserve Chairman, Ben Bernanke, say in the latter part of last year that we were not in for a recession, but I knew from the looks of things - jobs, gas, housing - that oh yes, we were in a recession in 2007 and certainly now in 2008 - the Feds always have a way of hiding the truth. It’s called lying, oh my, such a dirty word. You mean the federal government, our fine and distingished statesmen lie

Overseers of the U.S. and international financial system need to quickly put reforms in place to restore confidence in markets disrupted by a global credit crisis, Federal Reserve Chairman Ben Bernanke said on Thursday.The current market unrest complicates the process of making changes aimed at erecting a firewall against future crises, Bernanke told the World [...]

April 11, ReutersRICHMOND, Virginia - Overseers of the U.S. and international financial system need to quickly put reforms in place to restore confidence in markets disrupted by a global credit crisis, Federal Reserve Chairman Ben Bernanke said on Thursday.The current market unrest complicates the process of making changes aimed at erecting a firewall against future crises, Bernanke told the World Affairs Council, but swift action could soothe jittery financial markets."We do not have the luxury of waiting for markets to stabilize before we think about the future," he said. "Indeed, many of the necessary changes that have been identified -- including increasing transparency, improving risk management, and attaining better coordination among regulators -- could provide important support to

Bernanke is pushing for more government involvement in order to strengthen financial markets. He said that regulators should insure that financial institutions hold higher liquidity cushions in order to lower their exposure to market events.

09:44 04/09 (CEP News) – In a speech where he made no comment about the economy or monetary policy, Federal Reserve Chairman Ben Bernanke said more U.S. states should teach financial literacy.Bernanke said the problems in the mortgage market highlight the importance of financial literacy."In light of the problems that have arisen in the subprime mortgage market, we are reminded of how critically important it is for individuals to become financially literate at an early age," Bernanke said in a prepared text।Full Article @

According the the Wall Street Journal Economics Blog Fed chairman Ben Bernanke, in a speech today, stated the importance of financial literacy classes in high school. A survey given to high school seniors had only 48.3% of the students correctly answering questions about personal finance and economics. This is down from 52.4% in a similar survey given in 2006. The recent survey scored the lowest of six surveys conducted. Bernanke stated that only eight states require a personal finance class for graduation and that more states should consider it a requirement.Imagine more people required to take a personal finance class? There might not be a need for all of the personal finance blogs out there! I could be sitting here blogging about the weather instead.In all seriousness I think Bern

According the the Wall Street Journal Economics Blog Fed chairman Ben Bernanke, in a speech today, stated the importance of financial literacy classes in high school. A survey given to high school seniors had only 48.3% of the students correctly answering questions about personal finance and economics. This is down from 52.4% in [...]

Economic NewsUSD Yesterday, the Greenback spent most of the trading day with bullish momentum against a majority of its currency pairs and crosses. This despite a day of disappointment from US economic news. As the financial world awaited the results of the Federal Open Market Committee (FOMC) Meeting Minutes, the assumption amongst investors was that the summary of the news would be so bad for the US economic outlook, that the dollar would suffer big losses. Though the meeting minutes were released and gave no real positive outlook for future economic progress, a sense of urgency still exists amongst investors regarding a slowdown in growth. Still though it is unknown what the real catalyst behind the bullishness has been.One of the key points of the FOMC Meetings was the discussion of th

The fed chairman Ben Bernanke may have thwarted a national depression which is currently being experienced only as a recession. Financial markets are near collapse, housing value is dropping, housing defaults are up, jobs are down and people are scared. It is possible that Ben’s policy may have bought the country more time. The concept of putting government money into the system is not something new. It is the understanding that Bernanke came to with the economy and the different methods he used to fuse money into the system hitting those sectors that were worse off. This has led to a slowing of economic decline. Putting Money into the System: The government has infused money into the financial system by allowing protections for homeowners and support for large systems. This infusion of

By Daniel Kruger and Sandra HernandezApril 7, BloombergFor the first time since December, the bond market is closing the credibility gap with Ben S. Bernanke and signaling its agreement with the Federal Reserve chairman that an economic collapse has been averted and that interest rates are bottoming.Treasury yields rose 0.33 percentage point on average through April 4 from this year's low of 2.49 percent on March 17, according to Merrill Lynch & Co. indexes. The increase is the first since December, when the Fed cut its target rate for overnight loans between banks and said lower borrowing costs ``should help promote moderate growth.''The Fed's unprecedented support for JPMorgan Chase & Co.'s takeover of New York-based Bear Stearns Cos. on March 16 is restoring confidence in Bernan

I never wanted Ron Paul to be President, but there were many times I admired him for taking on certain issues that others have been afraid to tackle.The collusion of big business and government has been an issue that has been tearing this country down the last couple of decades.

CURRENCY TRADING SUMMARYU.S. Dollar Trading (USD) paired much of it recent gains as Fed Chairman Bernanke noted further declines in the world’s largest economy would continue to contract in the first half of 2008, conceding for the first time the likelihood of recession. In other news, ADP employment reports for the month of March grew by 8k jobs well above forecasts of -48k (Previous: -23k), prompting traders to foresee a better Non Farm Payrolls release come Friday. However any further gains were limited following Bernanke’s dovish comments where “it appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly." In U.S. share markets the NASDAQ was up by 15.97 points (+0.18%) whilst the Dow Jones fell by

Bernanke Says Fed Acted to Prevent Collapse of Bear Stearns to Protect Financial System By Martin Crutsinger, AP Economics Writer WASHINGTON (AP) — The Federal Reserve’s unprecedented actions to prevent the collapse of Bear Stearns were taken to preserve the “integrity and viability of the American financial system” and did not represent any kind of bailout, Fed [...]

By Sue Kirchhoff, USA TODAYWASHINGTON — Federal Reserve Chairman Ben Bernanke said Wednesday that the economy could fall into recession, as housing and financial markets remain distressed despite dramatic Fed interest rate cuts and emergency lending. "It now appears likely that (the economy) will not grow much, if at all, over the first half of 2008 and could even contract slightly," Bernanke told the Joint Economic Committee. He expects activity to pick up into 2009 but warned that major risks remain. "We are fighting against the wind," Bernanke said. Bernanke staunchly defended the Fed's decision last month to broker JPMorgan Chase's (JPM) takeover of investment bank Bear Stearns, (BSC) including approval of a loan backed by $30 billion of Bear Stearns assets. MORTGAGE DEMAND DROPS: In

By Sue Kirchhoff, USA TODAYWASHINGTON — Federal Reserve Chairman Ben Bernanke said Wednesday that the economy could fall into recession, as housing and financial markets remain distressed despite dramatic Fed interest rate cuts and emergency lending. "It now appears likely that (the economy) will not grow much, if at all, over the first half of 2008 and could even contract slightly," Bernanke told the Joint Economic Committee. He expects activity to pick up into 2009 but warned that major risks remain. "We are fighting against the wind," Bernanke said. Bernanke staunchly defended the Fed's decision last month to broker JPMorgan Chase's (JPM) takeover of investment bank Bear Stearns, (BSC) including approval of a loan backed by $30 billion of Bear Stearns assets. MORTGAGE DEMAND DROPS: In

U.S. stocks dropped for the first time in three days, after Ben Bernanke issued a warning that the nation may be headed towards a recession. This is the first time that he has officially acknowledged that an U.S. recession is possible due to credit crisis, declines in employment, and significantly lower consumer spending.

IF I were still blogging, I would post a brief missive about Ben Bernanke and how he got as close as any Fed chairman would ever get to calling a recession. While he didn't use the "R" word to characterise the present state of the economy, he did note today in his prepared remarks before the Joint Economic Committee that we could see the economy contract during the 1st half of this year. Yes, the Fed chairman who told us Spring of '07 that housing prices would continue rise for the foreseeable future; yes, the Ben Shalom Bernanke who told us last summer that subprime would be contained; yes, our Gentle Ben who told us earlier this year that the economy would slow but would continue to grow in '08 - conceded, with the President far away in Eastern Europe and the Treasury Secretary in Chin

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Fed Chairman Ben Bernanke has finally dipped his toes into the waters of reality, admitting that real gross domestic product "could even contract slightly." He also discussed revealed his thoughts on managing inflation versus propping up the sicker parts of the economy, including rescuing Bear Stearns from an almost-certain wipe-out. From an L.A. Times story:Federal Reserve Chairman Ben S. Bernanke warned this morning that threats to the economy are far from over, with unemployment on the rise, prices for food and fuel growing, and real incomes on the wane...The Fed chairman said he considered inflation to be a secondary threat to the economy, citing a leveling off of commodities prices in the futures markets, especially for oil. And he said that he expects the economy to be on the rebou

Federal Reserve Chairman Ben S. Bernanke acknowledged for the first time that a U.S. recession is possible because homebuilding, unemployment and consumer spending will deteriorate.“It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly,” Bernanke said in testimony [...]

Today Ben Bernake, the Federal Reserve Chairman, warned Congress that the economy may shrink over the first half of this year, which would signal the start of a recession. Yet, he didn’t offer assurances of further interest rate cuts. In prepared testimony to Congress’ Joint Economic Committee, Bernanke didn’t use the word recession. But it’s the [...]

The Chairman seems to become more pessimistic about the US economy than before. He is now speaking in the testimony in Congress. He also defended the bail-out for Bear Stearns.From Bloomberg:Federal Reserve Chairman Ben S. Bernanke acknowledged for the first time that the economy may contract as homebuilding weakens further, unemployment rises and consumer spending slumps."It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly,'' Bernanke said in testimony to Congress's Joint Economic Committee today. He also told lawmakers the Fed's agreement to provide an emergency loan to Bear Stearns Cos. followed a March 13 warning by the company that it "would have to file for Chapter 11 bankruptcy the next

In testimony to Congress' Joint Economic Committee today, Federal Reserve Chairman Ben Bernanke said that "It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly." Scott Lanman, Bloomberg News, on Bernanke's testimony. While the Fed expects the economy to return to its long- term growth pace in 2009, "in

I tried watching this on TV but watching the blowhards in Congress incessantly drone on in sound bites like "rainman" just is too much for a human to be expected to bear. I can't be expected to "take one for the team" every time these guys decide to put on the dog and pony show. That being said, I decided to read in quiet... Here is the outlook: "Overall, the near-term economic outlook has weakened relative to the projections released by the Federal Open Market Committee (FOMC) at the end... Continued at Todd Sullivan's ValuePlays

En declaraciones a la Comisión Económica Conjunta de las cámaras del Congreso, Bernanke no pronunció la palabra recesión. Pero es la primera vez que sugiere esa posibilidad, dado el trío de crisis, de vivienda, crediticia y financiera, que golpea al país. Compártelo Para Ver la Fuente Original Click Enrique García [...]

March 27 (Bloomberg) — Marjorie Killian is eager to buy a home in San Diego and is pre-approved for a mortgage. She won’t make an offer on a property until she can get a fixed rate of 5.5 percent, she said. Killian is just the kind of buyer that Federal Reserve Chairman Ben Bernanke needs to [...]

JP Morgan (NYSE: JPM) revised its $2 offer for Bear Stearns (NYSE: BSC) up to $10. Bear now trades at $11.40. Someone may think that JPM or another entity may... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

This from Bloomberg.com: Bernanke lives in Washington’s Capitol Hill area in a four- bedroom, 2,600-square-foot house he bought new in May 2004 for $839,000. Almost four years later, it may not be worth any more, according to real estate records and local agents. Bernanke’s timing wasn’t the best — values in the area peaked a year later [...]

Jim Rogers said Ben Bernanke is "an idiot". And he continues to be very critical of the Fed's policy making yesterday on Bloomberg, saying the Bernanke and his colleagues know nothing about... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Don’t get me wrong, I’m all for having a strong economy and the United States maintaining a global economic advantage. However, one thing that I am opposed to more than anything is the government stepping in and using tax-payer funds to help support companies that seem to be going under. Furthermore, I don’t think that [...]

This morning, Bloomberg interviewed commodities investor Jim Rogers from Singapore (Bloomberg video link here). The chairman of Rogers Holdings spoke with Bloomberg’s Rishaad Salamat over the telephone about the U.S. Federal Reserve’s actions to calm financial markets, JPMorgan Chase’s buyout of Bear Stearns for $240 million, and his investment strategy. While I talked [...]

March 5 (Bloomberg) -- Treasury Secretary Henry Paulson may need to revise his strategy for stemming record U.S. home foreclosures after Federal Reserve Chairman Ben S. Bernanke urged lenders to forgive portions of some loans.(This is one of our major negotiation requests -asking for principle reduction- to get you a payment you can afford!)Bernanke's call, in a speech yesterday to bankers in Orlando, Florida, went beyond a Paulson-backed plan that focuses on renegotiating interest rates. With his remarks, the Fed chief joined the heads of the Office of Thrift Supervision and Federal Deposit Insurance Corp. and congressional Democrats in proposing stronger actions than Paulson to alleviate the worst housing recession in a quarter century. You can read the whole article here

Dark clouds hung over the US dollar as the currency consolidated losses against most of the major currencies. Indeed, the euro held near the 1.52 level for much of the day after hitting an all-time... More at: http//moneymakinglounge.blogspot.com

In his strongest words to date by far on the housing and mortgage crisis, Fed Chief Bernanke gave banks two stark choices today: be willing to forgive portions of mortgage balances for borrowers underwater or face increasing "jingle mail" as homeowners walk away from properties and mail in their keys rather than continue paying mortgage payments. From the L.A. Times:Federal Reserve Chairman Ben S. Bernanke said today that the nation's banks must be ready to go beyond stretching out interest payments or trimming rates and write down the principal of some troubled mortgages in order to avoid widespread foreclosures and break the steep dive in housing prices. Speaking to a banking conference in Florida, where house prices have tumbled further than in almost any other state but California,

Here's an excerpt from Federal Reserve Chairman Ben Bernanke's speech on 'Reducing Preventable Mortgage Foreclosures' at the Independent Community Bankers of America Annual Convention, Orlando, Florida. In cases where refinancing is not possible, the next-best solution may often be some type of loss-mitigation arrangement between the lender and the distressed borrower. Indeed, the Federal

Bernanke urged lenders to forgive homeowners who are at the risk of defaulting on portions of their mortgages. Poised with the worst housing market in a quarter of a century, the Federal Reserve noted that housing conditions have too great of risk on the economy then monetary policy will be able to deter. In a report to Congress, Bernanke is asking lenders to work out mortgage terms and defer payments for those homes falling below their mortgage balances.

WASHINGTON - Federal Reserve Chairman Ben Bernanke said on Thursday the United States was not headed toward 1970s-style 'stagflation' but acknowledged inflation could complicate the central bank's... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

WASHINGTON - Federal Reserve Chairman Ben Bernanke on Wednesday signaled a readiness to cut interest rates again to prevent further damage to the weak US economy, even as he took note of rising... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Federal Reserve Chairman Ben Bernanke noted that the U.S. central bank is prepared to continue to lower interest rates as economic conditions worsen despite high inflation. The announcement comes after several bad reports from the government indicating weaker economic conditions. Durable good orders for January dropped 5.3 percent as companies began to significantly cut back on spending. Also new homes sales continue to slide with new home sales at the lowest level since February 1995. The Fed has stated that is more concerned with financial stability and growth over the rising costs of inflation.

If you think the markets are screwed up, wrapped in fears of recession and wondering whether they should buy or sell, you are not alone. Why? How can they expect to know what to do when Big Ben can't even...

Helicopter Ben seems more than a bit dour on the prospects for the economy:"The outlook for the economy has worsened in recent months, and the downside risks to growth have increased," Bernanke said. "To date, the largest economic effects of the financial turmoil appear to have been on the housing market, which, as you know, has deteriorated significantly over the past two years or so." Bernanke also said that the "virtual shutdown" of the market for subprime mortgages — given to people with blemished credit histories or low incomes — and a reluctance by skittish lenders to make "jumbo" home loans exceeding $417,000 have aggravated problems in the housing market.Unsold homes have piled up and foreclosures have climbed to record highs. "Further cuts in homebuilding and in related activi