The Impact of Default

  Greece’s sovereign debt was downgraded to CCC by Standard & Poor’s on Monday, making it the worst credit rating in Europe and the worst in the developed world. Yet, when it comes to credit downgrades and talks of default, the country the entire world is watching is right here, in the AAA rated never-missed-an-interest-paymentContinue reading “The Impact of Default”

What is the Fed Thinking? When will rates rise?

The recent decline in rates is built on the view that the softer economic outlook will keep the Fed from increasing interest rates until at least the 1st Q of 2012. The Fed is unlikely to increase rates with little inflationary fears now, but does that in itself justify present low interest rates? The recentContinue reading “What is the Fed Thinking? When will rates rise?”

US determined to weaken the dollar?

For U.S. Treasury Secretary Timothy F. Geithner, a weaker dollar may now be in the national interest. The dollar has dropped more than 7 percent since Aug. 27, when Chairman Ben S. Bernanke signaled the Federal Reserve is prepared to ease monetary policy. Where once such a decline may have been met with resistance fromContinue reading “US determined to weaken the dollar?”

Fed chairman says large banks must be shut down if they threaten financial system

WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system. “If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved,” Bernanke said Thursday while testifyingContinue reading “Fed chairman says large banks must be shut down if they threaten financial system”

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