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Showing category "Economy" (Show all posts)

Fed Moves Spark Refi Madness!

Posted by Mike Larson on Saturday, March 21, 2009, In : Economy 

The Federal Reserve has done it now. In poker terms, it’s gone “all in.”

Specifically, the Fed said this week that it will ramp up its purchases of Fannie Mae and Freddie Mac Mortgage Backed Securities (MBS) from $500 billion to a whopping $1.25 TRILLION in the coming months. The Fed is also going to double its purchases of Fannie Mae, Freddie Mac, and Federal Home Loan Bank bonds to $200 billion from $100 billion.

And for the icing on the cake …

The Fed will buy as much as $300 b...


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Eureka! The Banking Industry’s Problems Are Solved!

Posted by Mike Larson on Saturday, March 14, 2009, In : Economy 

 

Who knew it would be so easy? Who knew we could solve the banking industry’s collapse by simply changing how we account for assets. Eureka! Problem solved!

That seems to be the conclusion Wall Street came to earlier this week, judging by the reaction to Fed Chairman Ben Bernanke’s comments at the Council on Foreign Relations on Tuesday. During that speech, Bernanke weighed in on “mark to market” accounting, saying the following:

The ongoing move by those who set accoun...


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