Stocks have lost a lot of ground of late. In the last month, the most used stock index, the S&P 500, has dropped over 10 percent. Volatility from one day to the next is sufficient to unnerve even the most cold-blooded investor. What may be still more upsetting, the Federal Reserve (Fed) has promised to constrain credit and … Continue reading Market Prospects Darken
Tag: Inflation
The Federal Reserve Raises Interest Rates
After pursuing an easy money policy for years, the Federal Reserve (Fed) has finally made a change. A recent statement announced four essential moves: The Fed would end its program of adding liquidity to markets in which it directly bought securities –– what policy makers call “quantitative easing.”It has raised the rate on the benchmark federal … Continue reading The Federal Reserve Raises Interest Rates
The Last Great Inflation and What It Says About the Present One
With inflation now firmly in the headlines (and in our lives), a look back at the last experience with this menace may offer needed perspective. Of course, history never repeats exactly, and there is no claim here that it will. Nonetheless, a look back will provide ammunition to counter much of the nonsense appearing in the media … Continue reading The Last Great Inflation and What It Says About the Present One
Who Gains from Inflations?
The Federal Reserve (Fed) has at last acknowledged inflation, and it is taking steps – albeit very preliminary ones – to deal with it. Governments in other countries have admitted possible inflation problems, but most have taken no action. Unless the inflation in the U.S. goes away on its own (highly unlikely at this point), Washington will have … Continue reading Who Gains from Inflations?