Federal Reserve

Why Another Rate Cut Could Do More Harm Than Good

The Economy

It’s clear that the root cause of the financial difficulties that we’re facing in the United States is not related to credit being too expensive. It’s quite the opposite in fact – credit is cheap right now but many banks are actually cutting back on lending. So what gives? Why are we sliding into a [...]

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Fed Cuts Rates to 1%

The Economy

Many of you may have heard by now that the Federal Reserve cut their key fed-funds rate to 1%, bringing it in line with the lowest level that it’s ever been at. Interestingly enough the last time that the rate was at 1% was within this decade – from June of 2003 until June of [...]

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When Will The Bailouts End?

Miscellaneous

Maybe it’s just me, but these bailouts seem to be happening more and more frequently these days. Six months ago it was Bear Stearns. Just two weeks ago we bailed out Fannie Mae and Freddie Mac. Now, as you’ve undoubtedly heard, the U.S. government has taken it upon itself to bail out American International Group, [...]

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Finally! No New Rate Cut!

Personal Finance

Ben Bernanke and the Fed decided today to leave their federal funds rate at its current level of 2%.  They’re finally starting to worry about inflation and seem to think that there is much more upside risk (by inflation of course) than downside risk (recession and a slowing economy) at this point.  I’m inclined to [...]

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Regulation D Is Outdated

Miscellaneous

I understand the purpose of a savings account completely: they are to be used to put money into and to keep it there.  However it would be an insane idea to think that one would not have the ability to access that money with any level of ease.  The Federal Reserve however seems to think [...]

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