What is a level of U.S. debt that financial markets think is too large? The answer is “we have no idea” because it will depend on what is going on around the world and where else investors could park their money, said Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, a […]
In March 2008, the Fed overlooked the clear signals provided by the Bear Stearns’ failure leading to the Great Economic Recession. The Federal Reserve is sticking to its mantra of high-interest rates for longer in order to regain inflation control. By so doing, the Fed risks inviting a financial system crisis next year that could
Is The Fed Ignoring Signs of Another Financial Collapse? Read More »
The Fed’s interest rate hikes have already precipitated a financial crisis. The central bank created an economy that depends on artificially low interest rates and periodic quantitative easing. It simply can’t function in a high-interest-rate environment. An economist at the Fed – According to their analysis, more than one-third (37%) of non-financial US companies are in
Fed Economists Warn of Looming Disaster Due to High Interest Rates Read More »
New York and San Francisco, where less than half of the office spaces are occupied. “It’s really the perfect storm,” he said. “You know, these buildings are worth less than they were when they were originally financed, and interest rates being up, valuations down, they’re not going to be able to refinance these buildings.” Many
“Every rate hiking cycle of the last 70 years has ended in recession (c. 80% of the time) and/or a financial crisis… His comments came after three U.S. banks have collapsed, as federal authorities organized major banks to deposit $30 billion into First Republic Bank FRC, +3.57% to stave off a fourth. “At this stage,
