Monthly Archives - March 2020

What Could Possibly Go Wrong? Reserve Requirements Are Now Zero

With the flurry of actions the Fed undertook over the past few weeks to supposedly “stabilize” financial markets, one very important action has flown under the radar. And it’s one that could have a very debilitating effect on US banks and the entire financial system.One of the elements of...

What Is the FOMC and How Does It Affect Your Investments?

Many investors have undoubtedly heard of the Federal Reserve System, even if they may not know exactly how it operates. But fewer have heard of the Federal Open Market Committee (FOMC), which actually makes the monetary policy decisions that the Fed carries out.The FOMC consists of the seven members...

Some Silver Linings in the Midst of Crisis

With stock markets having been on a roller coaster over the past few weeks, and numerous investors undoubtedly watching their 401(k) balances in horror, financial markets haven’t been too kind to most people. Couple that with the prospect of GDP falling almost 25% as a result of business shutdowns...

Fed Official Proclaims Fed’s “Infinite Amount of Cash”

If you’re one of those people who trusts that the people at the top know what they’re doing and have things under control, you might want to stop now, because it’s becoming abundantly clear that they don’t know what they’re doing. That’s particularly true within the Federal Reserve System,...

If You Thought a 2008-Style Crisis Was Avoidable, Think Again

We’ve been warning about an oncoming financial crisis for a while now. The fact that a financial crisis would occur was all but inevitable, given the massive bubble blown by the Federal Reserve’s extraordinarily loose monetary policy over the last 12 years. But despite the numerous warning signs that...

Helicopter Money Is Here: Are You Ready?

The raft of Federal Reserve actions to bail out Wall Street had many people thinking that we’re going back to the days of 2008, when big banks got bailed out while the little people were forced to suffer. Major banks received trillions of dollars worth of federal assistance to...