Economy

Negative Rates: Coming Soon to a Bank Near You

Last week saw an unprecedented market freakout, as markets began pricing in the likelihood of negative interest rates in the future. Futures markets anticipated negative rates as soon as November, which sent bond yields plummeting. While Fed Chairman Jay Powell has long stated that the Fed won’t take interest...

Can You Afford the Federal Government’s Coronavirus Spending?

The federal government has already pledged $2 trillion to help households and businesses withstand the pressure placed on them from the coronavirus. But the final price tag could end up far higher, perhaps as much as $5 trillion or more. The national debt was already at $23.5 trillion before the...

Rise in Delinquent Mortgage and Rental Payments Will Weigh Heavily on the Economy

With millions of Americans having recently entered unemployment, it was no surprise that many families were going to have difficulty paying rent and mortgages. But just how much difficulty they would have has surprised even pessimistic observers.Over 30% of US apartment renters failed to pay their April rent in...

Job Losses Pile Up as Economy Continues Spiraling Downward

As the US economy continues its self-inflicted contraction, job numbers continue to paint a picture of a severely damaged economy. Just about everywhere you turn, the numbers are going from bad to worse. And as long as millions of Americans remain under lockdown, those numbers won’t get better anytime...

Markets Are Still Unsettled, and the Fed’s Actions Continue to Backfire

The bad news just keeps getting worse for investors, as stock markets continue their slide. The Dow Jones lost 10% today, dropping over 2,350 points to end the day. Not even an unprecedented monetary policy action by the Fed was able to stop the loss, so investors who are...

Markets Are Going Crazy: Are Your Investments Safe?

If you thought the last two weeks were bad for stocks, they just went from bad to worse. The Dow Jones dropped almost 1,900 points to start the day, an over 7% drop. The S&P 500 dropped 7% too, triggering the New York Stock Exchange’s first circuit breaker, the...