President Barack Obama took the housing recovery into uncharted waters today by endorsing a bipartisan Senate blueprint for winding down Fannie Mae and Freddie Mac, the government-backed mortgage securers that formed the nucleus of the 2007-2009 financial panic.
On the surface, weekly or monthly job numbers depict an economy that is slowly — very slowly — but surely rebounding in terms of overall employment. However, once you peel back the first few layers, you quickly realize that the majority of the jobs gained each month are, for the most part, for part-time positions.
In recent weeks, speculation has been mounting that Senate Majority Leader Harry Read (D-NV) would exercise an arcane parliamentary move to change one of the chamber’s rules regarding judicial appointees.
What does this mean for the long-term? Market behavior will continue to be in reaction to super-low credit costs thanks to the Fed’s quantitative easing policy, but it’s not clear whether fears over tapering – which have led to broad sell-offs worldwide – will be abated by the Bernanke speech.
The major goal, official say, is to reduce the taxpayer burden if and when large banks start to go under.
These developments only point to the continuing erosion of the American economy.
The International Monetary Fund (IMF) has long been known as a source of economic stimulus throughout the world. For decades, the global investment group has used its resources to support struggling economies.
While the nation’s senators are busy patting themselves on the back for passing a bill that will be left to rot in the chambers of the House of Representatives, it’s worth taking the time to look at this first round of immigration reform legislation and determine what, if any, economic factors will take shape as the law develops.
In a recent speech, Richmond Federal Reserve Branch head Jeff Lacker discussed recent occurrences in the market and sought to clarify what he believed was a significant negative reaction in global markets.