The Middle Class may serve two masters … Real estate analyst Melody Wright made an observation today on the Julia La Roche Show that is in line with my thinking over the past few months. This economy, she noted, is becoming one where labor services the rich or the less fortunate. Restaurants, financial services, etc., … Continue reading The markets: It’s the exploding froth on the water that gives real information.
The Federal Reserve Discount Window rate is up to 5.25% after the Federal Open Market Committee decided yesterday to increase its fed funds target range to 5.00% to 5.25%. At this writing, the Federal Funds Futures quote is 95.31 which reflects an average effective fed funds rate of 4.69%. Given that the target range was … Continue reading Interbank Market News Scan: What the fed funds futures market is telling me …
What the “moral hazard” critics overlook is the economic impact on those of us who rely primarily on wages to get by. Hiccups in the current monetary and financial system in the immediate term that change the wage earners standard of living have a greater detrimental impact versus those individuals buttressed by the ownership of claims on income. While it behooves the wage earner to reduce his or her exposure to the current monetary and financial system, the short-term bandage on this injury should be applied. The wage earner should bear in mind that this fix is short-term and that it is up to us to seek out a longer-term solution. Continue reading There is no such thing as “moral hazard” surrounding this bank bailout.
Lawyers Write the Bets. Bankers Sell the Bets. 