2013 U.S. Economic Update & Outlook
Mar28

2013 U.S. Economic Update & Outlook

Despite a recent series of positive economic data in the first quarter of 2013, the U.S. economic recovery is still in progress, with significant headwinds that need to be addressed.  The data has not been consistent, nor are other conditions supportive enough, to be able to conclude that there will be solid & significant economic growth above last year.   However, the positive economic, manufacturing, and housing numbers, had all...

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Implications of QE3 and Investment Outlook
Sep17

Implications of QE3 and Investment Outlook

  On 9/13/2012 the Federal Reserve’s Federal Open Market Committee (FOMC) announced it will: • Purchase additional agency mortgage-backed securities (MBS), at a pace of $40 billion per month (quantitative easing). • Extend the average maturity of its existing holdings of securities/Treasuries through to the end of the year. • Reinvest principal payments from agency debt & mortgage-backed securities, back into mortgage-backed...

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Operation Twist 2 – Federal Reserve Shifts Bonds
Sep21

Operation Twist 2 – Federal Reserve Shifts Bonds

On 9/21/2011 the Federal Reserve’s Federal Open Market Committee (FOMC) announced it will: • Extend the average maturity of its existing holdings of Treasuries. • Swap $400 billion worth of shorter-term maturity Treasuries /government bonds with longer-term Treasuries by the end of June 2012. • Reinvest principal payments from agency mortgage-backed debt/securities back into mortgage-backed securities. • Maintain near zero fed funds...

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Recommendations For Investors On U.S. Debt Deal Uncertainty
Jul31

Recommendations For Investors On U.S. Debt Deal Uncertainty

With just two days left for the U.S. to raise the debt ceiling, investors are unsure of what to do about the situation and a potential U.S. debt default.

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2011 Mid-Year U.S. Economic Update & Outlook
May30

2011 Mid-Year U.S. Economic Update & Outlook

The U.S. economy expanded 1.8%, the unemployment rate edged up to 9.0%, U.S. government debt situation worsened during the first quarter of 2011.

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Federal Reserve Stays The Course & Maintains Decision On Interest Rates
Apr28

Federal Reserve Stays The Course & Maintains Decision On Interest Rates

On 4/27/2011 The Fed announced it will complete its $600 billion of Treasuries by end of current quarter (June 2011), and keep rates low with no rush to reverse stimulus.

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Impact Of The Federal Reserve Buying $600 Billion More In Treasuries By Second Quarter of 2011
Nov04

Impact Of The Federal Reserve Buying $600 Billion More In Treasuries By Second Quarter of 2011

On 11/3/2010 the US Federal Reserve announced it is committing $600 billion to buy more government treasuries/bonds in order to stimulate the weak US economy.  This is the second massively large and unconventional program of quantitative easing (money printing). In the statement released by the Federal Open Market Committee (FOMC) it said that although spending and investment have been rising in some areas in general, it still remains...

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Fannie & Freddie May Need Another $221 Billion Through 2013

On 10/21/2010, the Federal Housing Finance Agency (FHFA) stated that Fannie May & Freddie Mac’s additional capital needs are expected to be between $221 billion and $363 billion, through 2013. The potential draws under the Preferred Stock Purchase Agreements (PSPAs) with the US Department of the Treasury to date have been  $148 billion.  The FHFA’s projections primarily reflect credit related expenses (provision for...

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Obama Signs Financial Reform Law

On Wednesday, July 21 2010, US President Barack Obama signed the historic bank reform bill, the largest overhaul of the US financial industry regulation since the Great Depression.  The legislation is named the Dodd-Frank Wall Street Reform and Consumer Protection Act. . The main items of the bill include measures aimed to regulate the industry and protect consumers: – Ban proprietary trading by banks. – Oversight of the...

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UK Raises Taxes On Rich

On 3/24/2010, UK’s Prime Minister Gordon Brown’s ruling Labour Party government used its last budget weeks before a national election, to raise taxes on the wealthy. It is a move to help offset breaks given to lower income earners.  For example, the elimination of home purchase duties for first time home buyers, will be offset by a doubling in the stamp duty to 5% for properties costing over 1 Million pounds. Another example is...

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