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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U.S. House Approves Historic Health Care Legislation & Passes Democratic Changes To Bill

On Sunday 3/21/2010 a divided House of Representatives (the lower house of the U.S. Congress) in the US approved historic health care legislation, and also immediately moved to separately pass a series of key White House prescribed changes to it.  The changes were a prearranged agreement, in order to guarantee the passage of the historic legislation.  The series of changes are to be sent back to the Senate (the upper house of...

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Federal Reserve Considers Selling Term Deposits

On Monday December 29 2009, the U.S. Federal Reserve proposed a program to sell interest bearing term deposits to banks, in an attempt to reduce some of the $1 Trillion in excess reserves that was pumped into the banking system earlier.  The program would be part of an exit strategy to help reduce the inflationary impact of expanding the Federal Reserve’s balance sheet during the financial crisis, which was the largest monetary...

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