Friday, April 10, 2009 EST
Jon Markman wrote a very interesting article regarding one of the major problems the global ecnomcy faces: DEBT. While the goverment adds more debt to fix the problem.

These steps have given rise to fantastic speculation opportunities that we will be exploring together for years because, while they are well-intentioned, they are also wildly contradictory and create gigantic entryways for speculation and exploitation.

Credit analyst Brian Reynolds put the challenge of understanding the underlying structure of what's happening best by observing that governments' response amounts to something like a Zen riddle:

  • The global economy's main problem is that there is too much debt . . .
  • Yet governments are trying to add more debt in an effort to get credit flowing again . . .
  • While at the same time attacking bondholders and bankers, the very people they depend upon to create, sell and buy all that new debt.

Continue to the article here

Wednesday, April 8, 2009 EST

Fed pushes back recovery forecast

According to the minutes of the Fed's latest policy meeting, which were released Wednesday, the central bank said that gross domestic product, the broadest measure of economic activity, is likely to flatten out in the second half of 2009 and expand only slowly next year.

The Fed also said that it now expected the unemployment rate to rise more steeply into early next year before "flattening out at a high level over the rest of the year." The unemployment rate hit 8.5% nationwide in March, up from 8.1% a month earlier.