Recent News
The Wall Street Journal reports that Exxon has cut off funding to groups that questioned the validity of global warming and connections to fossil fuels. The article says Exxon states that, "climate-science models that link greenhouse-gas concentrations to global warming are getting more reliable ." |
Home 
Neubert's Trades The Fed Considers Collateral Value vs. Inflation
Neubert's Trades The Fed Considers Collateral Value vs. Inflation
| The Fed Considers Collateral Value vs. Inflation |
| Written by David Neubert | |||
| Thursday, 12 June 2008 09:16 | |||
|
Would the Fed hold back on stopping inflation just to protect its new mortgage portfolio? Michael Pento at GreenFaucet certainly proposes the idea. I think the proposal is wrong. The value of collateral held by the Fed is much less important to them than the long-term effects of inflation. Inflation hurts the credibility of the Fed and thus long term interest rates (in the long term). And having an untrustworthy central bank would wreck havoc with the economy and the Fed greater than any losses on the collateral value of loans to banks. The real worry? Stagflation. The Fed is now considering raising interest rates to stop inflation in the face of a slowing economy. Disclosure: I hold dollars, the value of which inflation is slowly dwindling. I do not hold mortgage bonds or have a mortgage.
|
|||
| Last Updated on Thursday, 12 June 2008 09:56 |
Latest Postings
- Energy Stocks Got a Boost Monday
- 12 Interesting Things I Learned at The Feast
- In a Warming World Coastal Forests Are the Only Defense
- FDA Approvals and What They Mean to You
- What Happens to the Stock Market if Obama Becomes the CEO of America?
- Global Bailouts Will Lead to Global Inflation: How to Play It
- Global Bailouts Will Lead to Global Inflation: How to Play It
- Orbit Gum: Whiter Teeth Plus Gout and Heart Disease
- Exxon Mobil (XOM) Works On Its Eco Image
- Bush's Final Legacy: Stealth Tort Reform
- Amendment 58 in Colorado Seeks to End Subsidies for Big Oil
- Have the Numbers Gotten Too Big to Understand?
- Why Paulson Can't Clean Up the Pollution on Wall Street
- Will the Real David Icke Please Sit Down
- Beyond Growth: The Wealth of Community
- Big Oil Falls with the Stock Market
- The Rebirth of the System: From Caterpillar to Butterfly
- Pain Relief Without Addiction
- Why I Like Obama on Energy
- The Feast: Social Innovation Conference
- Vaccination Side Effects, Sponsored by Merck
- We Won!!!
- Reframe It: Reading Between the Lines
- The Next Great Pandemic
- Tesoro (TSO) Fights California Ethanol Mandate