All Posts Tagged With: "International Markets"

Are Things Looking Up?

The Dow had it’s record highest point gain today up almost 940.  Although it was up a bit today, Oil prices have been retreating and have been steadily below $90/bbl for several days.  And have you noticed the price of gasoline has also been declining?

Of course, we all know it’s not over yet, but it’s good to see some positive signs.  Unfortunately, the price of diesel fuel has not come down with trhe price of gasoline, apparently due to supply issues worldwide.  And this will keep the price of consumer goods general higher.  Seems like this ought to be a priority, and not just now but for the long-haul, that is to ensure that the availability of fuels needed to transport goods (diesel being …


Oil Prices Back Up a Bit

“Everyone knows…” are words I’m getting tired of hearing.  It is a subtle form of manipulation by forcing one to either immediately agree or disagree and by disagreeing become an outsider.  Katie Couric this evening says “The world’s oil problems all come down to the laws of supply and demand”.  Careful here.   On the face of it, the statement says something that seems very simplistic to most people (“it’s all about current supply and current demand”), and therefore lacks credibility, and manipulates people (or attempts to) into believing that long-term solutions won’t solve our immediate price problems.  The reality is, the perceived future demand and perceived future supply are the real drivers.

If every major news anchor got up in the morning and lied to …


Why Do Oil Prices Continue To Drop?

Just when you thought you couldn’t afford to go on summer vacation, just when you thought the ONLY answer to rising gasoline prices was a “gas tax holiday“, just as various states are complaining they don’t have enough tax money collected to pay for road work, now oil prices fall to a 3 month low of 121.99 for US Crude and 122.71 for Brent Crude (at noon, central time), with no end in sight

You heard me, the analysts, the same ones that said we were likely stuck with $4-5 a gallon gasoline or higher by end of summer, are telling us that buying oil commodities is a bad deal right now, and even OPEC anticipates oil prices could fall …


New Fed Powers Plan Needs Careful Thought

Let Friday, early news about a plan to broadly expand the power of the Federal Reserve was released.  Evidently the plan will be formally announced in a speech by Treasury Secretary Paulson.

I’m a bit out of breath.

McGehee was the first I saw to make mention that something like this was seriously in the works.  He expressed some concern which I share.

Seeing some more details of the plan (in the Des Moines Register Saturday morning) gave me reason to sit back and think.  The plan calls for 3 regulators, essentially eliminates any distinction between banks and thrifts, and would make the Fed the “primary regulator of market stability”, overseeing all segments of the financial services industry.

And the Democrats love it.  That should …


Fed Cuts Key Rate 3/4 Points

Wow, the Federal Reserve has reacted dramatically to the global markets spinning out of control.  According to KCCI TV’s web site this morning, the Fed lowered the federal funds rate to 3.5%:

In a statement on its Web site, the Federal Reserve took the action in view of a weakening of the economic outlook and increasing downside risks to growth.

“While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households,” the statement said. “Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.”

The KCCI story provides additional info about what’s been happening around the world, including India halting trading …


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