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Gee, have you noticed that there is a debt bubble collapsing. Do ya' think irresponsible BORROWING and lending has something to do with it? Yes, who in their right mind? (only 1 in 6 homeowners).

Are you for real? Credit card debt is a HUGE problem. If people are reneging on their mortgages, they are not going to think twice about screwing the credit card company. The card companies WAY OVEREXTENDED credit to people who can never afford to repay it. I know of people who have...

Monetary policy is asymmetric. It works well to slow things down via interest rate increases but it doesn't work as well to get things going. As the Fed lowers interest rates, the cost of holding (hoarding) money drops, you can stick it under the mattress with very little opportunity cost. I...

Then it's agreed. The Fed should print more money and make more speeches!

A few weeks ago Nouriel Roubini called for the Fed to lower the Fed Funds to 0. While he used to be on the fringes, people are now listening to what he says. I have no doubt that the Fed will lower rates to 0.25 by the time this is all done.

What's the thinking on this? I'm thinking they let things fall today and assess the damage over the weekend. If it's bad, I wouldn't be surprised to see an emergency cut on SUNDAY of anywhere from 50bp to 100bp (gotta beat the Asian opening of course). I'm finally warming up to gold...

Does anyone know where I can find the statistics for the velocity of money in the U.S.? I've searched through the Federal Reserve stats and am unable to find it. All help is appreciated. Thanks.

Surfer, it's possible as you've shown above, but it's fleeting at best. The panic to escape bank deposits led to the above instance. However I think you would be hard pressed to find a period of history where nominal interest rates went negative and stayed there for an extended period of time...

The answer is no. Nominal interest rates do not go negative. Only the real rate can go negative (nominal - rate of inflation = real rate). Think about it, would you pay someone to borrow money from you? If money became such a hindrance (liability) to those who held it that they needed to...

Not quite. Let's say you are a bank holding bonds in Corporation A. To protect yourself, you purchased a credit default swap on the underlying face value. Corporation A starts to deteriorate and so do the value of the bonds you hold. Thank goodness you bought that insurance against default...

Say, aren't you the guy that said the S&P would NEVER go below 1200 again? Aren't you the guy who bought commodity stocks back in January? Aren't you the guy who said there is no credit crunch? Aren't you the guy who said he was never wrong?

It would seem that they are indeed robbing from future generations, but they are screwing themselves even worse. 2007 marked the first year that the baby boomers started to retire and draw on Old Age Security. It only goes up from here. Just imagine, you are about to retire and you've just...

After watching the video you can see how out of touch and DEAD WRONG that Art Laffer was on the economy. It's sad that guys like that have the ear of policy makers. Schiff's message of returning to saving, investing and producing is dead on. If one of the presidential candidates latched on...

Hi Art. Just wondering if the calendar biases for the indices turn negative next week. Thanks.

Shhh, big secret. Me make so much much money. So easy do this. Bang on drum, then buy yankee dollar. Yabba, dabba, doo!

"IB's as well as other brokerages safeguards are for their benefit and theirs only." I agree 100% in this case. IB (and other brokers) have moved to protect their capital, their business, and in the process, their clients. Remember, they are a business. They have a right to protect their...

A couple of points: 1. Other brokers are reducing margin for the same stocks. It's prudent for all of them to do so. 2. It's at the broker's discretion as to whether they extend margin on stocks or not. End of story. 3. As for IB liking this, I don't think so. The brokers make a...

TD Waterhouse posted this gem for their clients today: FYI: Reduced Loan Value for Select US Securities SUMMARY: This information is relevant to margin accounts only. Due to recent market events, effective immediately, TD Waterhouse has reduced the loan value for 27...

You're saying my grammy was lying to me all these years. Eww! I feel so dirty now.

Sorry Edge, you got it all wrong. As I type, their bodies are being loaded on the Spruce Goose and will be flown to a secret lab somewhere in southern Alabama. The Goose will be escorted by a crack team of pilots flying in Avril Arrows. Upon, thawing and reviving the bodies, Ben Bernanke will...