Stocks Sink on Earnings, Oil- AP
Wall Street pulled back Tuesday as investors appeared largely unimpressed by a rush of quarterly results from bellwethers like AT&T Corp., DuPont and McDonald's Corp. Oil prices also touched fresh highs, raising some concerns about inflation.
Wall Street pulled back Tuesday as investors appeared largely unimpressed by a rush of quarterly results from bellwethers like AT&T Corp., DuPont and McDonald's Corp. Oil prices also touched fresh highs, raising some concerns about inflation.
Raising some concerns about inflation? News bites like the one attached to the headline above from YahooFinance is why America is doomed, and this Fall's Presidential Election is going to be the mother of all farces. HIGH OIL PRICES DO NOT CAUSE INFLATION! HIGH OIL PRICES ARE CAUSED BY INFLATION! Tell everybody you know this fact. If the argue or disbelieve you, tell them again. The price of Oil is $119 a barrel because the US Dollar is all but worthless, pure and simple.
Some concerns about inflation? Just some? Inflation should be this country's NUMBER ONE concern, 24/7. The inflation that this country has in store for it, not to mention the entire world, is most likely going to cause the biggest period of social unrest in this country since Civil Rights and Vietnam War riots of the 60's. It may cause pandemonium around the globe. Check that, the freight train of inflation barreling down on this country, gathering speed by the day, is going to cause the biggest social uprising these shores has ever witnessed. The Government and the Media are already at work trying to convince us that the blame belongs on "big oil" and OPEC. No, the blame belongs unequivocally with the irresponsible monetary policy of the US Government and it's political pawn the US Federal Reserve.
Food Rationing Confronts Breadbasket of the World
MOUNTAIN VIEW, Calif. — Many parts of America, long considered the breadbasket of the world, are now confronting a once unthinkable phenomenon: food rationing. Major retailers in New York, in areas of New England, and on the West Coast are limiting purchases of flour, rice, and cooking oil as demand outstrips supply. There are also anecdotal reports that some consumers are hoarding grain stocks.
At a Costco Warehouse in Mountain View, Calif., yesterday, shoppers grew frustrated and occasionally uttered expletives as they searched in vain for the large sacks of rice they usually buy.
"Where's the rice?" an engineer from Palo Alto, Calif., Yajun Liu, said. "You should be able to buy something like rice. This is ridiculous."
ECB increased holdings of Japanese yen in 2007
FRANKFURT, April 21 (Reuters) - The European Central Bank said it favoured Japanese yen over U.S. dollars when it used the proceeds of gold sales to boost its foreign currency reserves in 2007.
Dollar Drop Slows With G-7 Blessing; Shows No Endgame
April 21 (Bloomberg) -- Traders betting on intervention by the Group of Seven nations to stem the dollar's 9 percent decline against the euro this year may be disappointed.
``It's not about levels but the volatility,'' said Geoffrey Yu, a foreign-exchange strategist in Zurich at UBS. ``If the dollar drops in a gradual fashion, they are unlikely to act. There's not really a meeting of minds as to when intervention is needed.''
A stronger euro benefits Europe by helping to temper inflation. Maintaining price stability is ``of paramount importance,'' European Central Bank President Jean-Claude Trichet said in Frankfurt on April 15. Inflation in the 15-nation euro region accelerated to 3.6 percent last month, the fastest in almost 16 years.
ECB policy makers will have to ``tolerate a stronger euro'' or raise interest rates if they want to bring inflation down, said Thomas Mayer, the London-based chief European economist at Deutsche Bank.
Commercial Banks Heading for Huge Derivatives Losses- Credit Crisis Turning into Credit Armageddon
While most investors are focused on the latest stock market rally, hidden from view is a monumental change that few recognize and fewer understand: Unprecedented amounts of old debts are coming due in America, and many are not getting refinanced.
This is not a mere “slowdown” in new lending, which would be relatively routine. This is an actual reduction in the short-term loans outstanding, which is anything but routine ... which implies a rupture in the nation's credit spigots ... and which could deliver a new shock to the U.S. economy.
If this represented a planned and voluntary effort by lenders to begin trimming America's debt excesses, it might actually be a good thing.
But that's not the case here, not even close. Rather, this debt reduction is almost exclusively forced on lenders by the pressure of events — the plunging value of mortgages, the surging defaults by debtors, and the huge losses that have caught both banks and regulators off guard.
The trillion-dollar mortgage time bomb
Risks are rising that Fannie Mae and Freddie Mac may need a government bailout that could cost far more than previous rescues.
Risks are rising that Fannie Mae and Freddie Mac may need a government bailout that could cost far more than previous rescues.
NEW YORK (CNNMoney.com) -- Among the nightmares lurking around the corner for the already battered housing and credit markets would be a meltdown at mortgage financing giants Fannie Mae and Freddie Mac.
Although few are predicting an imminent need for a bailout just yet, credit rating agency Standard & Poor's recently placed an estimated price tag on this worst case scenario -- $420 billion to $1.1 trillion of taxpayer's money.
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