Mainstream News

Fed Vice Chair Says Higher Rates Not Assured After Thresholds Hit

"Federal Reserve Vice Chairman Janet Yellen said the central bank may hold the benchmark lending rate near zero even if unemployment and inflation hit its near-term policy targets. U.S. central bankers are focusing the full force of monetary policy on reviving growth and reducing 7.9 percent unemployment, using near-zero interest rates and a program of unprecedented bond buying. Yellen’s comments reflect the view of some policy makers that there is a risk of damaging the expansion by raising rates too early." Continue reading →

Continue ReadingFed Vice Chair Says Higher Rates Not Assured After Thresholds Hit

Central banks last year bought most gold since ’64

"The world's central banks last year bought 534.6 tons of gold in 2012, the most since 1964, as global gold demand hit a record value level, the World Gold Council said Thursday in a quarterly report. Purchases by central banks for the full year rose 17% compared with 2011, while fourth-quarter purchases of 145 tons marked a 29% rise from the same period a year earlier. In value terms, total gold demand in 2012 was $236.4 billion, an all-time high, the council said" Continue reading →

Continue ReadingCentral banks last year bought most gold since ’64

Americans Are Tapping Their Homes For Cash Again

"Nearly 11 million borrowers are underwater on their mortgages, owing more than their homes are worth, according to CoreLogic, and yet home equity lines of credit are suddenly on the rise again. Blackwell pointed to increased consumer confidence, meaning borrowers now feel better about their ability to repay these loans. Both factors fueled a 19 percent jump in originations of home equity lines of credit at the end of last year, according to Equifax. In 2008, as housing was crashing, home equity line originations dropped 55 percent. With home prices up 8 percent year-over-year in December, homeowners are regaining home equity at a fast clip." Continue reading →

Continue ReadingAmericans Are Tapping Their Homes For Cash Again

Housing Industry Hopes Obama Line Will Soften Mortgage Rule

"U.S. Realtors and mortgage bankers say they hope President Barack Obama’s call for streamlined mortgage rules in his State of the Union speech will help them persuade regulators not to set a strict minimum down payment for home loans. At issue is the so-called qualified residential mortgage rule, which six banking regulators including the Federal Deposit Insurance Corp. and the Federal Reserve are aiming to complete this year. The regulators drew protests in 2011 when they released a preliminary draft requiring lenders to keep a stake in mortgages with down payments of less than 20 percent and those issued to [debt-laden] borrowers." Continue reading →

Continue ReadingHousing Industry Hopes Obama Line Will Soften Mortgage Rule

SEC Head Nominee Mary Jo White’s Latest Conflict of Interest

"Here’s the big question for Mary Jo White: If she becomes chairman of the Securities and Exchange Commission, where will her interests lie? With the public that pays her salary? Or with the people handing her the big bucks? White is the white-collar defense lawyer and former U.S. attorney nominated by President Barack Obama to lead the SEC. Upon leaving New York-based Debevoise & Plimpton LLP, the law firm will give her $42,500 a month in retirement pay for life, or more than $500,000 a year. This means she has a direct interest in Debevoise’s future profits, and therefore an incentive to help make sure only good things come the firm’s way." Continue reading →

Continue ReadingSEC Head Nominee Mary Jo White’s Latest Conflict of Interest

Jack Lew: The Rookie

"New York Democrat Chuck Schumer said the Treasury nominee has an 'uncanny ability to delve into a subject' and 'master it.' Americans can only hope, because you wouldn't know it based on the little that Mr. Lew claims to have known about what happened during his tenure at Citigroup from 2006-2008. He was a senior executive at the giant failing bank before and during the financial crisis, but he gave the impression he was there mostly to cash a paycheck. When Orrin Hatch ticked off the problems that afflicted the two Citi divisions that Mr. Lew oversaw as chief operating officer, the nominee seemed to know less about them than Mr. Hatch." Continue reading →

Continue ReadingJack Lew: The Rookie

Diesel shortage pushes Egyptians to the brink

"Diesel supplies are drying up as a cash-strapped government struggles to cap a mounting bill for subsidies it has promised the IMF it will reform to secure an elusive $4.8 billion loan desperately needed to keep a sagging economy afloat. The situation appears near breakdown with growing shortages, unsustainable subsidies and foreign exchange reserves running out, raising the risk that fuel bottlenecks lead to food shortages and pose a risk to political stability. Foreign reserves are down below $15 billion, less than three months' imports, despite deposits from Qatar and Turkey. The Egyptian pound has lost 8 percent of its value this year and a black market has emerged." Continue reading →

Continue ReadingDiesel shortage pushes Egyptians to the brink

Houston passes law requiring photographs, fingerprints of gold sellers

"Houston City Council on Wednesday passed new rules on precious metals dealers despite a lengthy attempt to water down the ordinance by Councilwoman Helena Brown, who called it 'safety theater' that would burden businesses and invade jewelry sellers' privacy. Officers in the Houston Police Department's precious metals unit said reputable dealers already implement many of the new rules but said the ordinance - which requires a photograph and thumbprint of each seller and mandates dealers enter transactions into an online database - will help them catch crooks and recover stolen goods." Continue reading →

Continue ReadingHouston passes law requiring photographs, fingerprints of gold sellers

Countries are using devaluation to gain an advantage – and Britain is one of the worst offenders

"At Wednesday’s Inflation Report press conference, Sir Mervyn King, Governor of the Bank of England, aired some apparently shocking numbers. Since the financial crisis began, not only had interest rates been reduced to close to zero, but the Bank of England’s balance sheet had been expanded by a factor of five. Expressed as a share of GDP, the increase has been greater than that of the US, greater than that of the European Central Bank, and greater than that of Japan. This is way beyond being an unprecedented degree of stimulus. These are completely uncharted waters we are in, and even Sir Mervyn seems to be getting worried by them." Continue reading →

Continue ReadingCountries are using devaluation to gain an advantage – and Britain is one of the worst offenders

G20 will ignore G7 demands on currency wars

"The currency market was thrown into turmoil this week after the G7 - the United States, Japan, Germany, Britain, France, Canada and Italy - issued a joint statement stating that domestic economic policies must not be used to target currencies. The G20 draft merely sticks to previous G20 language on the need to avoid excessive foreign exchange volatility, the delegate said. Others have noted that the United States has created new money in a very similar way to the Bank of Japan, although Federal Reserve Chairman Ben Bernanke insisted the U.S. central bank was acting in line with the G7 statement, 'using domestic policy tools to advance domestic objectives'." Continue reading →

Continue ReadingG20 will ignore G7 demands on currency wars