For the second day in a row, Federal Reserve Chairman Ben Bernanke and US Treasury Secretary Paulson pleaded to the power players of Washington to pass their request for $700 Billion to implement their Troubled Asset Relief Program (TARP). However if we move the letters around a bit, TARP becomes TRAP and that is [...]

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The eyes of everyone from investment managers to stock and currency traders were glued to testimony of the 3 biggest players in the latest financial crisis. US Treasury Secretary Paulson, Federal Reserve Chairman Ben Bernanke and SEC Chairman Cox urged the Senate Banking Committee to approve their request for $700B of taxpayer money. Instead [...]

Posted in Bernanke, Currency forecasts, Dow, Fed Rate Cut Expectations, Federal Reserve, Forex News, Oil, dollar rally, euro, fannie mae freddie mac, forex blog, oil dollar, paulson 2 Comments »

The volatility that we have seen in the currency, stock and bond markets this past week has not been for the faint of heart. The Dow Jones Industrial Average fell 500 points on Monday, but instead of continuing lower over the course of the week, it staged the biggest 2 day rally in 5 [...]

Posted in Bank of Canada, Bank of England, Bernanke, Bloomberg, Currency forecasts, Dow, Durable Goods, Fed Emergency Cut, Fed Rate Cut, Fed Rate Cut Expectations, Fed rate hike, Forex, Forex News, Forex Podcast, G7 meeting, USD/CAD, dollar earnings, dollar rally, euro, fannie mae freddie mac, forex blog, usd/jpy No Comments »

This weekend, the US government announced that they have seized control of Fannie Mae and Freddie Mac, also known as the Government Sponsored Enterprises (GSEs). The sharp rally in the Asian and European stock markets as well as the move in Dow futures suggest that we will see similar strength in US stocks. [...]

Posted in US Dollar, US Economy, fannie mae freddie mac No Comments »

A.
First of all, who are Fannie Mae and Freddie Mac?
Fannie Mae: Is the nickname for the Federal National Mortgage Association
and
Freddie Mac: Is the nickname for the Federal Home Mortgage corporation
Collectively, they are know as GSEs or Government Sponsored Enterprises and their job is to provide local banks and mortgage lenders with liquidity [...]

Posted in Bernanke, US Dollar, fannie mae freddie mac 4 Comments »