On January 12th, 2007, Bear Stearns stock price closed over $171 per share. On March the 11th, 2008, it closed just below $63 per share. On Sunday, March 16th, the Federal Reserve Bank assisted JP Morgan in organizing a “rescue” of Bear Stearns by purchasing shares of Bear Stearns at $2 per share. A week…
Unfortunately, our March Investment Commentary isn’t any more optimistic than our previous 4 Investment Commentaries. Our economy is in the middle of a significant economic slowdown and the beginnings of significant inflation, a deadly combination that plagued our economy for most of the 1970’s. One year ago, a bushel of wheat was trading for about…
After cutting the Fed Funds Rate to 4 ¼% in December, the Federal Reserve Bank slashed the Fed Funds Rate ¾% on Tuesday, January 22nd and another ½% on Wednesday, January 30th to 3%. As we said in our January Investment Commentary, this is nothing more than throwing tennis balls at an oncoming train. The…
As expected, the Federal Open market Committee (FOMC) reduced the Fed Funds Rate at their December 11th meeting. The rate was reduced by ¼ % to 4 ¼ %. The Fed was criticized by some for not reducing the rate more (to ease credit, stimulate the economy and avoid a recession). The Fed was also…
On Tuesday, December 11, the Federal Open Market Committee (FOMC) will meet and their primary concern has to be the continued sub-prime mortgage mess and the credit crisis it has created. We are fairly certain the Fed will cut the Fed Funds rate by ¼%, conventional wisdom thinking this will rescue the US economy. We…
