The Fed raised the Federal Funds Rate by 25 basis points (a quarter of a percentage point) to 1.0%. This is the anchor rate on the yield curve, and, most other rates respond to it, with shorter rates today responding more than longer rates. It appears from their communications that they intend to hike rates several more times over the next 12-18 months. While I don’t see a recession over …Read More
Why Helicopter Money and Unconventional Monetary Policies Won’t Help the Economy
The equity markets continue to flirt with record highs while the yields on fixed income instruments are at or near all-time historic lows. Generally, those two market movements are not compatible. Everyone feels a high level of anxiety about the economic future. Ben Bernanke visited the Bank of Japan in early July to help them set up a new experimental monetary policy dubbed “helicopter money.” And we are living in …Read More
Fiduciary vs. suitability standard
Originally published on Tahoe Daily Tribune’s website, http://www.tahoedailytribune.com/news/opinion/15276182-113/tahoe-truckee-market-beat-fiduciary-vs-suitability-standard President Obama is pushing the Department of Labor to make some changes to the rules regarding retirement accounts. He would like to see the industry standard for retirement account advisers raised to what’s known as the fiduciary standard. Under current law, retirement account advisers can operate under what’s known as a suitability standard. Obama wants all retirement account advisers held to the …Read More