The European Central Bank has said it would not pursue a policy of quantitative easing, or money printing. But Mike Larson says that its long-term refinancing operations are having the same impact on the commodity and currency markets as QE.
Good analysis Mike. You are doing a great job. Policy makers have run out of options after 50 years of over spending. Their only choices are sink under the weight of the debt or print money. One thing I think we’ve all underestimated is how low interest rates help stocks. Let’s face it, if rates were allowed to float, we’d have interest rates in the 5% range and the Dow at about 9,000. Also, the flight to quality from Europe to the US is helping stocks and bonds and also the real US economy. No doubt the world is sliding slowly, but it will take years before there is a collapse, because the government will fight it all the way.
Knowledge Is Power in Times of Financial Crisis
Mike Larson is teaming up with Weiss Ratings on a new report detailing which banks and sovereign nations are in danger of collapsing during this new phase of the credit crisis, and which investments will allow you to weather the storm and profit.
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Are JPMorgan Chase ETNs Safe?
JPMorgan’s $2 billion trading loss prompted a credit downgrade from at least one rating agency. Ron Rowland discusses the impact credit ratings have on the three exchange-traded notes sponsored by JPMorgan Chase, and whether they represent good buys.
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Can J.P. Morgan’s Loss Be Your Gain?
Tom Essaye looks for a contrarian investment opportunity in J.P. Morgan’s $2 billion trading loss. He says J.P. Morgan shares may decline more before they recover, but he thinks regional banks have been unfairly tarnished by the incident.
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