Category Archives: Economy

What Does An Inverted Yield Curve Mean?

You've probably been hearing some news lately about how the yield curve has gone inverted recently. You man be wondering, "What is an inverted yield curve? And why does that matter to me?" These are two great questions, and important ones too! Check out this really cool video of the history of the treasury yield…
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How was 2018 for you?

If you're like most investors in America, 2018 was not your favorite year when it comes to your investments. After nearly a decade of great returns in the stock market, 2018 really poured some cold water on the party. The S&P 500 index was down -4.38% (if you include reinvested dividends) for the year. That's…
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The most reliable recession indicator has been deteriorating

From Yahoo! Finance today, written by Scott Gamm The most accurate gauge of recession risk is starting to show signs of weakness. Weekly initial claims for unemployment insurance rose to a six-month high of 234,000 for the week of Thanksgiving, an increase of 10,000 from the prior week.  This is the third week in a row of increasing…
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Federal Reserve Cuts Stimulus As Expected

By Jonathan Spicer and Jason Lange WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday announced a further $10 billion reduction in its monthly bond purchases as it stuck to a plan to wind down its extraordinary stimulus despite recent turmoil in emerging markets. Fed Chairman Ben Bernanke, who hands the central bank's reins to…
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Senate Close To Ending Shutdown And Increasing Debt Ceiling

It looks like the Senate leaders are finally getting close to ending the two week long government shut down and once again increasing the nations debt ceiling.  While the government shutdown has only affected about 15% of the operating government programs, it's put a big black eye on bickering members of the Senate.  The media…
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Bernanke Announces QE3 In A Big Way

Ben Bernanke announced today that QE3 (Quantitative Easing 3) would be an open-ended round of buying mortgage securities and keeping rates between 0% and 0.25% through mid-2015. This move is the biggest and boldest of all the easing the committee has done yet. Unlike QE1 and QE2 where there were limits set to how much…
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August Jobs Report Worse Than Expected

One headline for the August jobs report today read, "US economy added 96,000 jobs in August and the unemployment rate fell to 8.1%". Well that sounds pretty good, until you look deeper into the numbers to see what it really meant. Economists were expecting 125,000 new jobs in August which would have been much better.…
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Bernanke Plans to Continue Easy Policy

This morning Ben Bernanke spoke to the National Association for Business Economics and stated that the Central bank will continue it's supportive policy even as unemployment rates decline.  He said that the U.S. economy needs to grow more quickly if it is to produce enough jobs to bring down the unemployment rate further.  In other words,…
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