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Sharpen Your Pencil – And Put These Three Stocks on Your "Shopping List"

Ask any of our gurus for advice on how to survive a stock-market sell-off – or even a whipsaw period like the one we’re navigating now – and you’ll get a surprising answer.

Keep a shopping list ready, they’ll tell you…

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U.S. Economy Archives - Page 7 of 107 - Money Morning - Only the News You Can Profit From- Money Morning - Only the News You Can Profit From.

  • Brace Yourself: This Is What the Fed’s QE Has Done for Our Economy

    The Fed's QE (quantitative easing) program has created multiple trillions of dollars since it first started in 2008.

    But now there are signs the QE policy will finally come to a close.

    To continue reading, please click here…

  • What You Need to Know About Silver Prices and the Fed QE Taper

    Silver prices have rebounded about 28% since the lows of late June, and are currently trading at around $23 an ounce.

    This move was key for silver prices – it means the metal broke out above its 50-day moving average.

    Barclays' technical analysts pointed out that last week was silver's best week since 2011, with a gain of 14.3%.

    To continue reading, please click here...

  • The Most Important Number to Watch This Week

    The esoteric – yet highly accurate – Hindenburg Omen we looked at Friday may suggest the probability of a market crash. But the number I'm watching this week could cause one.

    As a standalone figure, of course, the yield on 10-year Treasuries is small. But the amount of money it impacts worldwide is flat-out staggering.

    Out of the estimated $1.5 quadrillion dollars' worth of derivatives on the planet right now, roughly $500 trillion is specifically related to interest rates.

    So you can see why the 10-year gets so much attention. But right now, I'm watching it even more carefully… for one important reason.

    When the Hindenburg was sounding the alarm last week, 10-year Treasury yields spiked at the same time, up to 2.8210% before relaxing a bit in early trading last Friday as of press time. That suggests to me the Fed is losing control over interest rates.

    No doubt this is a frightening scenario, which is why it's important to remember…

    To continue reading, please click here…

  • The Best Way to Ignite the Economy

    The problem with the U.S. government's stimulus efforts to create jobs, and the Federal Reserve's quantitative easing to foster full employment, is that banks are the only direct beneficiaries.

    There's just no good pool of jobs being formed from the trickle-down effect that first bathes bankers in bonuses, and then showers shareholders with buybacks and dividends.

    There is a better way.

    And, in spite of the details which additionally involve two necessary but minor structural changes that can be accomplished with the stroke of a pen, there are only two primary steps we need to take to create good-paying, long-term jobs and crank up economic growth.

    Step 1 to Growth and Better Jobs

    To continue reading, please click here…

  • The Most Hated Man on Wall Street – And Why You Should Back Him

    Interview with Senator Angus King, Co-author of 21st century Glass-Steagall

    A little more than two weeks ago a "little" story hit the news. And by little, I mean perhaps the biggest money story that you and I will likely see in our lifetimes.

    That's because, for the first time in decades, it sets up two opponents, Wall Street and Washington, on opposite sides of the ring.

    So who is "the most hated man on Wall Street" right now. That would be Senator Angus King, along with his cohorts Senators Elizabeth Warren and John McCain.

    To continue reading, please click here…

  • President Obama, Champion of the Free Market

    This week, President Obama said something that made me shake my head.

    While speaking outside Phoenix, AZ's Desert Vista High School on Tuesday, the president rejected accusations of favoring "socialism" in the housing markets.
    "I know that sounds confusing to folks who call me a 'Socialist,'" he said. "I think I saw some posters there on the way in."
    "But," he continued, "I actually believe in the free market."
    Here's the thing…

    After five years of top-down government policies that have done little to spur economic growth, we're skeptical about the president's love for unfettered capitalism.

    Just look at the following seven "free-market" policies implemented by President Obama during his four-and-a-half years in office:

    To continue reading, please click here…

  • Why Millions of Americans are Still "Trapped" in Their Homes

    For millions of Americans who were underwater on their mortgages, the tide is finally receding.

    That's good news for the housing market, of course, and for the U.S. economy as a whole, as housing is a major engine of the economy.

    Housing not only generates construction jobs, one of the hottest job sectors in the country right now, it also sparks spending on home furnishings and appliances. And as home prices increase, people feel more wealthy and tend to spend more.

    The number of homeowners underwater – those who owe more on their mortgage than their home is worth – dropped in the first quarter to 25.4% percent of all mortgages, or 13 million homeowners, from 31.4 % a year earlier, real estate researcher Zillow reports.

    To continue reading, please click here…

  • The "Part Time-ification" of America: How We've Been Conned Again

    By now, you've had a few days to digest the "wonderful" jobs numbers reported from Washington last Friday.

    Well, don't get too excited about the economy. We've been conned again.

    First off, 59% of all jobs created this year are in 3 sectors: Leisure/Hospitality, Retail Trade and Administrative/Waste Services. Wages in those sectors have fallen by 0.7%. These jobs pay an average of $15.80 per hour versus the $23.98 average hourly wage. Which means "jobs creation" just equals cheaper labor.

    The American jobs participation rate is at 34-year lows and falling, as people give up and leave the workforce.

    Underemployment is between 14% and 15% and rising.

    To continue reading, please click here…

  • What a QE Taper Means for Markets and the Next Fed Chair

    On Tuesday, Federal Reserve Bank of Chicago President Charles Evans announced that he wouldn't be surprised if the central bank begins to taper its $85 billion monthly bond-buying program in September.

    Evans is the third official this week to signal a QE taper. Richard Fisher, president of the Dallas Fed, and Dennis Lockhart, president of the Atlanta Fed, parroted Evans' sentiment.

    While Fisher indicated he would prefer to cut back bond purchases in August, Lockhart stated a preference for a September QE taper, although the Fed could wait longer if economic growth and unemployment trends reverse.

    But it is Evans' announcement that is the most important. Evans is a member of the activist wing of the Federal Reserve. These members strongly support unconventional monetary policies such as bond buying, which are designed to reduce borrowing costs to spur aggregate demand and hiring across the country.

    His views reflect those of the majority of members of the FOMC, the Fed's monetary policy committee.

    To continue reading, please click here…

  • Expansion of Consumer Credit is a Boon – When Done Right

    As Wal-Mart Stores Inc. (NYSE: WMT) showed us this week, consumer credit is finally expanding in the United States.

    The retailer broke into the banking industry after years of opposition from banks and labor unions. Bloombergreports that Wal-Mart is now backing Progress Financial.

    Progress Financial is one of an increasing number of lending institutions that provides service to people without bank accounts or with bad credit history; primarily, it targets the approximately 23 million U.S. Hispanics who are characteristically unable to borrow due to their limited credit histories.

    "Progress fills an important niche," Brian Melzer, an assistant professor of finance at Northwestern University's Kellogg School of Management, told Bloomberg. "They take people who banks won't take risks on…These people are getting access to credit. A certain amount of that is going to be spent at Wal-Mart."

    To continue reading, please click here…