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    This Has Been Making Investors Rich for 140 Years

    People are viewing the end of stimulus as a sunset. "My, what a wonderful day we've had," they say. What they should be doing is investing for tomorrow's dawn - the turmoil we're seeing now as part of Yellen's arrival is actually par for the course. It's also a great time to lock your sights on four companies that will lead the way when the smoke clears... Full Story
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  • the Federal Reserve

  • FOMC Meeting Today: How the Taper Is Affecting Markets Ben Bernanke Speaks At The National Press Club The Federal Reserve went forward with its taper plans yesterday, announcing it would reduce its bond-buying by $10 billion per month. But that is no guarantee the Fed will continue to taper, especially if the economy falters. And now that the Fed has a new chief in Janet Yellen, we could be in for some surprises this year...
  • All Things Fed: Keith Fitz-Gerald on Janet Yellen and Today's FOMC Meeting 09172013KFG1

    Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." today to discuss this week's FOMC meeting and Janet Yellen.

    On Monday, Larry Summers announced he is dropping out of the candidate list to replace Ben Bernanke and become the next Fed chief. Next in line for new Fed chief role is Janet Yellen.

    To continue reading, please click here...
  • How the Fed QE Taper Will Affect Foreign Markets Hand with gun isolated over a white background Hints from the U.S. Federal Reserve this week that the quantitative easing taper is near ruffled feathers on Wall Street last week - but the idea of less Fed stimulus has caused much more turmoil in certain overseas markets. Here are the places getting hit the hardest. Read more...

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  • The Next Fed Chief Will Be the Most Powerful of All Time Crown Q The U.S. Congress established three core objectives for monetary policy in the Federal Reserve Act of 1913: maximum employment, stable prices, and moderate long-term interest rates.

    But in addition to acting as steward of the economy, the Fed's role has expanded over the years.

    The Great Recession, a need for corporate bailouts, and concerns over the Fed's secrecy brought about recent changes to its institutional identity.

    Certainly we've had a renewed focus on the Fed's responsibility as a regulator.

    People wanted to see - needed to see - a Fed that operates no longer as a creature of the banks, but as a watchdog instead.

    Emblematically, the Dodd-Frank Wall Street Reform and Consumer Protection Act were signed into law in July 2010.

    With it, Dodd-Frank brought the most substantial changes to financial regulation since the aftermath of the Great Depression. Particularly, a greater breadth of regulatory power was given to the Fed.

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  • You can Figure out When the Fed Might Start Tapering Calculator 2 small

    Although you might think the markets simply respond any time Ben Bernanke sneezes, his "cold cycle" is not one of the indicators that will spell the slowing

    and eventual cessation of the printing press at the Fed.

    There actually is a mathematical formula used by the Federal Reserve to determine when to stop the presses.

    I could give you the formula and it would look like this:

    POP2 = [1-(%POP) m*m] *POP1.

    Or, I could share the link to the Federal Reserve's Jobs Calculator in Atlanta.

    This is the same calculator used by the Fed to determine when the jobs market and the unemployment rate will align properly. And when they do, it will signal to the Federal Reserve that it might be a good time to start tapering its $85 billion a month bond buying program.

    This is what needs to happen: The economy will have to show new job growth.

    The Fed is looking for the creation of 150,000 to 200,000 new jobs each month for 6 months. This is how we look now:

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  • Keith Fitz-Gerald: What Ben Bernanke is Doing to the Markets kfg_varney http://moneymorning.com/wp-admin/post.php?post=100375&action=edit# Read More...
  • Do We Really Need the Federal Reserve System? video-keithfitzgerald-federal-reserve-system

    Abolishing the Federal Reserve System might seem like a drastic idea, but not when you get the full story...

    You see, Congress created the U.S. Federal Reserve System to restore public confidence, provide the banking system a source of liquidity that would prevent its collapse and protect the public against inflation.

    A century later, the banking system is so big its risks dwarf the Fed's liquidity capacity, and what cost a buck back then now will set you back $21.

    That's why we asked Money Morning Chief Investment Strategist Keith Fitz-Gerald to explain how the Federal Reserve System actually helps a country's economy.

    Most importantly, we wanted to know if the United States - or any country - even needs the Fed anymore.

    Just listen to Fitz-Gerald's answer in the following interview.

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  • 7 Reasons Not to Trust the Bernanke Testimony to Congress Lie. Pinocchio with a long nose.

    As usual, the markets were hanging on every word of the Bernanke testimony to Congress today (Wednesday).

    By now, everyone should know better.

    In the years that U.S. Federal Reserve Chairman Ben Bernanke has been a member of the Fed - both as a member of the Board of Governors from 2002 to 2005, and in his two terms as chairman beginning in 2006 - he has been stupendously wrong time and time again.

    Bernanke gave the markets what they wanted by hinting that his monetary easing policies won't change any time soon, pushing both the Dow Jones Industrial Average and the Standard & Poor's 500 Index up more than 0.5% in midday trading.

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  • What You Absolutely Need to Know About Money (Part 8) isolated toy abacus Shah Gilani explains how the "extend and pretend" game became an institutionalized national treasure... Read more... Read More...
  • What You Absolutely Need to Know About Money (Part 7) By the start of the 1960s, banking in America was in a state of flux. And as Shah Gilani explains it got ugly fast. Read more... Read More...
  • The New Crisis Warning Just Issued to the Federal Reserve Bubble

    Before the housing market crash, economists warned that record low-interest and mortgage rates were fueling a housing bubble.

    Unfortunately, those fears were both overlooked and underestimated.

    Now, an advisory council to the U.S. Federal Reserve is warning the Fed that its record $85 billon-a-month stimulus and ultra-low interest rates are fueling new bubbles in student loans and farmland.

    "Recent growth in student-loan debt, to nearly $1 trillion, now exceeds credit-card outstandings and has parallels to the housing crisis," according to minutes of the council's Feb. 8 meeting.
    In addition, "agricultural land prices are veering further from what makes sense," the council said. "Members believe the run-up in agriculture land prices is a bubble resulting from persistently low interest rates."

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  • 5 Things the Federal Reserve Hopes You'll Never Find Out People-shush H

    Most Americans assume the U.S. Federal Reserve is a powerful government institution that seeks only to safeguard the dollar, boost the economy and drive employment higher.

    That's what the Fed wants you to think.

    The illusion of the Fed as a stabilizing, positive government entity has more or less existed since its creation under dubious circumstances in 1913.

    "It not only avoided the word bank, it cleverly implied federal, or government, control over the establishment of a pool of reserves that would backstop the new banking 'system,'" said Money Morning Capital Wave Strategist Shah Gilani.

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  • Why Crime Pays for "Too-Big-To-Fail" Banks U.S. banks will pay more than $100 billion in fines due to acts that caused the financial crisis. Think that bothers them? Shah Gilani explains why it's just business as usual Read More...
  • Do We Really Need the Federal Reserve? Last week I spent two days speaking to senior government officials and business leaders in Bermuda, which is one of the world’s leading international insurance and reinsurance hubs. The men and women in the room are responsible for hundreds of millions in assets worldwide.
    As I was finishing up, I received one of the most provocative questions I’ve gotten in a long time:
    "Does any nation really need a 'Fed'?"
    Here is my unequivocal answer... Read More...
  • What You Absolutely Need to Know About Money (Part 4) Ever wonder why they call the Federal Reserve “The Creature From Jekyll Island?" Shah Gilani explains Read More...