By Martin Hutchinson Contributing Editor At their two-day meeting that starts today (Tuesday), U.S. Federal Reserve policymakers will have to grapple with a moral choice that is well beyond the pay grade of central bankers – choosing between the financial stability of U.S. homeowners and world hunger. That's not an exaggeration. Interest-rate policy normally only […]
Archives for April 2008
April 2008 - Page 2 of 14 - Money Morning - Only the News You Can Profit From
Note to the Federal Government: Leave the Price-Setting to the Market
By Peter D. SchiffGuest Columnist Those unfamiliar with marketplace dynamics may not recognize how government activity has created price distortions across our economy. But when these "artificial" chains fail to restrain the market, the underlying forces become easier to see. Much as the easy credit mandated by the government propelled home prices to bubble levels, […]
Fed Will Grab Headlines This Week With "Last Hurrah" Interest-Rate Cut; Key GDP Stats Also Anticipated
By William Patalon III Executive Editor Money Morning/The Money Map Report U.S. Federal Reserve policymakers will likely cut its key interest rate to 2.0% from 2.25% this Wednesday, which would mark the seventh such move since the central bank launched its rate-reduction campaign in mid-September. But if the central bank does pare short-term interest rates, […]
Rampant Piracy Threatens Microsoft's Emerging Market Growth
By Mike Caggeso Associate Editor Earlier this month, Micorsoft Corp. (MSFT) announced its second "Fair Play Day" in 14 Latin American countries, where investigations led to the seizure of more than 160,000 counterfeit copies of Microsoft software. The contraband had an estimated street value of $18.2 million. This is just the latest attempt by the […]
Consumer Sentiment Battered by High Fuel, Housing Slump
By Jennifer YousfiManaging Editor High commodity costs, a weakening employment situation and the continued housing slump combined to push consumer sentiment down to its lowest level in a quarter-century. For the third straight month, the Reuters/University of Michigan sentiment index registered a decline. The index is down to 62.6, from 69.5 the prior month. Economists […]
Gunfire in the Gulf, Rebel Bombings, and Labor Disputes Fire Up Oil
By Jason Simpkins Associate Editor An outpouring of political tension around the globe raised concerns about oil supply, pushing oil prices up as much as $3.15 a barrel Friday, close to its all-time peak of $119.90 a barrel set last Tuesday. In the North Sea, the Forties Pipeline System, a major transportation network that pumps […]
Election 2008: U.S. Economy Cries "No mas" to the Democrats
"Election 2008" is an ongoing Money Morning series that looks for profit plays emanating from the presidential election campaign. By Martin Hutchinson Contributing Editor In Tuesday's Pennsylvania Democratic Presidential Primary, Sen. Hillary Rodham Clinton achieved the absolute bare minimum she needed to prolong her battle against Barack Obama. And she still had a slight hope […]
Don't Let China's Stock Market Slump "Decouple" You From its Massive Profit Potential
By Mike Caggeso Associate Editor THE PEOPLE'S REPUBLIC OF CHINA: When Asia expert Keith Fitz-Gerald first returned to this country a week ago, he was overwhelmed by a single impression. "This place is one big construction site," Fitz-Gerald said. "You cannot turn around without finding scaffolding, piles of materials, construction equipment and the like [no […]
Global Investing Roundups
Pepsi Chugs Along on Foreign Sales; Credit Suisse Continues its Struggles; Peltz is Thinkin' Wendy's; Drugmakers' Earnings Sedated; Dubai Aerospace to Dump $2 Billion on More Planes; Merrill Maintains Dividend; Mining CEO Bullish on Gold; Celestica's Profit Comeback PepsiCo Inc. (PEP) announced yesterday (Thursday) that a big rise in international revenue helped offset higher commodity […]
Slight Decline in Durable Goods Could Be Good News for the U.S. Economy
By Jennifer Yousfi Managing Editor Two conflicting reports released yesterday (Thursday) have economists at odds as to what will happen next week, when both the advance estimate for first quarter gross domestic product (GDP) and the Federal Open Market Committee (FOMC) statement are released Wednesday. "There seems to be a sense in the market that […]