Fed Seen Avoiding Historic Loss by Holding Mortgage Debt

“The Federal Reserve can avoid unprecedented losses by never selling mortgage-backed securities from its record $3.84 trillion balance sheet, according to updated estimates by Fed economists in Washington. The Fed every month is purchasing $85 billion in Treasuries and mortgage-backed securities in a program aimed at fueling economic growth and combating unemployment, which was 7.2 percent in September.”   […]

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The Coming Food Stamp Riots

It may not happen this month, or even this year, but food stamp riots are coming to America.  In fact, we got a small preview of the coming food stamp riots this past weekend when a “temporary system failure” caused food stamp cards to stop working in 17 U.S. states.  Within hours, there were “mini-riots” […]

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Senate Passes Accord to End Shutdown as House Set to Act

The Senate voted 81-18 to halt the 16-day government shutdown and raise the U.S. debt limit, moving one step closer to ending the nation’s fiscal impasse. The House of Representatives began debate at 9:24 p.m. and plans to vote later tonight. The Senate acted the day before U.S. borrowing authority was scheduled to lapse as Congress […]

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A U.S. Default Seen as Catastrophe Dwarfing Lehman’s Fall

“Anyone who remembers the collapse of Lehman Brothers Holdings Inc. little more than five years ago knows what a global financial disaster is. A U.S. government default, just weeks away if Congress fails to raise the debt ceiling as it now threatens to do, will be an economic calamity like none the world has ever […]

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First U.S. Shutdown in 17 Years Imminent With No Talks

“Republicans and Democrats say they don’t want to close the government, though neither side is budging from their positions. House Republicans, led by Speaker John Boehner, want to delay President Barack Obama’s Affordable Care Act for a year and make other changes to the law. Democrats, led by Obama, say that won’t happen. Obama will […]

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Gross Says Investors Shouldn’t Trust Moody’s on U.S. AAA Rating

“Investors shouldn’t trust the opinion of Moody’s Investors Service on the U.S.’s Aaa rating and should rely instead on the company’s competitors, according to Pacific Investment Management Co. founder Bill Gross. Moody’s and the U.S. Treasury are one “happy family,” Gross, manager of the world’s biggest bond fund, said today in a post on Twitter. […]

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ANALYST: There's A 40% Chance Of A Debt Ceiling Default, And The Path Forward Is A 'Total Mystery'

“Analysts are beginning to warn about the possibility of a debt-ceiling crisis, as Congress is still in the midst of debating a continuing resolution to avoid a government shutdown. Chris Krueger, a D.C.-based analyst for Guggenheim Partners LLC, wrote in a market commentary Wednesday that there is a 40% chance of “technical default scenarios” as a result […]

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Summers Quit Fed Quest as Democrats Spurned Obama Favorite

“Lawrence Summers’s withdrawal as a candidate for Federal Reserve chairman came after an unprecedented campaign to stop a Fed nominee even before he was announced, spearheaded by Democratic senators who took on a president of their own party. The decision by Summers, the former Treasury secretary and economic adviser to President Barack Obama, followed Democrats […]

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How the Bank Lobby Loosened U.S. Reins on Derivatives

“One by one, Gary Gensler’s supporters deserted him. Now the chief U.S. regulator of derivatives was being summoned by Treasury Secretary Jacob J. Lew to explain why he refused to compromise. Banks and lawmakers, as well as financial regulators from around the world, had besieged Lew with complaints about Gensler’s campaign to impose U.S. rules […]

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Obama-Putin Rift Over Syria Widens as G-20 Summit Starts

“The diplomatic dialogue between Barack Obama and Vladimir Putin has featured the U.S. president comparing Putin to a bored schoolboy and the Russian leader forcing an irritated Obama to wait a half-hour for a meeting. And that was before warships from the two nations drew near in the Eastern Mediterranean amid a widening rift over […]

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