The Federal Reserve and ECB may lose their independence for massive mistakes in the last twenty years
Alex Brown
Sep. 22, 2007

When all is said and done, it will be revealed how the two most powerful central banks of the world have made blunder after blunder in the last twenty years. They allowed bubbles to form one after the other. They created the stagflation that is getting converted into deflation now.

The sub prime mortgage fiasco is the creation of the central banks’ easy money policy. Now they are trying to put the fire off through the water hose called liquidity. This is taking gold to new highs because liquidity insertion by central banks is nothing but simply printing more currency.

Nicolas Sarkozy and Angela Merkel were on Friday at loggerheads over the independence of the European Central Bank after the French president accused the ECB of allowing the economy to “sink”, while the German chancellor vowed to block any political interference in monetary policy.

Democrats in America have started expressing similar distaste for the Federal Reserve. Most likely US Presidential Election will be on the mistakes Federal Reserve has made in the last twenty years and perhaps not on Iraq war. Common people are suffering due to higher commodity prices, and stagnation in economic growth.

What is really dangerous is the fact that stagflation is changing to outright deflation. This is caused by the implosion of several bubbles that were the creation of ECB and Federal Reserve.

The Federal Reserve and ECB may lose their independence for massive mistakes in the last twenty years
Alex Brown
The sub prime mortgage fiasco is the creation of the central banks’ easy money policy. Now they are trying to put the fire off through the water hose called liquidity.
READ MORE>>

The Euro zone headed for a deep recession along with US economy – the financial meltdown accelerates all over the world
Joe Weinman
The unexpectedly steep fall on Friday in the Euro zone purchasing managers’ index – the third consecutive monthly drop is raising massive concerns in the internal quarters of the European Central Bank (ECB).
READ MORE>>

Dow, S&P and Nasdaq technical chart patterns resembling typical bear market rallies and then slow and steady fall to new lows
Karen Zuba
The stock market has just started its downward journey after several decades of massive bull markets. But the rallies are fabulous.
READ MORE>>

China recalls on toys and cribs is the result of ‘low quality’ transformation of world’s major corporations – the trend will devastate world economy
Fred Day
Recall of China made toys and cribs is just the start of gloom and doom in trade and world economic expansion that started with major corporations throwing the concept of quality out through the window.
READ MORE>>

Catastrophic implosion in merger and buyout bubble forcing private-equity firms and their banks to forsake deals
Sam Adelton
Kohlberg Kravis Roberts & Co. and Goldman Sachs Group Inc. abandoned their $8 billion takeover of Harman International. It is the first sign of crumbling merger and bubble mania that swept across Wall Street for many years.
READ MORE>>

Yen ready to rise again as subprime problems start manifesting the real nasty third leg
Paula Ranske
Yen shot up and then consolidated for the last six weeks. The short covering is over. The bullish undertone is intact but the euphoric exuberance among the front end brokers have diminished.
READ MORE>>

MORE ARTICLES >>