By: Andrew Moran During the Sell Everything frenzy that was pervasive during the historic market rout in March, the short sellers developed a bad reputation for being opportunistic, greedy, and odious. There were widespread rumors that the U.S. government would mirror South Korea and slap a temporary ban on short selling to put a lid on the […]
Archives for April 2020
First State Bank fails as coronavirus pandemic claims its first banking victim
Well, we may now understand why the Federal Deposit Insurance Corporation (FDIC) published that oddly-timed video a couple of weeks ago that discouraged depositors from withdrawing their money from the bank. The Wuhan Coronavirus has claimed its first banking victim. The FDIC announced on Friday that West Virginia’s First State Bank failed and its accounts […]
Job losses felt in Michigan, Pennsylvania as coronavirus shuts down nation
In the last two weeks, the U.S. government has reported more than 10 million initial jobless claims as the national economy shuts down as a result of the coronavirus pandemic. Despite the federal government spending $2.2 trillion and the Federal Reserve pumping $4 trillion into the economy, it will take a long time for households […]
Jerome Powell & Associates? Federal Reserve’s next actions could involve buying stocks
By: Andrew Moran Will the Eccles Building turn into an investment house? Will the Federal Reserve be rebranded Powell & Associates? Will the central bank buy and sell stocks? After pulling the trigger on the mother of all monetary stimulus measures in the form of unlimited quantitative easing, the only thing left for the Fed is […]
15 million U.S. households could default on mortgages by the summer
The group of Americans that the Wuhan Coronavirus has impacted the most is the middle-class. Already a vulnerable demographic due to the enormous amount of debt it accumulated during the boom phase of the business cycle, the outbreak could create another financial tsunami that could damage the economy: defaults. According to Moody’s Analytics, as many […]