The direction of the economy has been really weak. The economy has been growing at a pace of about half of what the historical average is – as the New Year approaches. This slow growth may keep the Federal Reserve “printing” money at just over $1 Trillion per year. Recently however, we are beginning to … Continue reading US Economy 2014
Since Quantitative Easing 3(QE3) started in September2012 the Federal Reserve began purchasing 40 billion dollars worth of mortgage-backed securities a month. Four short months later they started buying an additional $45 billion dollars worth of treasury bonds each month for a grand total of $85 billion a month. The theory behind this plan is: the … Continue reading Should the Federal Reserve taper its bond buying program?
…that is the question. A bit over a month ago, I wrote an article explaining what tapering was and why it was a good thing. Today, the Federal Open Market Committee (FOMC) began a meeting which will conclude tomorrow, Wednesday the 18th at 12:30pm. At 2:30pm Ben Bernanke will get in front of the camera … Continue reading To Taper Or Not To Taper
This article will aim to explain in simple terms how bonds work and how they can effect the economy. Let's explain what it is: Let's say a city needs $1 million to build a bridge.Not many people can afford to give them $1 million, but what the city does is start by creating a legal … Continue reading How A Bond Works
If you majored in a business related field, then you probably know the difference between investing your money and saving your money. You understand that an investor which owns a business or real-estate property can find themselves unable to pay their bills. The rest of us who did not major in a business related field … Continue reading Saving Or Investing