Bank “Stress Tests” Results Due In March – Don’t Expect Anyone To Fail

Under the Dodd-Frank Act, the Federal Reserve is required to conduct stress tests which are forward-looking exercises to determine whether large institutions have sufficient capital to absorb large losses and support operations under severely adverse economic conditions. The supervisory stress tests include examining capital ratios, revenue and the size of potential losses.  The Federal Reserve […]

Negative Real Interest Rates – The Invisible $290 Billion Tax On Savers

Whatever happened to the concept of earning interest on savings?  Since the start of the financial crisis in 2008, the Federal Reserve has aggressively suppressed interest rates to near zero. The Fed’s rationale for lowering interest rates was to get the economy back on track by lowering borrowing costs for both consumers and businesses.  Lower […]

Bank Savers Get Zero Returns – Is It Time To Invest In Bond Funds?

Many former bank savers, disgusted by the near zero rates offered on their savings by banks, have increasingly turned to bond funds as a means of harvesting interest income. Since 2008, when the Federal Reserve decided to force interest rates to unprecedented lows, investors have poured a staggering $1 trillion into bond funds.  Will 2013 […]

Fed Guarantees Bank Savers Negative Returns

Anyone with savings in the bank is painfully aware of the fact that they are receiving only slightly more income than someone who keeps their savings under the mattress.  In an attempt to stimulate credit demand by lowering interest rates to near zero, the Federal Reserve has effectively guaranteed negative returns to savers after taking […]

Secrets of The Federal Reserve Visually Explained

The Federal Reserve has virtually unlimited power over the economic future of America yet few people know much about it.  Is the Fed saving or destroying America? Here’s a neat history of the Federal Reserve published by Mint.com. by Mint.com.Learn about infographic design.