Daily News Roundup

Posted by vriz on 04/08/2009

Today, we get to glimpse into the minds of the "High Priests" of the U.S. economy. That’s right: the Federal Reserve Open Market Committee meeting minutes have been released. It appears that the Fed policymakers were very worried about the credit conditions in the markets at the March 17-18 meeting. That prompted them to make the much-discussed move to invest an additional $1.15 trillion in bonds, and also to put an additional $750 billion in mortgage-backed securities. The Fed officials judged the state of the economy to still be very much precarious in March, with downside risks predominating. The Securities and Exchange Commission announced today five proposals to curb the practice of so-called short-selling. Short-selling involves borrowing stock and selling it, betting that its price declines. If the stock does drop, the investor benefits from buying it back at lower price. Didn’t know you could sell something you’d borrowed, did you? Well, apparently Wall Street folks do it all the time. And that’s, of course, how they’d like to keep it. Expect a huge fight over this in the months to come. Mr. President, we are all on the edge of our seats. . . Didn’t you say you were getting a dog for the First Family? Well… where is it?!!! Rumors are flying that there was a secret meeting in the White House between the Future First Pet and the Obamas. And we might even know the breed (pssst… it’s a Portuguese Water Dog). Ahhh, we’ll just have to wait. Maybe, we’ll know after Easter. Sigh.

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