Using the federal government appropriating over a trillion dollars to spending and stimulus programs as well as the Federal Reserve private bank system pumping into the markets close to $10 trillion in liquidity, can there really be a liquidity crisis anymore? And if so, how numerous more trillions of dollars of liquidity will likely be necessary to solve the issue?

It need to be obvious by now to anybody paying attention that the markets are not in will need of a lot more liquidity. Through the initial $300 billion Troubled Assets Relief Program (TARP), the US Treasury invested in banks and bought unique classes of preferred stock. In response, the banks receiving TARP cash essentially stuffed it within the mattress.

Short Sale Power Hour

Last week we chatted about the waning house sales in America. They fell 30% from May to June. Those videos were filmed on Monday, July 5th and ever since that time there have been tons of articles supporting what we are saying.

Firstly, if you took our episodes last week to think that you ought to run and hide from this situation, you are entirely wrong. We share this information with you so that you can stand facing this market head on. We’re merely trying to be realists and move our approach as the market changes.