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European Union Agreement: Good or Bad for the Dow Industrials?
Do not look to the EU agreement for a clue about the U.S. stock market trend.

By Bob Stokes
12/12/2011 5:30:00 PM

Will the EU agreement prove bullish or bearish for world stock markets, including the Dow Industrials? Let's put it this way...

Filed Under: bailouts, banks, Dow Industrials, Elliott Wave Principle, European debt crisis, European Union (EU), Fannie Mae, stimulus package, U.S. STOCK MARKET

Category: Stocks


What's Next for the Fed: Announce "QE-3"?
Inflation-engines are sputtering.

By Bob Stokes
12/6/2011 5:15:00 PM

Even though the economy remains weak, the Fed has not announced additional quantitative easing. Has the central bank reached its monetary and political limit?...

Filed Under: banks, central banks, deflation, inflation, monetary policy, monetization, quantitative easing, social mood, stimulus package, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


America's Biggest Banks: How Safe Are They?
"The Coming Worldwide Bank run"

By Bob Stokes
11/30/2011 4:30:00 PM

Fifteen major U.S. and European banks were just downgraded by Standard & Poor's. Please consider this insightful excerpt from a recent Elliott Wave Theorist titled, "The Coming Worldwide Bank run"...

Filed Under: bailouts, central banks, Club EWI, credit crisis, debt downgrade, european central bank, European debt crisis, liquidity, Robert Prechter, soverign debt crisis, stimulus package

Category: U.S. Economy


The Federal Reserve: Is This "House Divided" Losing Credibility?
Signs that a rare economic trend is now underway

By Bob Stokes
11/16/2011 4:45:00 PM

Is this the point where Bernanke can no longer use Fed policy to "inflate at will"? Well, Robert Prechter says something "momentous" happened on September 21, 2011...

Filed Under: Ben Bernanke, central banks, deflation, inflation, monetary policy, QE2, quantitative easing, Robert Prechter, stimulus package, Treasury bonds, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


The Wealthy Witch of Wall Street: Past and Present Penny-Pinching
Will the public sector be forced to become as "tight-fisted" as Hetty Green?

By Bob Stokes
10/28/2011 4:30:00 PM

Stories of her frugality are legendary: she traveled in an old carriage, bought broken cookies in bulk because they were less expensive, and reportedly spent half a night looking for a lost two cent stamp. But the most extreme example of her pathological stinginess relates to...

Filed Under: Ben Bernanke, Robert Prechter, central banks, deflation, history, monetary policy, stimulus package, Troubled Asset Relief Program (TARP), U.S. Federal Reserve (the Fed), Wall Street

Category: U.S. Economy


Faster "Economic Reversal" than 2008?
Signs that the economic downturn is speeding up

By Bob Stokes
9/9/2011 2:45:00 PM

There's yet another indicator that our economic deterioration might very well accelerate more rapidly than what happened in 2008. You can see this indicator for yourself...

Filed Under: consumer confidence, consumer spending, economic depression, gross domestic product (GDP), stimulus package

Category: U.S. Economy


Judgment Day for Keynesian Economics: Headed To "The Ash Heap of History"?
Government Intervention in the Economy: Does the Evidence Say It Works?

By Bob Stokes
8/2/2011 5:45:00 PM

During the past few years, the federal government followed Keynes' script by trying virtually everything it could to fix our weak economy. And what did we get in return?...
 

Filed Under: bailouts, central banks, Federal Deposit Insurance Corporation (FDIC), gross domestic product (GDP), monetary policy, quantitative easing, Robert Prechter, stimulus package

Category: U.S. Economy


Three Strikes for the Fed: What's Next for the Economy?
What to Expect from the New Economic Trend in the Years Ahead

By Bob Stokes
7/29/2011 5:00:00 PM

The Fed's easy money campaign has defined the front line of that "war on credit." The problem is that it just hasn't worked...
 

Filed Under: Robert Prechter, Elliott Wave Theorist, housing prices, monetary policy, QE2, quantitative easing, stimulus package, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


$600 Billion Later: Why QE2 Will Not Stop Deflation
The Fed Doesn't Control the Economy

By Bob Stokes
7/22/2011 2:45:00 PM

Some in the financial media argue that QE2 worked because the Fed has prevented a Japanese-like deflation. But is inflation alive and well? Keep the above chart in mind as you read...

Filed Under: Ben Bernanke, central banks, deflation, monetary policy, QE2, quantitative easing, Robert Prechter, stimulus package, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


The Fed and Interest Rates: Surprise, Surprise
The Federal Reserve Bank's interest rate policy is not as "independent" as most people think

By Vadim Pokhlebkin
6/28/2011 5:15:00 PM

You may remember the event that dominated last week's U.S. economic calendar: the June 22 Federal Reserve's interest rates announcement followed by Ben Bernanke's press-conference. In a credit-based economy that revolves around lending and borrowing, interest rates are a hugely important component of the overall economic picture. So it's no wonder that Wall Street and Main Street both pay close attention to the Fed's interest rates decisions. But the fact is that the Fed is no more in charge of interest rates than it is of the weather. See this chart...

Filed Under: Ben Bernanke, central banks, Federal Open Market Committee (FOMC), monetary policy, Robert Prechter, stimulus package, Treasury bills (T-bills), Treasury bonds, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


What Will Happen to the Stock Market When QE2 Ends?
Club EWI's free "Independent Investor eBook, 2011 Edition" offers you an unorthodox view of the Fed's quantitative easing program

By Vadim Pokhlebkin
6/27/2011 12:00:00 PM

Club EWI's free "Independent Investor eBook, 2011 Edition" offers you an unorthodox view of quantitative easing and its "effects" on stocks and the economy...

Filed Under: Ben Bernanke, Elliott wave, Federal Open Market Committee (FOMC), liquidity, market manipulation, monetary policy, monetization, Robert Prechter, QE2, quantitative easing, Robert Prechter, stimulus package, U.S. Federal Reserve (the Fed)

Category: Stocks


DJIA Closes Below 12,000 -- Again. What's Going On?
Better results come from directly observing market behavior, not reading Fed statements

By Vadim Pokhlebkin
6/24/2011 5:15:00 PM

On Wednesday, June 22, the Federal Reserve Bank released its latest interest rates policy statement (no change). Afterward the Fed Chairman Ben Bernanke held a press conference, followed by a Q&A period. The financial media paid lots of attention to what Bernanke said. Our own Steve Hochberg -- editor of the Monday-Wednesday-Friday Short Term Update -- had this to say about Bernanke's press conference...

Filed Under: Ben Bernanke, economic depression, Elliott wave, Federal Open Market Committee (FOMC), gross domestic product (GDP), monetary policy, QE2, quantitative easing, recession, stimulus package, stock indexes, U.S. Federal Reserve (the Fed)

Category: Stocks


Six Straight Weeks of Decline Take DJIA Below 12,000: What Now?
Before blaming falling stocks on the most recent weak economic reports, let's check some dates

By Vadim Pokhlebkin
6/10/2011 5:30:00 PM

As of June 10, the Dow has suffered the "longest losing streak since the fall of 2002," reports The Associated Press. As for why stocks are falling, most observers agree: Blame "weaker hiring, industrial output, and a moribund housing market." The economic reports from the past two weeks made that clear. But wait a minute. The DJIA didn't top in the past two weeks -- it topped on April 29!

Filed Under: Bear market, Ben Bernanke, bull market, Dow Jones Industrial Average (DJIA), economic depression, Elliott wave, Federal Open Market Committee (FOMC), Nasdaq Composite, S&P 500, stimulus package, unemployment

Category: Stocks


Quantitative Easing: Why It Has NOT Brought Back Inflation
EWI's new groundbreaking FREE eBook teaches you how to think and invest independently

By Vadim Pokhlebkin
3/23/2011 9:30:00 AM

During hyperinflation, interest rates typically rise to double digits per month. Inflationists find it difficult to reconcile the Fed’s massive balance sheet growth since August 2008 with short term rates at zero. But deflationists understand why investors are willing to hold government paper at such low returns...

Filed Under: Ben Bernanke, Robert Prechter, credit crisis, crude oil, deflation, earnings, Elliott Wave Theorist, gold futures, hyperinflation, inflation, liquidity, M3 money supply, market manipulation, monetary policy, monetization, Robert Prechter, quantitative easing, stimulus package, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


"Everyone Knows" Gold Should Be Rising -- Why Is It Sinking Instead?
Why gold and silver's "bullish fundamentals" don't seem bullish any more

By Vadim Pokhlebkin
1/21/2011 10:15:00 AM

As gold climbed to its December 2010 all-time high of $1,431 an ounce, virtually everyone believed it would only go higher. Well, here we are, a month-and-a-half later. "Madman Bernanke" is still at it. Europe's debt crisis remains fundamentally unresolved. Inflationists are still waiting for a Zimbabwe-like collapse. Yet on January 21, gold fell as low as $1,337 an ounce. WHY?

Filed Under: Ben Bernanke, bull market, European Union (EU), hyperinflation, inflation, Irish debt crisis, quantitative easing, Robert Prechter, safe haven, Sovereign Debt, stimulus package, U.S. Federal Reserve (the Fed)

Category: Gold and Silver


Understanding the Federal Reserve Bank
To understand what's a greater threat to the U.S. economy -- inflation or deflation -- it helps to understand what role the U.S. Federal Reserve plays

By Vadim Pokhlebkin
1/12/2011 10:30:00 PM

Despite so much focus on the policies of the Fed, its operations remain somewhat of a mystery to most investors -- in no smaller measure, due to their complexity. So, we put together a free 35-page report for our Club EWI members that explains the Fed, its goals and, very importantly, its limitations in layman's terms. Enjoy this short excerpt!

 

Filed Under: Ben Bernanke, Campaign for Independent Thinking, consumer spending, deflation, european central bank, inflation, monetary policy, monetization, Robert Prechter, stimulus package, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


Day-After Christmas Retail Sales Disappoint: Sure, Blame It On The Snow
The performance of retail sales does NOT seem to be driven by the drop or rise in outside temperatures.

By Nico Isaac
12/27/2010 5:30:00 PM

The day after Christmas is to the world of retail what gravity is to planet Earth. Known as "Returns Day," "Boxing Day" (in the UK) and/or "Black Friday II," this single calendar square is historically one of the top five busiest shopping days of the year, when swarms of gift-receivers deck the malls with bills of money. Such was not the case for this year's December 26.

Filed Under: Campaign for Independent Thinking, consumer spending, Elliott Wave Principle, fundamental analysis, social mood, stimulus package

Category: U.S. Economy


EUR/USD: From $1.43 to $1.29 -- In Less Than a Month!
Why is the U.S. dollar getting stronger when "everyone knows" it should be crashing?

By Vadim Pokhlebkin
11/30/2010 11:15:00 AM

Since early November, when the Fed announced the second round of quantitative easing (QE2), the U.S. dollar has trended upward. The EUR/USD, the euro-dollar exchange rate and most actively traded forex pair, fell from near $1.43 then into the $1.29 range this week. That's a U.S. dollar gain of 13 cents (9%) so far. Almost no one expected that. On the contrary, a month ago the mainstream analysts and even the public had all but written off the USD. How can forex markets be so illogical? The truth is, they are only "illogical" if you expect them to unfold according to the logic of "fundamental analysis."

Filed Under: Elliott Wave Principle, euro/USD exchange rate, euro, euro/USD exchange rate, U.S. Federal Reserve (the Fed), forex trading, quantitative easing, quantitative easing, sentiment, stimulus package, U.S. dollar

Category: Currencies


Why The Stock Market Is NOT Random
A free Club EWI report shows you the patterned nature of stock market movements

By Nico Isaac
10/18/2010 5:15:00 PM

US Stocks Rise As Bernanke's Comments Provide Boost -- VERSUS -- U.S. stocks wavered Friday as comments from Federal Reserve Chairman Ben Bernanke reinforced expectations for the central bank to move to prop up the economy. How can the same event -- Ben Bernanke's speech -- be bullish AND bearish for the stock market? You might as well say that it moves at random, as most people do.

Filed Under: Robert Prechter, Ralph Nelson Elliott, Ben Bernanke, U.S. Federal Reserve (the Fed), stimulus package, quantitative easing

Category: Classic Prechter


How to Keep Your Money Safe During a Depression
Discover Ways to Protect Your Wealth -- Before the Scramble Starts

By Bob Stokes
9/13/2010 4:00:00 PM

So if the hoped for "economic recovery" has yet to happen, how about the stock market?  Is a new and powerful bull trend about to unfold?  Well, our Elliott wave analysis reveals a clear answer to that question...

Filed Under: stimulus package, Elliott Wave Principle

Category: U.S. Economy