AIG -  Diversionary Tactic?

I find it interesting that the general public is up in arms about a measly $100 Million in AIG bonuses - yet practically oblivious to the extra $1.2 Trillion dollars that the Fed has authorized. They have created the “Ouroboros” snake to print the money to swallow the US Treasuries.  

 US Constitution, Capitalism and Confidence

So much is happening so fast that the US Congress is passing 1,000 + page spending bills without reading it - at the request of the new president - Really….

 Claw Back is what everyone is seeking - to just get back to break even, to that point before Bear Stearns was slaughtered, but at what cost?

 If the rules are going to be changed in the middle of the game - constantly - eventually people will not play - then where will we be?

 Breaking contracts and taxing individuals at 90% retroactive is worse than a dangerous precedent - it borders on treason - based on the fact that elected officials are not holding up their oath to support and defend the constitution of the United States - and may be recklessly destroying the foundations of the country.

 Quantitative Easing Spreads - As Currency Wars Get Underway

I was broadcasting live coverage of the The US Federal Reserve on Wednesday when I nearly fell out of my chair to short the dollar. The video of the live broadcast is available on the www.Investors-Education-Network.com site.

Although I discussed the possibility of Quantitative Easing, I assumed that Bernanke would wait at least until after the G20 meeting to pump another Trillion dollars into the economy.

 If all the central banks follow suite - they will effectively be filling the pool with more paper.

 Budget - Unsustainable?

On Friday the Congressional Budget Office told the Obama administration that the current level of debt, budget, and spending is “Unsustainable”. The administrations press secretary dismissed the warning with a analogy of trying to pick the basketball playoffs five years out.

 From where I sit -  that’s the problem… I believe that too many people,  that should know better, are treating this as if it was just a game… Well - maybe it is…

  Reservations on Reserve Currency?

The US Dollar suffered it’s worst week since 1985, and the Euro staged it’s best ever gain since it’s 1999 inception. Gold surged on the Quantitative Easing surprise, and some analysts expect Gold to retest the $1,000 mark. Is this the end of the Greenback?

 Signs Earlier in the Week?

The currencies showed no reaction to fundamental surprises on Monday and Tuesday.

 TICS Data - Amazingly Horrible - Setup for FOMC?

The Treasury Inflows were astoundingly weak with a negative $43 Billion versus expectations of a positive $44 Billion. Was this a factor in the QE decision?

 New Housing Starts??  - Signaling a Real Estate Bottom?

New construction unexpectedly jumped  up 22% versus an expected negative -3.4%. Where and who is building houses?

 The glut of unsold property has not disappeared, so who and how are new housing starts getting underway? Are the government accountants beginning to start counting the boxes under the bridges? Let’s wait for the revisions next month. Let’s see what the revisions look like next month!

 The Week Ahead - Lot’s of Scheduled News and High Level Meetings

Break out your popcorn and settle in your favorite seat as Ben Bernanke and Tim Geithner will be testifying on financial regulation reform before House Financial Services Committee in Washington

 Meanwhile Back at the Bank - FDIC

Market News International on Friday reported that Sheil Bair - Chairman of the FDIC stated that…. Although the FDIC deposit insurance funds is heading to zero, she’s confident it will be replenished. as the long term outlook for insured banks is “very good”

 This as Ben Bernanke on Friday addressed the Community Banks and reassured them that opportunities are available and that they need to continue lending. As for “too big to fail”, Bernanke indicated oversight is needed - which drew large applause. Bernanke said the Fed will support housing market and FDIC for now, but will taper off and withdraw.

 Tune in to the “1^st on Forex” Webinars on FX Street

Register for The Week Ahead Calendar and Webinar Every Monday at 16:00 GMT - Click Here

and Live Webinar Coverage of  the US GDP Report  Click here to Register and Tune in Thursday March 26 at 7:30 Eastern US time (11:30 GMT)  

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

If You Can’t Say Anything Good - Keep Your Mouth Shut!

Last week I was invited to the Federal Reserve in Miami for Dinner and a Seminar, The Filet was excellent! The subject matter made me uneasy as I came to realize that there is a bit of a disconnect between the realities on the ground and the knee jerk reactions taking place in Washington. 

I would like to report that the end is near for our economic troubles - however I think I will just let the Fed and the Treasury do what it does - they have some good ideas and they do seem to be taking action - although it all seems to be symptom based and observational in nature -  versus leadership based, and proactive. I was vocal about the need to address the root of the problems - Like getting people into real mfg jobs creating and installing solar panels and hydrogen-electric-propane vehicles… getting us off the oil and utility companies nipple, etc….

Retroacttive Tax Deductions - Stimulus Plan II

One suggestion I made at the Fed meeting was an idea to return the tax deduction for using credit - retroactively - for all those people teased into spending to keep the worlds economy humming? I heard Ben Bernanke today mention that he was in favor  of a second stimulus package.

Another Idea: Recall All Dollars - Before They Start The Printing!

Another Idea I blurted out (befoe they took the microphone away from me) was to recall all US paper currency and replace them with new certificates - this would have an immediate effect of temporarily flushing/wiping out the underground - unreported economy. Might as well create some new certificates as long as they are going to have to start printing a whole lot of them soon!

Technical Analysis - Dollar - Canadian Poised for a Triangle Break?

The US Dollar - Canadian - 4 Hour Chart shows a nice example of a Triangle pattern with a very strong supportive trend line and a well defined resistance line on top. The Fibonacci Retracements and Extensions are lining up with the Triangle Pattern’s potential projected price targets. 

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

I’m Back - On the Road Again…. An Evening with the Fed

Well folks, I just returned from Orlando Florida – home of Mickey Mouse, and I am now off to a cocktail reception and dinner at the Miami branch of the Federal Reserve tonight. That’s right, your humble narrator on the markets has been invited to: “An Evening with the Fed: Financial Crisis - What Happened - The Fed’s Response” - When I talked with the coordinator and joked about whether Bernanke would be there I was met with silence….                         

Multi-Tasking

I will tell you all about my adventure to the Fed over the next day or two - Be sure to tune in to my webinar on Monday at 12 noon eastern time as I am sure to have some observations for you. Click on the link below to register for the webinar.  I am busy trading all markets and maintaining other issues personal and otherwise - So I’m having fun learning how to live on a few hours of sleep and multi-task even more than usual…

Orlando: Psychology and Mind Management Conference

In Orlando, I did not dance with Mini-Mouse or take in the rides, I was at an amazing conference conducted by one of my Mentors, Mr. T. Harv Eker, The conference had nothing to do with trading or investing – it was all about Psychology and Mind Management – any professional trader will likely tell you that mastering your mind is the most critical factor to success - after you learn the mechanics of trading. Being a mentor, presenter and an educator - I love continuing education, networking,  and learning from others - I then pass my learned experiences on to those I teach.

Hot Topic - The Economy - No Surprises

While officially the conference had nothing to do with trading – but the economy, investing, and trading was a common topic in between speakers and sessions. For the people who knew me and my background it was really interesting to interact with non-traders discussing things like the Vix and why Richard Nixon took the US Dollar off the gold standard, etc…

My Economy is Fine

It was interesting as the primary speaker and celebrity – The host is quite well known – T. Harv Eker – He is successful and he came out stating that we need to be thankful for all the good things we have. He stated that “His Economy is Fine”.

The Need for Financial Education

Mr. Eker (and many of us) see this time as a great opportunity (remember everything is perception and perspective) He stated that he is buying. Someone in the crowd asked,  “What are you buying?”  Mr. Eker paused, squinted and quietly stated that he was buying indexes. It bothered me that some people I talked to did not know what an index was – the need for education is enormous.