The Federal Reserve should be announcing its interest rate decision later today, and stocks are heading higher on the assumption that the Fed is likely to keep interest rates near 0%, as well as the expectation that the Fed will keep stimulus help coming in. Indeed, what Ben Bernanke says about economic policy going forward is more likely to influence the stock market than just about anything else today, and expectations that he will play up the fact that we’re only at the beginning of the recovery, and that there will be a continued need for economic stimulus for some …read more

Fed Adopts Plan to Wrap Borrowers in Giant-size Condoms
The Federal Reserve approved a plan that would crack down on dubious lending practices that have hurt many of the riskiest “subprime” borrowers.
The plan would bar lenders from making loans to panhandlers, bums and hobos. In addition, the proposal would require lenders to make sure risky borrowers set aside money to pay for taxes and insurance, and send bank personnel out to do borrowers’ laundry.
According to Susan Wachter of the University of Pennsylvania’s Wharton School of Business, “Clearly this is closing the barn door after the fact.” Professor Wachter goes …read more