LOM News
02/13/09 - LOM Asset Management will launch a new Euro Fixed Income Fund on February 26th, 2009 12/03/08 - LOM Securities Cayman Ltd. Receives Cayman Islands Chamber of Commerce Corporate Citizen Award 1/21/09 - LOM's Bermuda office has repaired the telephone outage, you should be able to get through without any problems
Score Update - Lions : 1, Christians : 0!
by: David Barker, Head Trader, LOM
Good Morning!
Chairman Bernanke’s testimony before Congress yesterday gave little hope for an early resolution to market turmoil. In fact, Bernanke at least tacitly agreed with our headline from yesterday in his opening statements. To paraphrase the chairman admitted that risks to growth had grown substantially, whilst there is a simultaneous danger of intensified inflation.
This is an almost impossible situation for the Fed. From a monetary policy standpoint, no matter what they do they are damned to open Pandora’s Box. An easing to spur growth would unleash inflationary pressures and a tightening to ward off price pressures would choke the growth and the housing market.
Fannie Mae and Freddie Mac took center stage on the house floor yesterday and in the 23 years we have been following the semi-annual address, we have never seen such a scathing attack on both the Chairman and the Treasury Secretary as launched by Senators Dodd and Shelby. Whilst, one can argue about the semantics of the rescue package, it remains unthinkable that either/or both would be allowed to fail.
Chairman Bernanke’s testimony before Congress yesterday gave little hope for an early resolution to market turmoil. In fact, Bernanke at least tacitly agreed with our headline from yesterday in his opening statements. To paraphrase the chairman admitted that risks to growth had grown substantially, whilst there is a simultaneous danger of intensified inflation.
This is an almost impossible situation for the Fed. From a monetary policy standpoint, no matter what they do they are damned to open Pandora’s Box. An easing to spur growth would unleash inflationary pressures and a tightening to ward off price pressures would choke the growth and the housing market.
Fannie Mae and Freddie Mac took center stage on the house floor yesterday and in the 23 years we have been following the semi-annual address, we have never seen such a scathing attack on both the Chairman and the Treasury Secretary as launched by Senators Dodd and Shelby. Whilst, one can argue about the semantics of the rescue package, it remains unthinkable that either/or both would be allowed to fail.
