A more upbeat Federal Reserve was reassuring investors that they've been making the right bets. Stocks bounced higher on Wednesday after the central bank said the economy appears to be "leveling out" rather than simply shrinking at a slower rate. The Fed's more positive take on the economy compared with its assessment in June wasn't surprising but it still bolstered hopes that the economy is in fact rebounding. Wednesday's advance restarted the market's summer rally after a pause on Monday and Tuesday. Major market indexes jumped more than 1 percent, including the Dow Jones industrial average, which jumped 120 points. Financial and technology shares posted some of the strongest gains after ratings upgrades and profit reports provided fresh evidence of a recovery. The stock market's advance was itself adding to bank and insurance stock gains — its climb means their investment portfolios are surging in value.
Investors drew reassurance from Fed policymakers' comments. The central bank left interest rates unchanged, as expected, following a two-day policy meeting. "They did really endorse the fact that we're moving into recovery, not searching for the bottom," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland. Stocks have been rallying much of the past four weeks on expectations that the economy is strengthening. The Fed also said it would slow the pace of its program to buy $300 billion worth of Treasury securities so that it will close at the end of October, rather than September as originally intended. The central bank has bought $253 billion of the securities so far. The program is designed to reduce rates on mortgages and other consumer debt. "The fact that they are going to wind down the Treasury purchases I think leaves the clear impression that they are quite satisfied with the progress we are making in the recovery," McCain said.
But some analysts are skeptical that the market can maintain its climb even with the Fed's more optimistic words. The S&P 500 index is up 14 percent in little more than a month and 48.7 percent since it fell to a 12-year low in early March. "It looks like a pretty sharp rise to me to have a lot of sustainability," said Dan Cook, senior market analyst at IG Markets in Chicago. According to preliminary calculations, the Dow rose 120.16, or 1.3 percent, to 9,361.61. The Standard & Poor's 500 index rose 11.46, or 1.2 percent, to 1,005.81, while the Nasdaq composite index gained 28.99, or 1.5 percent, to 1,998.72. Rising stocks outpaced those that fell 5-to-2 on the New York Stock Exchange, where volume came to a light 1.2 billion shares, flat with Tuesday. Light volume can skew price moves but is typical of late summer when many traders take vacations.
All this evidence was due the Fed announcement as if our financial institutions and even our financial markets are hung strung by what the Fed does. It’s like our entire nation wants to see what the Fed says and does and then we jump and respond to it, well at least our financial markets do because the days leading up to the Federal Reserve annual planning meeting and the day of the meeting, the markets fall only to steadily climb today as the Fed closed out its meeting because sources said the Fed would announce the recovery is near and the economy is leveling out. Therefore the gains came a day after the market posted its biggest loss in five weeks. The Dow fell 97 points as investors worried about the health of banks. Investors found encouragement, however, from a range of industries. Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Ill., said quarterly results from luxury homebuilder Toll Brothers and retailer Macy's Inc. could be signaling that consumption is increasing. That is key to a recovery because consumer spending accounts for more than two-thirds of U.S. economic activity.
All types of industries saw improvement after the Fed announcement. Homebuilders jumped after Toll Brothers said 3 percent more homebuyers signed contracts in its fiscal third quarter, the first annual increase in four years. Toll's statement that many of its markets are improving boosted confidence because analysts point to unemployment and housing as two of the biggest obstacles to a rebound. Toll jumped $2.94, or 14.4 percent, to $23.42. Macy's reported a better-than-expected second-quarter profit and cited cost-cuts in raising its full-year earnings forecast. Macy's rose 93 cents, or 6 percent, to $16.40. Insurers rose after S&P raised its credit outlook for Travelers Cos. The commercial and personal property insurer advanced $1.50, or 3.3 percent, to $46.43. It was the biggest gainer among the 30 stocks that make up the Dow industrials. Tech stocks rose after Applied Materials Inc.'s fiscal third-quarter results topped analysts' expectations. The maker of equipment for manufacturing semiconductors rose 44 cents, or 3.3 percent, to $13.66.
Meanwhile, bond prices were mixed after an auction of $23 billion in 10-year Treasury notes saw demand in line with recent levels but down from last month. The Treasury Department is issuing a record $75 billion in three auctions this week. The third auction, for $15 billion in 30-year bonds, is Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.71 percent from 3.67 percent late Tuesday. Bond prices jumped Tuesday as stocks fell. Investors have been tracking demand because a drop in buyers could force the government to increase its payout. The results rise in rates would raise borrowing costs and could slow a recovery. The dollar was mixed against other major currencies, while gold rose. Yes gold rose so if that isn’t any indication that many Americans should hold on their gold and we as a nation should go back to the Gold Standard than I don’t know what is.
Benchmark crude rose 71 cents to settle at $70.16 a barrel on the New York Mercantile Exchange. The Russell 2000 index of smaller companies rose 10.05, or 1.8 percent, to 572.17. Overseas, Britain's FTSE 100 rose 1 percent, Germany's DAX index added 1.2 percent, and France's CAC-40 jumped 1.5 percent. Japan's Nikkei stock average fell 1.4 percent. But let’s get back to it, the Federal Reserve announcement helped the stocks rose and the fact that the dollar is wishy washy against other major currencies and gold is rising than it should signal to our nation that the Federal Reserve System has too much power and the dollar is worthless while gold is still priceless. So why isn’t our currency backed up by gold is the question, we as Americans should ask our nation’s leaders.
This is clear evidence as to why the Federal Reserve needs to be abolished and why we as Americans must begin to unmask the Federal Reserve and its bad financial practices in this great nation of ours once and for all. We, the American people need to ask our Congressional leaders in both the House and Senate in Washington D.C. to support HR 1207 and S 604 because these bills will audit the Federal Reserve and show us the American people and our nation’s leaders why the Fed needs to be abolished. Since its inception in 1913, the Federal Reserve has helped to devalue our dollar by 95%. During the recent economic crisis, it has poured trillions of dollars into the economy with no oversight, made secret agreements with foreign banks and governments, and has refused to tell Congress who is getting the money or to give it the details of what deals are being made.
HR 1207, Congressman Ron Paul's "Audit the Fed bill," and S 604, its Senate companion, will demand full transparency from the Federal Reserve for the first time in history by removing all restrictions from Government Accountability Office (GAO) audits of the Fed and mandating an audit by the end of 2010. We need to turn up the heat on Congress and convince them to pass both versions of the "Audit the Fed" bill. We need to sign the petitions below, send e-mails, mail letters and make phone calls in order to continue the momentum that have been made already to make a huge impact on the Abolish to FED Movement that growing daily as many Americans find out the truth about the Federal Reserve. So everyone needs to take a few moments to tell your Congressional leader to support HR 1207, and urge your Senators to cosponsor S 604. The tools below make it quick and easy to make a difference today!
There are already 282 Cosponsors for HR 1207, and 23 cosponsors for S 604! You can view the list here, or begin your efforts by signing the online petition. A treasure trove of information on Ron Paul's Audit the Fed bill but the most important thing to remember is that the stocks rise and fall based off what the Fed says and does it seems. We as Americans need to call our nation’s leaders who haven’t co-sponsored either HR 1207 or S 604. I am already doing my part by listing all the Michigan Congressional leaders who have not co-sponsored HR 1207 or S 604. This is one of the most important things that we need to do in our efforts to save this country and our freedoms. Below is a list of congressional leaders in my state who have NOT Cosponsored HR 1207 because my state of Michigan is trying to get all of its Congressional leaders in both the House and Senate to support HR 1207 and S 604 so I encourage other people to try to do the same:
Rep Stupak, Bart MI-1
Rep Kildee, Dale E. MI-5
Rep Peters, Gary MI-9
Rep Levin, Sander M. MI-12
Rep Kilpatrick, Carolyn C. MI-13
Rep Dingell, John D. MI-15
Also here is where you can sign the petition for HR 1207 and S 604:
1. Sign the HR 1207 Petition:
Click here.
2. Sign the S 604 Petition:
Click here.
3. Already signed the petitions?
Now contact your Representatives!
Click here.
Also below is a template of the letter that many people can send to their Senators or congressional leaders:
Dear Representative or Senator
Now that over $12 trillion have been pledged towards our financial crisis, more people than ever are concerned about where their money is going, and if it's accomplishing anything.
But in the face of an ever-worsening recession, the Federal Reserve refuses to furnish Congress and the American people with records of how the Bank is allotting and spending trillions of bailout dollars. Shrouded in secrecy, the Federal Reserve is a danger to our political process: No one knows where our money is going or what it is doing, and Chairman Bernanke has said that efforts to disclose such information are "counterproductive."
But that's my money they're using, Representative or Senator! $12 trillion! And without any record of how the Federal Reserve is managing and distributing these trillions of taxpayer dollars, there is no way to know if our present course is sustainable or not.
We must know what is happening with our money, and the Federal Reserve must come clean with the American people.
I am INSTRUCTING you to co-sponsor HR 1207, The Federal Reserve Transparency Act or S 604, The Federal Reserve Sunshine Act of 2009, and do everything in your power to see this bill through to a passing vote by asking your colleagues to do the same.
Sincerely,
And after sending that letter to both of your Senators and your congressional representative than I highly encourage all of us to send a letter to Nancy Pelosi and Barney Frank:
Congresswoman Barney Frank,
I am a citizen of the United States. I am one of 230 million aged to vote, and one of many millions outraged by your obstructionist behavior. We, the people of these United States, demand that you release HR 1207 from committee and bring it to the floor for a vote.
Over the years, many hearings have been held during which the Fed representatives have been asked questions . In each case that I am aware, those same Fed representatives have given neither proper nor direct answers.
It is the responsibility of Congress to oversee the actions of the Federal Reserve. As long as those actions are hidden, Congress has failed.
It is time to bring the operations of this bank into public view. It is time for a true audit. HR 1207 has been in committee since February 2009. It has over 280 cosponsors and bi-partisan support. It is apparent the time to bring this bill to a vote is now. This bill needs to be fast tracked to the floor for open debate and a vote.
Sincerely
America, today’s news about how the stocks rallied and rose dramatically after two days of being down is clear evidence of just how much power the Fed has over our economy and how now more than ever we need to abolish the Fed but getting transparency is a step toward the abolishment of the Fed. We must do all we can to abolish the Federal Reserve. This isn’t a Democratic or Republican issue but it is an American issue that we all need to be concerned about and we all need to work to abolish it. HR 1207 and S 604 are too important for us the American people to allow Congress to ignore this. If our economy is to be stronger and better than ever than it starts with exposing the Federal Reserve for the crooks they really are.
HR 1207 and S 607 both want to amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes. Therefore we need to make sure that our congressional leaders in the House and Senate pass this legislation this year because just like Healthcare reform, we can’t wait another year for the Federal Reserve to be audited currently so the truth can come out as to how the Fed has been mishandling America and misleading our nation. The evidence for why the Fed needs to go lays in the recent events of how our stocks rallied after the Federal Reserve made its announcement.
Below you can read both S 604, the Federal Reserve Sunshine Act of 2009 and HR 1207, the Federal Reserve Transparency Act of 2009 because knowing what’s in them is important. Both bills are exactly the same and there is momentum for them now so let’s make sure they happen. So let’s sign the petition and tell others to sign it as well as make phone calls and send emails to our congressional leaders in the House and Senate so that we can finally abolish the Federal Reserve System and put our nation back on the Gold Standard once the Fed is exposed through an audit. All of this is just more reason why we need to get rid of the Federal Reserve once and for all. So let’s work toward that by first getting these two pieces of legislation passed this year and next year we will see just how badly the Federal Reserve has been misleading us the American people. Thus by 2011, we could perhaps abolish the Federal Reserve once a real audit exposes the Fed for the fraud it truly is. So let’s use this momentum to put the Federal Reserve in check.
END THE FEDERAL RESERVE NOW!
Sources:
S 604 IS
111th CONGRESS
1st Session
S. 604
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
IN THE SENATE OF THE UNITED STATES
March 16, 2009
Mr. SANDERS introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Federal Reserve Sunshine Act of 2009’.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General- Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after ‘shall audit an agency’ and inserting a period.
(b) Audit- Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection:
‘(e) Audit and Report of the Federal Reserve System-
‘(1) IN GENERAL- The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2010.
‘(2) REPORT-
‘(A) REQUIRED- A report on the audit referred to in paragraph (1) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.
‘(B) CONTENTS- The report under subparagraph (A) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.’.
HR 1207 IH
111th CONGRESS
1st Session
H. R. 1207
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 26, 2009
Mr. PAUL (for himself, Mr. KAGEN, Mrs. BACHMANN, Mr. BARTLETT, Mr. JONES, Mr. REHBERG, Mr. POSEY, Mr. BROUN of Georgia, Mr. POE of Texas, Mr. BURTON of Indiana, Mr. ABERCROMBIE, and Ms. WOOLSEY) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Federal Reserve Transparency Act of 2009’.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General- Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after ‘shall audit an agency’ and inserting a period.
(b) Audit- Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection:
‘(e) Audit and Report of the Federal Reserve System-
‘(1) IN GENERAL- The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2010.
‘(2) REPORT-
‘(A) REQUIRED- A report on the audit referred to in paragraph (1) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.
‘(B) CONTENTS- The report under subparagraph (A) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.’.
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