The Fed Moving in to Avoid a U.S. Recession

Jack Crooks takes a look at the Federal Reserve and what actions it's taking to prevent the up and coming recession. In this issue of Money and Markets, Mr. Crooks explains further that U.S. growth is dependent on investor spending.

Jupiter, Fla. (PRWEB) December 9, 2007 -- Jack Crooks takes a look at the Federal Reserve and what actions it's taking to prevent the up and coming recession. Mr. Crooks explains further that U.S. growth is dependent on investor spending.

If the Federal Reserve is serious about trying to avoid a recession, it's going to embark on one of the most massive rate-cutting, money-pumping efforts we've ever seen. And next week could mark a new launching pad in that herculean effort.

The Fed knows what's happening. They see the huge losses on Wall Street. They see how panicked mortgage investors are, and how pinched consumers are becoming. They also know that U.S. growth depends on investor faith and consumer confidence. So they're going to try and keep investors investing and consumers happily shopping away until at least yearend.

Banks are more reluctant to loan out money, which leads to business activity coming to a halt. If businesses grind to a halt, that in turn, spells disaster for consumer spending. 

"Investors borrowed an estimated $1 trillion from Japan to invest in riskier assets. Now, as these investors recoil from the rising risk of losses, they're rushing back. But so far, only a small fraction of that money has returned to Japan, and already the yen has rallied sharply. Using the continuous futures contract as a benchmark, the value of each yen has surged from less than .82 cents in July to nearly .94 cents in November. Now, it's come back down a bit, to about .90 cents," Mr. Crooks states.

To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1254

About JACK CROOKS & MONEY AND MARKETS    
John (Jack) Crooks is the founder and president of Black Swan Capital, an independent advisory firm specializing in foreign exchange and currency markets investing for retail and institutional clients. A seasoned financial advisory with nearly 20 years of investment experience, Mr. Crooks uses both quantitative and qualitative approaches to determine the fundamental driving force(s) behind the movement of the currency, capital, and commodities markets. He is the editor of Weiss Research's latest investment offerings, World Currency Alert and World Currency Options, which were launched in August 2007.

Mr. Crooks also founded Ross International Asset Management, a discretionary money management firm specializing in global stock, bond, and currency asset management for retail clients. Previously, he was general manager of Plexus Trading, where he specialized in currency futures and commodities trading. During his successful career, Mr. Crooks served as chief currency and futures strategist of M2 Futures Inc., an investment boutique headquartered in Chicago, as well as vice president of Global Strategic Research for an international investment boutique, where he was responsible for providing daily advice and global strategy analysis.

Prior to entering the investment arena, Mr. Crooks held various corporate finance positions. He has written extensively on the subject of global currencies and international economics and has been published in Asian Times, Futures Magazine, Barron's, Bloomberg, Dow Jones Newswire, and across many financial websites. He has also appeared on Bloomberg TV and CNBC.

Mr. Crooks holds a bachelor's degree in finance from Florida State University and a master's in business administration from the University of North Texas.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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