I think it all smells... BAD!!!

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Cheneys betting on bad news?
A look at the president and vice president's financial disclosure forms.

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E-mail to a friendTools IndexPrint-friendly versionSite MapDiscuss in a Message BoardArticle IndexBy Kiplinger's Personal Finance Magazine
Vice President Dick Cheney's financial advisers are apparently betting on a rise in inflation and interest rates and on a decline in the value of the dollar against foreign currencies. That's the conclusion we draw after scouring the financial disclosure form released by Cheney recently.

As of the end of last year, Cheney and his wife, Lynne, held between $10 million and $25 million in Vanguard Short-Term Tax-Exempt fund (VWSTX, news, msgs) (it's impossible to be more precise because the disclosure form lists holdings within ranges). The fund's holdings of tax-free municipal bonds mature, on average, in a little more than a year -- meaning that the fund should hold up well if rates rise.

The Cheneys held another $1 million to $5 million in Vanguard Tax-Exempt Money Market fund (VMSXX, news, msgs), which is practically risk-free and could benefit from continued increases in short-term interest rates. And the couple had between $2 million and $10 million in Vanguard Inflation-Protected Securities fund (VIPSX, news, msgs). The principal and interest payments of inflation-protected bonds rise along with consumer prices, making them good inflation hedges.


Expecting dollar drop?
The Cheneys also had between $10 million and $25 million in American Century International Bond (BEGBX, news, msgs). The fund buys mainly high-quality foreign bonds (predominantly in Europe) and rarely hedges against possible increases in the value of the dollar. Indeed, its prospectus limits dollar exposure to 25% of assets and the fund currently has only 6% of assets in dollars, according to an American Century spokesman.

The Cheneys' total assets could be as high as $94.6 million, according to the disclosure form. The vice president's advisers say the vice president pays no attention to his investments. His lawyer, Terrence O'Donnell, says outside money managers supervise the investments. "He has nothing to do with it," O'Donnell says.

you are the delusnal i gress you are in a great financial position i dont know what you teach but you should take a course in common sense economics your thinking is phathic i hope you never experience what the general public is experiencing. yea recession great idea great real

Cohan is correct, although he failed to mention short-term government intervention also sends the wrong message to our world-wide creditors.
But, yes, we need to allow the markets to find a bottom from which to rise. Politically motivated jabs at the problem merely prolong the agony.

Actually listening to Fed Chairman Bernanke's testimony, it's crystal clear that he does NOT expect a recession in 2008, but that, for whatever reasons, he favors a short-term, targeted stimulus package of about $100 Billion. My question is, why isn't anyone seriously discussing the possible liability contained in existing credit swap instruments, said to be in the multi-trillions of dollars, and how to prevent or mollify that problem? To me, that's the nuclear issue.

This says it all "trying to stimulate the economy artificially". Let the market cycle take place. We will come out the other side healthy and strong as usual.
Bernanke is clueless about the economy and the banking sector. If you disagree, take a look at all his comments about how healthy everything is pre the subprime meltdown. As late as October 2007 he was saying there was no problem and nothing to worry about. This is who we have as the head of the FED? God help us!

Bernanke is clueless!

I think it's amazing that the great intellects at the Fed don't understand that oil rising three x during the year is like a lot of interest rate rises and you don't need both. If they had allowed rates to stay low for a couple of years, the mortgage mess wouldn't be what it is. the housing market wouldn't be dead, and the economy may be weathering a gradual slowdown. Interest rate cuts and stimulus pkgs now are after the horse is out. Lower rates and stimulus will help but with the economy in slow down already and people being laid off (and can't pay even a lower mortgage payment) we are in for a hard ride.

Think the Fed is looking for a "short term fix" to a longer term problem. Don't understand the logic of "economic stimulis" (pumping more cash into the economy), with the clear view that inflation is accellarating, at an alarming rate.

I believe that a major revelant problem is caused by the devaluation of the dollar, on the world market. the Euro was under $1.00 in 2002, yet today it commands in excess of $1.46. Elementary economics will relate the cause of this to deficit spending. Does anyone believe that this is not a contributing factor to inflation?

An objective evaluation of the economic performance of the present administration policies, must be rated as "sub par".

In addition to leaving this country with a record deficit, we are also straddled with the task of exiting from a war, with limited returns.

THE FINANCIAL MARKETS ARE IN SHAMBLES. THE SUB PRIME MESS HAS PEOPLE LOOSING THEIR HOMES, MORE COMPANIES ARE ANNOUNCING COMING LAYOFFS. OUR LARGE BANKS ARE SELLING BUNDLED MORTGAGES TO OVER SEAS INVESTORS. ALL THIS CONTINUES WHILE WE ARE POURING ONE TO TWO BILLION DOLLARS A MONTH IN THE HOLE CALLED IRAC. WE NOW HEAR ABOUT POURING MORE MONEY INTO THE ECONOMY WHEN INFLATION IS ROARING AHEAD. WE SURELY ARE HEADED TOWARDS A PERIOD OF STAGFLATION. THE ECONOMIC EXPERTISE OF THIS ADMINISTRATION CAN BE DESCRIBED AS NOW PLANING TO PAINT THE HOUSE AFTER IT HAS BURNED DOWN.

Any time the Fed and the elected representatives agree on something the result will be a disaster. Why does he not support tax cuts or extending the current ones yet feels they need to pump money into the economy? Sounds like a political solution yet the Fed was set up to be distinct from the political process. Remember Japan in the 80s, they had zero lending rates and still could not stimulate their economy because of the over inflated real estate market there. The Fed should adopt a simple solution, just say no to a tax rebate, vote yes to extend the tax cuts and maintain the current short term rates before they send the dollar to zero too. Let the market work through the mortage crisis too. Home purchases were already subsidized through the IRS interest deduction. Next step will be to give everyone a home if we continue on this insane path to keep homes they cannot afford. The jerks who furnished the mortgages also need to go out of business because stupid is as stupid does.