Markets Boom Inspite: Federal Reserve has decided to taper its bond-buying program by $10 billion US to $75 billion

The U.S. Federal Reserve has decided to taper its bond-buying program by $10 billion US to $75 billion a month, beginning in January.

As Ben Bernanke prepares to step down as chair of the powerful U.S. central bank, the Fed voted Wednesday to reduce its monthly bond-buying program from $85 billion to $75 billion a month.

"Beginning in January, the committee will add to its holdings of agency mortgage-backed securities at a pace of $35 billion per month rather than $40 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $40 billion per month rather than $45 billion per month," it said in a statement.

The move came as a surprise to investors, who did not expect the Fed to taper its stimulus in Bernanke's final month in office. Markets surged on the news with the Dow up 200 points in the half hour after the announcement.

It was at an all-time high at the end of the day, up 240 points at 16,119.

The bond purchases are intended to keep long-term loan rates low to spur economic growth and Bernanke in his news conference noted that the Fed continues a high rate of stimulus and continues to build a large portfolio of U.S. bonds, now amounting to about $4 trillion.

http://www.cbc.ca/news/business/u-s-federal-reserve-tapers-bond-buying-to-75b-us-a-month-1.2468578

Sandy Winick, a two-time bankrupt and philanderer hitting his stride in the murky world of penny stocks

 

The Swinging Swindler (Part 2 of 2)

Sandy Winick, a two-time bankrupt and philanderer, started out slowly in business in Toronto before hitting his stride in the murky world of penny stocks. The U.S. stock watchdog blew the whistle on him in 2009. The Ontario regulator followed two years later. His response: Go big or go home.

 

Sandy Winick had settled into a multi-million dollar mansion in an upscale north Toronto neighbourhood with his wife and two young daughters in 2005. It seemed life couldn’t get much better. They would frolic in an outdoor pool and entertain frequently. They reveled in other comforts such as a home theatre and big recreation room. Four fireplaces kept them cozy. A giant aquarium was a nice conversation piece. Winick and his second wife Jodi also drove luxury cars and travelled a lot. He had come a long way after growing up poor and struggling in business as a young adult before hitting it big in the shady world of penny stock promotion.

But by 2009, cracks had appeared. Two years earlier, Winick quit Blackout Media, an entity that actually held a minority stake in a real business –The Fight Network. The fledging pay television network reached Canadian television screens and attracted financing from venture capitalists. Blackout said Winick had departed “to pursue other interests” without explaining why or what happened to his ownership stake.

In August 2009, the U.S. Securities and Exchange Commission found Winick had broken numerous securities laws in spinning out a stunning 59 empty companies from Blackout so he could sell unregistered shares and pocket the money. Proceeds for him totaled $3.2 million (U.S.). The regulator ordered a payback. He ignored it. On the personal side, there were fewer family gatherings in the north Toronto backyard. His marriage was in trouble. Within a year, Winick split from his wife while continuing a long-running affair with another woman.

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