On April 13, 2012, the US Department of the Treasury released new cost estimates for the Troubled Asset Relief Program. Looking principally at actual and projected contractual cash flows, the document concludes that: "Overall, the government is now expected to at least break even on its financial stability programs and may realize a positive return." 

For decades, investors have spent countless hours speculating about the Federal Reserve's agenda on interest rates. Market watchers study every adjective in often-cryptic Fed statements for clues about the outlook for monetary policy.

Here we go again.  A series of uncoordinated government policies are once more setting up the U.S. banking system for major losses and possibly another financial crisis.  

In a sharp break from that campaign stance and the Administration's first three budgets, President Obama is now calling for an all-in dividend tax rate of almost 45 percent, the highest rate in 27 years. The president's about-face bodes ill for the economy.

At its meeting next week, expect the Federal Reserve to proceed with its already-stated policy of a low federal funds rate and scheduled purchases of securities.

The current economic environment of low—virtually zero—interest rates has hit savers hard, but abruptly raising interest rates could harm economic growth and the housing market. Until the economy stabilizes and the Fed begins raising interest rates again, savers have few options: they can adjust their lifestyles, dip into their savings, or take on riskier investments such as gold and stocks.

Vincent R. Reinhart suggests the Fed promise to purchase government and mortgage-related securities in order to bolster the confidence of household and investors, and, in effect, encourage spending.

Day traders and their acolytes tried to pressure the Federal Reserve to open the money spigots wider this week. Fortunately, the Fed said no to QE3, at least for now. But it did vote to continue its super-easy, zero-interest-rate policy until mid-2013, well after the next presidential election.