Fed Sees U.S. Economic Growth Slowing, Mulls Policy Options ( QE-3)

Fox Business ^ | 8-22-2012 | Staff

[scooby321]

The Federal Reserve is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably, minutes from the central bank's August meeting show.

[scooby321]

Ben is to try and bail out Obama. Nothing he has tried has worked and will increase the cost of food and gas.

[griswold3]

Pushing on a string.
Inflation is the goal of the Fed/Govt. The money supply is up however the velocity is waaaay down. Watching confidence now.
Folks just don’t understand what’s going on.
Today’s term: Normalcy bias

[familyop]

Huge bond-buying on the way—enough to frighten the mortgage security fiends. It’s a reaction, in part, to so many ongoing, published exclamations that the end is near (opinions intended to prop the dollar internationally for government income recipients). Fill ‘er up and get to those sightseeing places now, if you’re going to. Gas is going up even more.

[familyop]

Economy columns are shouting that retail is about to boom with “back to school.” News (opinion/propaganda) is entertainment now, for those of us who enjoy circuses and interesting times in history. Political speech is even better. Yeehaw!

[apoliticalone]

Bernanke, the banker in chief is also trying to pump up the wealth of his Wall Street pals, inevitably at heavy expense of the USA dollar and cost of food and everything. All to get the stock market (perceived as the economy) bumped back.

Prior to the 1980s playing Wall St and the GDP financial services sector that it represents was a relatively insignificant part of our economy. Instead of an economy based upon real production and the use of equity markets to create capital for productive ventures, we have a scam financial casino that is intended to benefit primarily the insiders using risky games of chance. High freq trading is not about creating capital. It is about taking advantage of the public, just as did the flash crash and Facebook IPO. It is all a sucker's play.

The Fed has removed the reasonable alternative and option where people and insurance cos and pension funds could place their money conservatively and make a relatively risk free but decent steady safe returns and by-pass the games of chance and casino. Now the Fed instead of encouraging Americans to reduce debt and save , they are doing the opposite. They want Americans in debt and spending it freely, and putting all their retirement eggs in the stock market. Diversification and balance is needed and the Fed has stomped out the availability of a balanced fixed income strategy.