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Keyword: qe

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  • KOO: The US Is In A 'QE Trap' And Both The Markets And The Media Are Missing It

    03/26/2014 7:44:24 AM PDT · by blam · 12 replies
    KOO: The US Is In A 'QE Trap' And Both The Markets And The Media Are Missing It Joe WeisenthalMar. 26, 2014, 4:48 AM Nomura economist Richard Koo is out with his first comments since Janet Yellen's first FOMC meeting last week. Remember, Yellen briefly spooked markets with what some perceived to be a hawkish tone, mostly owing to the specificity with which she talked about the timing of the first rate hike. According to Koo, the US is in a "QE Trap" and both the market and the media are missing it. This trap, he says, explains the hawkish...
  • "QE Was A Massive Gift Intended To Boost Wealth", Fed President Admits

    03/23/2014 10:57:16 AM PDT · by SkyPilot · 35 replies
    Zero Hedge ^ | 22 March 14 | Tyler Durden
    <p>With Bernanke gone, the remaining Fed members knowing full well they will be crucified, metaphorically of course (if not literally) when it all inevitably comes crashing down, are finally at liberty with their words... and the truth is bleeding out courtesy of the president of the Dallas Fed, via Bloomberg.</p>
  • The Fed Is Not Printing Money, It's Doing Something Much Worse

    03/10/2014 7:03:39 AM PDT · by SeekAndFind · 18 replies
    Forbes ^ | 03/09/2014 | John Tamny
    The Federal Reserve’s seemingly endless program of quantitative easing (QE) begun under Ben Bernanke, and continuing at a slightly slower pace under Janet Yellen, has some of the punditry and much of the electorate up in arms. With good reason. Implicit in quantitative easing is the horribly obtuse notion that central banks can produce real economic growth through their monetary machinations. If only life were so simple. Back in the world of the reasonable, the sole purpose of money is as a stable measure of value that facilitates the exchange of goods and investment. Quantitative easing, by its very name,...
  • Fed's Plosser 'very worried' about QE consequences

    03/06/2014 8:18:26 AM PST · by Red in Blue PA · 7 replies
    Philadelphia Federal Reserve President Charles Plosser is "very worried" about the potential for unintended consequences of the Fed's massive quantitative easing program. Plosser told CNBC that the U.S. was still suffering from "lasting effects" of the recession and "may never return" to its previous growth rates—and warned that policy should not bet on growth returning to previous rates, saying it could be "many, many years." (Read More: Fed's Plosser: We need to begin to get rid of QE) With gross domestic product expanding at a 2.4 percent annual rate, according to the Commerce Department last Friday, Plosser said that the...
  • Cautiously Looking Beyond the Fed

    02/22/2014 8:20:43 AM PST · by Kaslin · 2 replies
    Townhall.com ^ | February 22, 2014 | Charles Payne
    There wasn't a lot of volume, but the market shrugged off an early indecision and rallied higher. The bias is to the upside, and despite a shaky start to the year, the long-term trend remains intact, which is very encouraging. Also encouraging is that the market is moving higher, even as the dollar edged higher as conventional wisdom shifts towards the belief; that it's going to take a universally acknowledged disaster or hiccup in the economy, for the Fed to divert from its unofficial goal of monthly tapering. The market moving higher on less Fed accommodation has been the...
  • Margin Debt Hits All-Time High

    02/02/2014 12:46:29 PM PST · by Red in Blue PA · 16 replies
    In the month of December margin debt on the NYSE surged by over $20 Billion dollars hitting a new all-time high of $444.931 billion. The rise in leverage also sent investors net worth to a negative $149.358 billion which is also a record. This is shown in the chart below.
  • Why stronger GDP growth isn't creating more jobs

    01/31/2014 7:14:17 AM PST · by SeekAndFind · 35 replies
    FORTUNE ^ | 01/30/2014 | By Stephen Gandel, senior editor
    The government said GDP rose 3.2% in the last three months of 2013 -- one of the fastest rates since the end of the recession, though slower than the third quarter's 4.1%. Still, that sounds good, until you remember this: Employers only added 74,000 jobs in December -- one of the worst months in nearly three years. Stronger economic growth is supposed to equal more jobs. So what gives? It does appear that the normal relationship between jobs and GDP has broken down. In the first half of 2013, for instance, GDP growth was at 1.9% and employers added an...
  • US stocks sink; Dow dives 225 points on emerging-market concerns

    01/31/2014 6:48:57 AM PST · by John W · 58 replies
    cnbc.com ^ | January 31, 2014 | Kate Gibson
    U.S. stocks tanked on Friday, with investor sentiment slammed by increasing worries about trouble in emerging markets. "This is more of a geoeconomic kind of thing. The Friday dates plays into this, the end of the month plays into this, and it does appear emerging markets, one by one, will need to take additional central bank action over the next few days," said Jim Russell, senior equity strategist for U.S. Bank Wealth Management.
  • Citing Growth, Fed Again Cuts Monthly Bond Purchases

    01/29/2014 11:36:50 AM PST · by John W · 8 replies
    The New York Times ^ | January 29, 2014 | BINYAMIN APPELBAUM
    WASHINGTON — The Federal Reserve announced Wednesday another $10 billion cut in its monthly bond purchases in a statement that attributed the decision to “growing underlying strength in the broader economy.” The statement, published after a two-day meeting of the Fed’s policy-making committee, reflected the optimism of Fed officials that the economy is finally poised for faster growth after years of false starts and setbacks. It was the committee’s first unanimous decision since 2011. The Fed said it would expand its holdings of Treasury and mortgage-backed securities by $65 billion in February, down from $75 billion in January and $85...
  • The Hows and Whys of Gold Price Manipulation

    01/18/2014 5:34:02 PM PST · by logi_cal869 · 56 replies
    Institute for Political Economy ^ | 1/17/2014 | Paul Craig Roberts and Dave Kranzler
    The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them “too big to fail.” Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative Easing the prices of financial instruments on the banks’ balance sheets and in order to finance at low interest rates trillion dollar federal budget deficits associated with the long recession caused...
  • The Federal Reserve Is Making A Big Mistake

    01/08/2014 12:07:11 PM PST · by Patriotic1 · 16 replies
    Forbes ^ | 9/20/2013 | Richard Finger
    The Federal Reserve did something completely unpredicted on Wednesday; nothing. So called “tapering” of QE was indefinitely placed in deep freeze………until such time as the U.S. economy is more robust. Most asset classes shot up energetically. Both the S&P and the Dow closed at all-time highs. SNIP The question to be asked is did these asset classes all react rationally. Continuing to effectively print $85 billion per month of new money after months of telegraphing at least a modicum of reduction can only translate that our economy is frail and infirm, languid if you will. SNIP Up until ten years...
  • The Federal Reserve Exudes Growing Desperation

    12/13/2013 11:11:21 AM PST · by publius321 · 13 replies
    A Marketwatch column points out that the "Fed wants to exit QE but keep long-term rates low". This is as realistic as saying that "I want to get rich but I do not want to work". They cannot keep rates down without buying UNLESS the Treasury takes over, literally prints the money off their presses - then buys their bonds themselves at auction instead of the Federal Reserve buying. One of the things that keeps these scoundrels in the administration out of prison is that...
  • Banks look to charge for holding customers’ money, if Fed counters ‘lazy’ behavior

    11/26/2013 9:48:37 AM PST · by Red in Blue PA · 43 replies
    Bank customers could look forward to being charged to keep their money in U.S. banks. That’s the latest threat coming out of Wall Street, according to a report in the Financial Times, as financial institutions look to combat a possible interest rate cut from the Federal Reserve on its bank reserves. This latest potential step would be a hit to depositors, already earning close to zero interest on checking and savings accounts. But the banks say it’s a side effect of the Fed’s quantitative-easing strategy and its eventual tapering of its asset purchases of $85 billion a month, which has...
  • Is Janet Yellen Really Larry The Cable Guy? "Git 'er Done!" (Wants MORE QE)

    11/14/2013 6:28:12 AM PST · by whitedog57 · 5 replies
    Confounded Interest ^ | 11/14/2013 | Anthony B. Sanders
    Janet Yellen, nominated to be the next chairman of the Federal Reserve, signaled she will carry on The Federal Reserve’s unprecedented stimulus until she sees improvement in an economy that’s operating well below potential. Here is her prepared statement. “A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases. Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.” “Unemployment is still too high, reflecting a labor market and economy performing far short of their potential.” Of course, unemployment...
  • Ex-Fed official: 'I'm sorry for QE'

    11/13/2013 5:58:23 AM PST · by sr4402 · 9 replies
    Fast Money ^ | Tuesday, 12 Nov 2013 | 6:45 PM ET | Bruno J. Navarro
    "I can only say: I'm sorry, America," he wrote. "The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time."
  • Former Fed Quantitative Easer Confesses, Apologizes: "I Can Only Say: I'm Sorry, America"

    11/12/2013 6:32:25 AM PST · by Starboard · 169 replies
    Zero Hedge ^ | 11/12/2013 | Andrew Huszar
    The Fed keeps buying roughly $85 billion in bonds a month, chronically delaying so much as a minor QE taper. Over five years, its bond purchases have come to more than $4 trillion. Amazingly, in a supposedly free-market nation, QE has become the largest financial-markets intervention by any government in world history. And the impact? Even by the Fed's sunniest calculations, aggressive QE over five years has generated only a few percentage points of U.S. growth. Having racked up hundreds of billions of dollars in opaque Fed subsidies, U.S. banks have seen their collective stock price triple since March 2009....
  • SR 119: Fake US GDP

    11/09/2013 12:22:13 PM PST · by Attention Surplus Disorder · 6 replies
    YouTube ^ | November 08, 2013 | Bill Still
    Bill Still makes the case that given that QE injections ARE COUNTED in GDP growth, and 3Q GDP growth has been roughly $196 billion during the last quarter while QE injections are $85 billion per month or $255 billion. Meaning: The US actually shrunk $59 billion during the last quarter. http://www.youtube.com/watch?feature=player_embedded&v=qK6ftzkX7xc
  • Faber: Fed Might Hike QE to $1 Trillion a Month

    10/21/2013 7:50:18 AM PDT · by Nachum · 60 replies
    Money News ^ | 10/21/13 | Michael Kling
    The Federal Reserve will increase its monthly bond purchases not decrease them, says Marc Faber, publisher of the Gloom, Boom & Doom Report. "The question is not tapering. The question is at what point will they increase the asset purchases to say $150 [billion], $200 [billion], a trillion dollars a month," Faber told CNBC. The Fed is now buying $85 billion of Treasury and mortgage bonds a month in what's known as quantitative easing (QE). When the Fed first started buying long-term bonds, in what was called QE1, it initially said the program would last six months. But it started...
  • Some Traders Got [Fed QE] 'No Taper' Decision News Earlier

    09/24/2013 8:48:10 PM PDT · by edpc · 12 replies
    CNBC via Yahoo News ^ | 24 Sept 2013 | Eamon Javers
    In the wake of an unusual trading pattern after the Federal Reserve's decision to continue economic stimulus last week, Fed officials have contacted certain news organizations to discuss rules and procedures for the central bank's advance release of sensitive information, CNBC has learned. On Sept. 18, the Federal Reserve shocked the financial world with its decision not to scale back its level of support to the economy as most market participants expected. Financial markets reacted at the speed of light, pushing stocks dramatically higher in just moments. But it looks like the speed of light just wasn't fast enough for...
  • Mr. Bernanke Gets the Jones: Every time he wants to taper, he can't

    09/20/2013 5:29:07 AM PDT · by SeekAndFind · 13 replies
    New York Sun ^ | 09/20/2013
    Chairman Bernanke: “We could raise interest rates in 15 minutes if we have to. So there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation at the appropriate time. Now that time is not now.”Scott Pelley, CBS 60 Minutes: “You have what degree of confidence in your ability to control this?” “100%.”* * *No doubt that exchange of 2010 will go down as the most famous of Mr. Bernanke’s tenure as chairman of the Federal Reserve. It is the context in which to savor — if that is the word — the news...
  • Gold Climbs Nearly 5%

    09/19/2013 7:00:27 PM PDT · by TigerLikesRooster · 16 replies
    WSJ ^ | September 19, 2013 | MATT DAY and FRANCESCA FREEMAN
    COMMODITIES Updated September 19, 2013, 3:15 p.m. ET Gold Climbs Nearly 5% Futures Extend Post-Fed Rally Gains By MATT DAY and FRANCESCA FREEMAN NEW YORK—Gold futures rose nearly 5% on Thursday, extending the gains made after the Federal Reserve surprised investors by announcing it would stick to its bond-buying program. The bond purchases have pumped cash into the financial system, raising the specter of inflation or a weakened dollar. Some investors view gold as a hedge against either scenario. The most actively traded gold contract, for December delivery, rose $61.70, or 4.7%, to settle at $1,369.30 a troy ounce on...
  • Fed: No taper

    09/18/2013 11:13:08 AM PDT · by Hojczyk · 95 replies
    CNBC ^ | September 18, 2013 | Jeff Cox
    <p>An economy still stumbling toward recovery was not enough to sway the Federal Reserve, which defied market expectations Wednesday and said it will not begin pulling back on its monthly asset-purchasing program. Stocks surged on the news but bond yields were flat.</p>
  • Beginning of the End? (Like it or not, QE is coming to an end)

    08/20/2013 6:30:31 AM PDT · by SeekAndFind · 27 replies
    Alhambra Investment Partners ^ | 08/20/2013 | Joe Calhoun
    The stock market pulled back last week and we are now in the midst of a mild correction, down all of 3% from the all time highs set just a couple of weeks ago. It has been an extremely orderly retreat so far with the volatility index barely budging from its recent lows. The natural question is whether this is the start of a bigger correction, the start of a bear market or merely another buying opportunity in a bull run that is getting long in the tooth by historic standards. There were 33 bull markets from 1900 to the...
  • 30 Yr Treasury Auction: 2nd Lowest Bid to Cover Ratio Since February 2009 (Near Beginning of QE)

    08/08/2013 10:50:50 AM PDT · by whitedog57
    Confounded Interest ^ | 08/08/2013 | Anthony B. Sanders
    Today’s 30 year Treasury auction was similar to the 10 year auction from earlier this week. 30yraucr Specifically, the bid to cover ratio fell to the 2nd lowest point since February 2009. 30yrbcover February 2009 is near the beginning of QE. 04-qe-timeline Falling bid to cover reflects concerns about the Fed tapering (aka, removing the punch bowl). punchbowl
  • Chilling: Author Brad Thor Reveals the Extremely Powerful Agency behind new book ‘Hidden Order’

    07/14/2013 6:48:11 AM PDT · by opentalk · 30 replies
    The Blaze ^ | July 9, 2013 | Erica Ritz
    Author Brad Thor warned about the NSA surveillance state in his last book “Black List,” and in a recent interview with TheBlaze’s Jon Seidl, described the subject of his newest book as an organization “more secretive than the NSA, CIA, and some people claim more powerful than the United States government itself.” On Glenn Beck’s radio program Tuesday, coinciding with the book’s release date, Thor revealed the agency behind “Hidden Order”: the Federal Reserve.… When he peels back the layers, Thor said, Harvath discovers that the Fed “is doing things nobody in America could ever imagine could be done…” “And...
  • The Damage Bernanke Has Done To Every Major Asset Class Since May 22

    06/25/2013 8:18:40 PM PDT · by blam · 2 replies
    Buainess Insider ^ | 6-25-2013 | Matthew Boesler
    The Damage Bernanke Has Done To Every Major Asset Class Since May 22 Matthew BoeslerJune 25, 2013 When Federal Reserve Chairman Ben Bernanke failed to rebuff a suggestion during his May 22 congressional testimony that the central bank could begin tapering back bond purchases in September, the stock market finally began to stumble. A rapid rise in U.S. Treasury yields had caused volatility in global markets since the beginning of May, but it wasn't until Bernanke's testimony that equities started to show weakness. Since then, equity investors around the world have faced increased volatility thanks to concerns that slowing of...
  • Big Changes In Troubled China

    06/25/2013 5:14:42 PM PDT · by blam · 10 replies
    TDR ^ | 6-25-2013 | Peter Coyne
    Changes In Troubled China Peter Coyne June25, 2013. “When will America’s economy finally stop limping along?” asks Steve Hargreaves this morning for CNN Money.Next year, 2014, he says with a degree of confidence we find puzzling at bestAccording to Hargreaves, “economists foresee a convergence of several factors that could finally kick this recovery into high gear.” Those factors include: a patchwork of federal tax hikes and so-called spending cuts, rebounding home prices adding to consumer confidence and coming clarity over how the Dodd-Frank financial reform and Obamacare laws will affect businesses. Because as all “economists” know… economic growth comes...
  • Has the Great Financial Crisis Finally Arrived?

    06/22/2013 9:29:41 PM PDT · by blam · 14 replies
    The Market Oracle ^ | 6-22-2013 | Graham Summers
    Has the Great Financial Crisis Finally Arrived? Stock-Markets / Credit Crisis 2013 June 23, 2013 - 05:33 AM GMT By: Graham Summers The technical damage from yesterday’s bloodbath was severe. Spain, which lead the “Europe is saved” party from the lows last year has just taken out its trendline. So much for the “crisis is over” proclamations. We’re heading back down in a big way. The S&P 500 has also taken out its trendline. QE Forever is dead and buried. What will hold the market up now? Copper is indicating that the entire post-2009 “recovery” is ending. We’re moving back...
  • KRUGMAN: The Fed May Have Just Made A Historic Mistake, And Done More Damage Than It Realizes

    06/22/2013 6:04:33 PM PDT · by blam · 43 replies
    Business Insider ^ | 6-22-2013 | Joe Weisenthal
    KRUGMAN: The Fed May Have Just Made A Historic Mistake, And Done More Damage Than It Realizes Joe WeisenthalJune 22,2013REUTERS/Jason ReedThe most important story in the world is the change of direction in US interest rates, which coincides with the change in tone out of the Federal Reserve, which on Wednesday indicated that so long as its economic projections come to pass, it plans to slowdown on Quantitative Easing later on this year, with an eye towards totally ceasing bond purchases sometime in 2014. The markets puked on the news, and interest rates shot up, a move that was exacerbated...
  • End of QE? - I don't buy it.

    06/22/2013 2:06:14 PM PDT · by BfloGuy · 16 replies
    The Cobden Centre ^ | 6/22/2013 | Detlev Shlichter
    End of QE? – I don’t buy it By Detlev Schlichter, on 22 June 13 A new meme is spreading in financial markets: the Fed is about to turn off the monetary spigot. US Printmaster General Ben Bernanke announced that he might start reducing the monthly debt monetization program, called ‘quantitative easing’ (QE), as early as the autumn of 2013, and maybe stop it entirely by the middle of next year. He reassured markets that the Fed would keep the key policy rate (the Fed Funds rate) at near zero all the way into 2015. Still, the end of QE...
  • Tapering The Taper Talk ("Fed's next announcement will be to increase, not diminish QE")

    06/21/2013 5:07:43 PM PDT · by blam · 18 replies
    EuroPacific Capital Inc ^ | 6-21-2013 | Peter Schiff
    Tapering The Taper TalkPeter Schiff Friday, June 21, 2013 As usual the Federal Reserve media reaction machine has fallen for a poorly executed head fake. It has fallen for this move many times in the past, and for its efforts, it has tackled nothing but air. Yet right on cue, it took the bait once more. Somehow the takeaway from Wednesday's release of the June Fed statement and Chairman Ben Bernanke's press conference was that the central bank is likely to begin scaling back, or "tapering," its $85 billion per month quantitative easing program sometime later this year, and that...
  • JIM O'NEILL: We Could See A Bond Crash

    06/14/2013 10:31:55 AM PDT · by blam · 12 replies
    Business Insider ^ | 6-14-2013 | &#61517;Steven Perlberg
    JIM O'NEILL: We Could See A Bond Crash Steven Perlberg Jun. 14, 2013, 12:33 PM As the market speculates on when the Fed will begin to slow its quantitative easing program, former Goldman Sachs Asset Management chairman Jim O'Neill isn't alone in believing a taper would mean turbulence for financial markets. But for O'Neill, it would also "not be a stretch" to see 5% yields on the 10-year Treasury, reports Bloomberg. Given the 10-year's current 2.11% yield, that would imply a big sell-off in the bond market. O'Neill talked about that — and his prediction for a bond crash —...
  • ANALYST: What We Are Seeing Is A Recalibration Of The Cost Of Money

    05/27/2013 10:24:25 AM PDT · by blam · 10 replies
    Business Insider ^ | 5-26-2013 | Joe Weisenthal
    ANALYST: What We Are Seeing Is A Recalibration Of The Cost Of Money Joe Weisenthal May 27, 2013, 7:02 AM Part of the reason people are nervous about Japan is the potential for a disturbance caused by an increase in long-term government bond yields. The fear is that ultra-aggressive easing will create inflation, leading to an interest rise, creating havoc for banks who own so much government debt. And in the US, all the concern is about the so-called "Taper" the winddown of QE that may begin this year. In an email to clients, SocGen's Kit Juckes writes: What we...
  • U.S. Economy Drowning In A Liquidity Trap?

    05/26/2013 1:09:04 PM PDT · by blam · 108 replies
    The Market Oracle ^ | 5-26-2013 | Frank Shostak
    U.S. Economy Drowning In A Liquidity Trap? Economics / US Economy May 26, 2013 - 06:33 PM GMT By: Frank Shostak Bruce Bartlett recently lamented in The New York Times that given the current state of economic affairs we need more Keynesian medicine to fix the US economy. According to Bartlett, the core insight of Keynesian economics is that there are very special economic circumstances in which the general rules of economics don’t apply and are in fact counterproductive. This happens when interest rates and inflation rates are so low that monetary policy becomes impotent; an increase in the money...
  • FOMC MINUTES: MANY SAID MORE PROGRESS NEEDED BEFORE SLOWING QE

    05/22/2013 11:19:31 AM PDT · by blam · 17 replies
    TBI ^ | 5-22-2013 | Matthew Boesler
    <p>UPDATE: The minutes from the Federal Reserve's April 30-May 1 FOMC meeting on monetary policy are out.</p> <p>The main headline: many on the Committee said more progress is needed before tapering back any bond purchases under the Fed's quantitative easing program.</p>
  • U.S. Economy Staring Into The Abyss! Only Gold Is Worth Buying

    05/13/2013 5:08:26 AM PDT · by blam · 35 replies
    The Market Oracle ^ | 5-13-2013 | Robert M Williams
    U.S. Economy Staring Into The Abyss! Only Gold Is Worth Buying Stock-Markets / Financial Markets 2013May 12, 2013 - 07:38 PM GMT By: Robert M Williams "Behind every great fortune there is a crime." - Honore de Balzac (1799-1850) A number of important figures are now talking about the possibility of increasing the US Federal Reserve’s quantitative easing given the “decline in inflation.” In March we heard comments from Fed Presidents Eric Rosengren and Narayana Kocherlakota calling for QE well into 2014 while Chicago Fed President Richard Evens thought the Fed needed to do more. Then in April the St....
  • Is The Fed Going Cold Turkey After Going Wild Turkey? Housing And The Stock Market

    05/12/2013 9:13:10 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 05/12/2013 | Anthony B. Sanders
    According to the Wall Street Journal, The Fed is planning to dial back the incredible monetary stimulus. But it won’t go “cold turkey.” We can always rely on The Dallas Fed’s Richard Fisher for a pithy comment: “I don’t want to go from wild turkey to cold turkey,” Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview Friday. “I think we ought to dial it back.” Mr. Fisher is part of a contingent of Fed hawks who are wary of the central bank’s easy-money policies. After all, Central Banks have lowered interest rates 511 times...
  • FED: WE MAY DO MORE

    05/01/2013 4:26:40 PM PDT · by blam · 11 replies
    TBI ^ | 4-1-2013 | Sam Ro
    FED: WE MAY DO MORE Sam RoMay 1, 2013, 2:10 PMThe Federal Reserve has completed its Federal Open Market Committee meeting, and it has just published its statement. For now, the Fed is on hold with its month purchases of $85 billion worth of bonds in its efforts to keep interest rates low. However, one of line that was new this time around was this: The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes. In determining the size, pace, and composition...
  • EL-ERIAN: It's Official — The World Needs To Worry About The Damage Caused By QE

    04/20/2013 10:38:42 AM PDT · by blam · 7 replies
    TBI ^ | 4-20-2013 | Mohamed El-Erian
    EL-ERIAN: It's Official — The World Needs To Worry About The Damage Caused By QE Mohamed El-ErianApril. 20, 2013, 10:05 AMIt is now official: "We will be mindful of unintended negative side effects stemming from extended periods of monetary easing." This is how the G-20, the most important country grouping today, put it in the communique they issued Friday night. But what exactly are they talking about? It all started with the difficulties that most advanced economies faced in generating adequate growth and employment after the 2008 global financial crisis. Rather than catalyze the political system into action, this "new...
  • After Fumbled Release, Fed Minutes Pay Lip Service To QE Risks

    04/10/2013 6:37:45 AM PDT · by John W · 16 replies
    forbes.com ^ | April 10, 2013 | Steve Schaefer
    The Federal Reserve released the minutes from its March meeting before the opening bell Wednesday morning, hours earlier than planned after the news was inadvertently sent to Capitol Hill staffers at some point Tuesday. The biggest news out of the release was the possibility that the central bank could start paring back its quantitative easing efforts by the summertime, and not necessarily because the economic recovery has firmed up. Minutes from the March 19-20 policy meeting reinforced comments from recent statements out of the Fed that extraordinary monetary policy will remain necessary until substantial improvement in the economy, but also...
  • US Treasury chief urges EU to ease off austerity

    04/08/2013 4:08:03 AM PDT · by John W · 20 replies
    AP via Yahoo news ^ | April 8, 2013 | Juergen Baetz
    BRUSSELS (AP) — European countries should ease off their austerity and adopt more growth-friendly policies, U.S. Treasury Secretary Jacob Lew said Monday as he kicked off a series of meetings with the region's top leaders. America's biggest trading partner and the world's largest economic bloc has entered the fourth year of its debt crisis, which has plunged many of the 27 EU governments into recession. The U.S. administration hopes Europe will relent in its focus on debt reduction, which has been hurting growth through spending cuts and tax increases. Lew, who became treasury secretary in February, started his first official...
  • The Fed Is Quantitatively Easing Americans Out of Their Jobs

    04/08/2013 6:24:11 AM PDT · by SeekAndFind · 18 replies
    RCM ^ | 04/08/2013 | Louis Woodhill
    As the months go by, it is becoming clear that the Federal Reserve's "QE3" program, which is supposed to be "doing something" about unemployment, is having the exact opposite effect. We can only wonder how long it will take Fed Chairman Ben Bernanke to realize this. Friday's "Employment Situation" report from the Bureau of Labor Statistics (BLS) was really, really, really bad. The reported 0.1 percentage point decline in the "headline" unemployment rate (from 7.7% to 7.6%) fooled no one. Total employment actually fell by 206,000. The only reason that the reported unemployment rate went down was because 496,000 Americans...
  • Quantitative confiscation: What’s happening in Cyprus already is happening here

    04/04/2013 6:35:55 AM PDT · by dirtboy · 29 replies
    Trib Live ^ | 3/30/13 | Thomas Sowell
    The decision of the government in Cyprus to simply take money out of people's bank accounts there sent shock waves around the world. People far removed from that small island nation had to wonder: “Can this happen here?” The economic repercussions of having people feel that their money is not safe in banks can be catastrophic. Banks are not just warehouses where money can be stored. They are crucial institutions for gathering individually modest amounts of money from millions of people and transferring that money to strangers whom those people would not directly trust... [snip] One of the big differences...
  • M&T Bank CEO Wilmers Rails Against 'Astronomical' Banker Pay

    03/08/2013 1:32:55 PM PST · by haffast · 3 replies
    Fox News Business ^ | March 07, 2013 | Dow Jones Newswires
    M&T Bank Corp.'s (MTB) Chief Executive Robert Wilmers railed against the "astronomical" pay of his fellow bank executives, calling on them to rein in their compensation while singling out the "Big Six" banking "oligopoly" for its outsized paychecks and serial regulatory lapses that continue to shade the public perception of banks. Mr. Wilmers, who has led M&T for 30 years, issued his stark criticisms in his annual shareholder letter, in which he also took aim at "unnecessarily complex" accounting and new banking rules that amount to "misguided regulatory chemotherapy." snip While the Big Six are not named in the letter,...
  • Proof the Fed is juicing the markets

    03/05/2013 4:21:41 AM PST · by MeneMeneTekelUpharsin · 22 replies
    Fox News ^ | 5 March 2013 | Elizabeth McDonald
    Charles Brady, senior editor of the FOX Business Network, has put together a remarkable chart that clearly shows the Federal Reserve’s monetary easing policies are not going into the U.S. economy, but instead into the stock market. The chart here compares the Dow Jones Industrial Average with the St. Louis Federal Reserve Bank’s adjusted monetary base. It shows the effect of Fed purchases of mortgage-backed and Treasury securities from Fed dealers, whereby the Federal Reserve buys $85 billion total every month from the big banks, hastening the growth in the Fed’s balance sheet to more than $3 trillion. The central...
  • In The Bubble of Stupidity

    03/01/2013 5:11:14 PM PST · by Starman417 · 1 replies
    Flopping Aces ^ | 03-01-13 | James Raider
    The brilliant and colourful English Lit professor and occasional philosopher Marshall McLuhan presciently wrote, “Politics will eventually be replaced by imagery. The Politician will be only too happy to abdicate in favour of his image, because the image will be much more powerful than he could ever be.”McLuhan passed away in December of 1980, yet he seems to have had the capacity to perceive so many vacuous celebrity politicians which today fill our electoral landscape - empty vessels which float to re-election on electoral carpets of wishful thinking and ignorance. With an uninquisitive media abstaining from accurate reporting, the misinformed...
  • If Bernanke Has a Great Inflation Record, Then Kim Jong-un Is the World's Tallest Man

    02/28/2013 6:55:36 AM PST · by SeekAndFind · 3 replies
    RCM ^ | 02/28/2013 | John Tamny
    In an exchange with Bob Corker on Tuesday in which the Senator called Ben Bernanke an inflation dove, the Chairman of the Federal Reserve responded that "my inflation record is the best of any Federal Reserve chairman in the postwar period." For the readers who presume this article to be satire, the link here will prove otherwise. Bernanke, the walking, tripping, living definition of systemic risk now views himself as a top level inflation fighter in addition to being the world's foremost Great Depression expert, bank savior, and so many other things. And it's President Obama who has the huge...
  • The ‘End’ Of QE – Hype Or Tripe?

    02/24/2013 8:11:12 AM PST · by blam · 4 replies
    TMO ^ | 2-24-2013 | Andy Sutton
    The ‘End’ Of QE – Hype Or Tripe? Interest-Rates / Quantitative EasingFebruary 23, 2013 - 07:32 PM GMT By: Andy Sutton I am going to say right up front that there is going to be quite a bit of sarcasm in this essay. I say this simply because of the ludicrous nature of our marionette-esque talking heads in the mainstream financial press in this country. They are truly amazing, taking molehills and making mountains out of them and vice versa. In one segment telling us that there in fact will be no criminal charges against anyone involved in the HSBC...
  • A Critical Turning Point In American History

    02/11/2013 11:20:37 AM PST · by Starman417 · 1 replies
    Flopping Aces ^ | 02-11-13 | James Raider
    We progress, marching forward leaving behind us a trail of yesterdays, filled with events large and small, assembling memories, but some of the more momentous occurrences rise to a superior level which we include in our collective “history.” In that wake of our advance some of those momentous waves swell further, rising to become events that only hindsight can identify as pivotal moments in that shared recollection. UTOPIA Such hindsight is not always 20/20.  We may be aware of the events as they unfold, but their significance and impact on our march forward is not always self evident and years...
  • QE's Folly: Diversion And Destruction

    02/04/2013 10:09:11 AM PST · by SatinDoll · 9 replies
    The Market-Ticker ^ | Feb. 4, 2013 | Karl Denninger
    We got a problem here folks, and it's going to lead to the next crash -- and sooner than you think. First, let's talk about the impact of QE on companies. The common mantra is that it makes it "easier" for firms to borrow money. The problem is that borrowing, in general, is a destructive act as you must pay back said borrowing with interest -- no matter how small. The bigger problem, however, is that long-established businesses have obligations that were all contracted with the expectation of lending other people money and earning a spread on it, such as...