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Keyword: qe2

Brevity: Headers | « Text »
  • Everything you ‘know’ about the Fed is wrong

    04/24/2013 12:04:20 PM PDT · by Ernest_at_the_Beach · 15 replies
    Marketwatch ^ | April 24, 2013, 10:53 a.m. EDT | By Mark Dow and Michael Sedacca
    Commentary: 5 misconceptions about the effects of QE and monetary policyNEW YORK (MarketWatch) — Few would still argue against the assertion that the Federal Reserve has been central to the financial stabilization and economic recovery from the 2008 crisis. It fixed the plumbing and are now trying to incentivize animal spirits to pump water through the pipes. The debate has now migrated to exit strategies and whether the accumulating side effects of exceptional monetary accommodation outweigh incremental benefits. Read Minyanville’s “The Givers and Takers of the Boston Bombings.”
  • Destruction of the US Dollar

    10/15/2012 2:04:32 PM PDT · by Tolerance Sucks Rocks · 10 replies
    Patriot Action Network ^ | October 14, 2012 | Roger O'Daniel
    The picture below shows $15 trillion dollars worth of $100 bills on $10 million dollar pallets stacked on top of each other over an area that is one third larger than a regulation football field. An electronics van is parked between the stack and the Statue of Liberty. A single $100 million dollar pallet rests in front of the truck’s cab. See it?Recently, I reported that the Federal Reserve Bank (FED) secretly gave ten trillion dollars of interest-free loans to over a dozen European banks to shore up the Euro and keep them financially solvent. I later found out that...
  • Santelli's Rant on More Quantitative Easing (calls it counterfeiting)

    08/27/2012 9:42:31 AM PDT · by Lorianne · 2 replies
    CNBC ^ | 27 August 2012 | Rick Santelli
    Video Transcript: other reasons, too, which we'll talk about later. cme group, rick santelli. looking at some long-term effects of qe. indeed, there is another name for qe. and we'll get to that momentarily. one of the great things about the human race is they can assimilate and accommodate. we talked about the swiss psychologist in the 1930s, the 1960s, really doing a lot of work here. what it simply means is that we're very adaptable as humans. i think quantitative easing fits into that. it's something that really doesn't seem like it's the answer for problems, printing more money,...
  • Big Ben may be renamed to honor queen

    03/24/2012 4:39:04 AM PDT · by JoeProBono · 34 replies · 2+ views
    upi ^ | March. 24, 2012
    LONDON, -- A group of British legislators want to rename one of London's most famous landmarks, Big Ben, to honor Queen Elizabeth II. In an early day motion, 23 members of Parliament said renaming the east tower of the Houses of Parliament the Elizabeth Tower would be an appropriate gesture in her Diamond Jubilee Year, The Guardian reported. They pointed out that the west tower was named after Queen Victoria in 1860 and paid tribute to the reigning queen's "energy, wisdom and grace." Most of the group are Conservatives, although Jack Straw, a Labor foreign secretary, endorsed the proposal. While...
  • Under Obama, Price of Gas Has Jumped 83 Percent, Ground Beef 24 Percent, Bacon 22 Percent

    01/24/2012 4:25:59 PM PST · by OPS4 · 41 replies
    CNS news ^ | 1/24/12 | Christopher Goins
    So far, during the presidency of Barack Obama, the price of a gallon of gasoline has jumped 83 percent, according to data from the Bureau of Labor Statistics. (AP Photo) During the same period, the price of ground beef has gone up 24 percent and price of bacon has gone up 22 percent. When Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79, according to the BLS. (The figures are in nominal dollars: not adjusted for inflation.) Five months later in June, unleaded gasoline was $2.26 per gallon,...
  • Need Fed info

    09/13/2011 11:17:38 PM PDT · by chuckles · 7 replies
    vanity | 09-14-2011 | chuckles
    I've been investing for years, but never really studied bonds. I've never been interested. I got excited about the Fed several years ago, but never really followed up and studied them. It always seemed strange to me that non government banks could print money and have so much power, but hey, they have done it for years and just a handful of people get exercised about it, so it must be OK. Now it comes to me that QE2 was Bernanke buying $600 billion in treasuries with printed money with the sole purpose of keeping rates down while the economy...
  • "but this recession would have been a depression had we not done TARP,Porkulus, QE1, QE2...etc"

    08/29/2011 8:43:32 AM PDT · by WOBBLY BOB · 29 replies
    me ^ | 8-29-11 | wobbly bob
    this is the typical response all my John Huntsman lovin' , Obama votin' friends have whenever talking up the economy. what say you?
  • Sarah Palin on Fox News: 'More power to Rick Perry'

    08/18/2011 2:14:16 PM PDT · by smoothsailing · 124 replies
    Politico ^ | 8-18-2011 | Alexander Burns
    Palin: 'More power to Rick Perry' By: Alexander Burns August 18, 2011 03:16 PM EDT Sarah Palin, who said once again today that she's still open to a 2012 presidential bid, tells Fox News's Megyn Kelly that she's on Team Perry when it comes to the Federal Reserve: “More power to Rick Perry for calling it like he saw it, and the president in his typical reactionary way, did elevate Rick Perry and what it is that he had to say. And what Rick Perry had to say is what I wrote about 10 months ago, about quantitative easing...
  • Big Government’s Big Spending Has Boosted Inflation and Killed 3.5 Million Jobs

    08/15/2011 8:58:36 PM PDT · by Tolerance Sucks Rocks · 6 replies · 1+ views
    Conservative Action Alerts ^ | August 12, 2011 | Chuck Roger
    Rising prices are no surprise to anyone who has been following the actions of Ben Bernanke’s Fed. Two rounds of “quantitative easing” injected more than $2.3 trillion into bank reserves, and thus to some extent into the economy. The more money chasing products and services, the more those products and services cost.Bernanke’s thinking was that by pumping trillions into the financial system, he could spur lending, investing, and spending via lower interest rates, and thus goose the economy. But the strategy not only hasn’t improved the economy, it has also had two major bad side-effects. Increased inflation is one side-effect,...
  • Analysis: QE3 may do more harm than good

    07/27/2011 5:20:58 AM PDT · by mlocher · 5 replies
    Reuters via Fidelity.com ^ | July 27, 2011 | Natsuko Waki
    LONDON (Reuters) - There may be a point at which global investors get indigestion from U.S. money printing. A fresh round of U.S. monetary easing may even do more harm than good for long-term investors as another flood of easy money into fast-growing emerging economies risks refueling oil and commodity price inflation, sapping consumption and growth. Prospects for a third round of the Federal Reserve's quantitative easing program (QE3) grew this month after Chairman Ben Bernanke said the central bank was prepared to ease further if economic growth and inflation falter again. Nearly in one in two fund managers surveyed...
  • The Gold Standard, Printing Money and the Federal Reserve

    07/24/2011 12:40:22 PM PDT · by Tolerance Sucks Rocks · 32 replies
    Nolan Chart ^ | July 23, 2011 | James Luko (centrist)
    The media is hyping and harping on the issue that the Federal Reserve will resort to PRINTING more money to feed another round of “quantitative easing.” This is a wholly incorrect fact. The Department of Treasury prints our "paper currency” NOT the Federal Reserve. “Quantitative easing” is the Federal Reserve increasing bank reserves- thereby creating new money electronically- but, for a stated purpose of “stimulating” the economy and NOT for paying government debt. This is a salient point that the media mixes up, assuming and misinforming the public that QE is paying for increased government debts. QE serves a fundamental...
  • A $600 Billion Failure

    07/09/2011 6:43:10 AM PDT · by Kaslin · 47 replies
    Townhall.com ^ | July 9, 2011 | Bob Beauprez
    Last November, the Federal Reserve Bank announced that it was ramping up the printing presses one more time in an effort to "stimulate" the economy.   The plan was called Quantitative Easing-2, QE2 – a high-falutin name that suggested most of us commoners couldn't possibly understand it, nor should we even ask questions.  QE2 was the $600 billion sequel to the first big run that the Fed had taken at jolting the economy back to life.  When added to QE1, $2.3 trillion was pumped into the economy; a completely unprecedented effort.   The flood of newly printed cash from QE2...
  • Fed May Buy $300 Billion in Treasuries After QE2 (Link only)

    06/27/2011 6:01:20 AM PDT · by Qbert · 43 replies
    Bloomberg via Yahoo Finance | June 27, 2011 | Daniel Kruger and John Detrixhe
    http://finance.yahoo.com/news/Fed-May-Buy-300-Billion-in-bloomberg-1457319130.html;_ylt=A0wNc9xWeQhOxdEAHQ.7YWsA;_ylu=X3oDMTE1cGNxaDl2BHBvcwM2BHNlYwN0b3BTdG9yaWVzBHNsawNmZWRtYXlidXkzMDA-?x=0&sec=topStories&pos=3&asset=&ccode=
  • Fed to end bond-buying program amid worsening economic forecasts

    06/22/2011 1:24:35 PM PDT · by freespirited · 10 replies
    LA Slimes ^ | 06/21/11 | Don Lee
    Reporting from Washington— Amid increasing political pressure and turbulent global economic conditions, the Federal Reserve is letting its massive bond-buying program expire in days without a new initiative to prop up the American economy –- even as the central bank downgraded its economic assessment to reflect the sputtering recovery. The Fed, upon concluding its two-day monetary policy meeting, said Wednesday it would keep a key short-term interest rate at near zero for the foreseeable future to support the economy. But policymakers agreed to let lapse a $600-billion program to buy U.S. Treasury bonds at the end of this month, as...
  • Fed to end QE2 as it signals economic worries

    06/22/2011 9:55:24 AM PDT · by Free Vulcan · 26 replies
    Marketwatch ^ | 6.22.11 | Greg Robb
    WASHINGTON (MarketWatch) — The Federal Reserve on Wednesday said it was surprised by the recent weakness in the economy but that the recovery would pick up later this year as it kept interest rates at historic lows and said a controversial bond buying program would end as planned. The Federal Open Market Committee of the Fed said the moderate pace of growth and the weaker labor market were weaker than expected. The FEd said it expects inflation to subside as past energy prices and other commodity prices moderate. The statement came as the FOMC said it was shifting policy to...
  • ZeroHedge: Fed's QE2 money-printing "stimulus" was stealth European bank bailout

    06/13/2011 6:00:13 AM PDT · by quesney · 55 replies
    In summary, instead of doing everything in its power to stimulate reserve, and thus cash, accumulation at domestic (US) banks which would in turn encourage lending to US borrowers, the Fed has been conducting yet another stealthy foreign bank rescue operation, which rerouted $600 billion in capital from potential borrowers to insolvent foreign financial institutions in the past 7 months. QE2 was nothing more (or less) than another European bank rescue operation!
  • Even Bernanke Can't Deny That Obama's "Recovery" Is Bad

    06/07/2011 1:58:20 PM PDT · by JohnRLott · 31 replies
    Fox News ^ | June 7, 2011 | John R. Lott Jr.
    Federal Reserve chairman Ben Bernanke couldn't deny the obvious in his speech Tuesday in Atlanta. The economy is bad, with Obama’s “recovery” is setting records for being anemic and the unemployment stuck above 9 percent. Almost 5 million Americans have completely given up looking for work and left the labor force since the "recovery" that started in June 2009. GDP growth the seven quarters into the Obama recovery has averaged an annual rate of only 2.8 percent, a fraction of the 4.6 percent average growth during recoveries since 1970. And this recovery would have been even worse if the Federal...
  • Fed's QE2 Policy Has Failed To Lift Real Wages

    06/07/2011 7:22:41 AM PDT · by Slyscribe · 12 replies
    Investor's Business Daily ^ | 6/6/2011 | Jed Graham
    The Federal Reserve's current round of asset purchases, due to expire June 30, is being bookended by economic soft patches. A logical question is whether the central bank's $600 billion in Treasury buys merely provided a short-term artificial boost. Wild cards from Japan to the Middle East make it impossible to judge with certainty if the Fed's latest aggressive efforts have failed. But the most telling data point — no gain in real private-sector wages —
  • Jobs and factory slowdown pile on recovery fears

    06/01/2011 2:16:35 PM PDT · by NormsRevenge · 19 replies
    Yahoo ^ | 6/1/11 | Leah Schnurr - Reuters
    NEW YORK (Reuters) – U.S. companies hired far fewer workers than expected in May and output in the manufacturing sector slowed to its lowest level since 2009, adding to concerns that the U.S. recovery is running out of steam. Economists slashed their forecasts for Friday's payrolls report, considered the best barometer of the world's biggest economy, after private-sector job growth tumbled to just 38,000, its lowest level in eight months. Wednesday's reports were the latest signals that economic growth remained sluggish in the second quarter after hitting a weak spot in the first months of the year. "It fits very...
  • President Ford Toasts Queen Elizabeth

    05/25/2011 11:16:59 AM PDT · by ml/nj · 29 replies
    The "bumbling" President Ford apparently knew that the toast is supposed to end with the words, "the Queen." It is interesting to watch the Queen's reaction in this video and compare it with the one she had yesterday. (Video at link) ML/NJ
  • Dinner for 171! The Queen Treats The Obamas To A State Banquet [Pics in URL]

    05/24/2011 6:36:13 PM PDT · by Steelfish · 54 replies
    Daily Mail (UK) ^ | May 24, 2011 | JESSICA SATHERLEY
    Dinner for 171! The Queen Treats The Obamas To A State Banquet... and Invites A Few Of Their Hollywood Friends By JESSICA SATHERLEY 25th May 2011 After a long day of public appearances, President Obama and US First Lady Michelle were treated to a state banquet at Buckingham Palace, hosted by the Queen tonight. The star-studded banquet saw 171 guests arrive, including Tom Hanks, Kevin Spacey and Tim Burton, who dined on lamb, roast potatoes and vanilla Charlotte. Also at Her Majesty’s banquet in honour of the Obamas were David Cameron, Nick Clegg and Boris Johnson. Cheers! The Queen toasts...
  • Queen on first state visit to Republic of Ireland

    05/17/2011 10:37:57 AM PDT · by mgstarr · 16 replies
    BBC ^ | 5/17/11 | Staff
    The Queen is set to begin the first visit to the Republic of Ireland by a British monarch. President Mary McAleese will formally welcome the Queen at her Dublin home. King George V was the last reigning monarch to visit the country, in 1911, when what is now the Republic was then part of the UK. The Queen was invited to visit by President McAleese, who will formally welcome the monarch at Aras an Uachtarain, her home in Dublin's Phoenix Park. The president told state broadcaster RTE it was "an extraordinary moment in Irish history - a phenomenal sign and...
  • I just Got Back From The Grocery Store($4 For A Gallon of Milk)

    05/15/2011 5:13:18 PM PDT · by Dubya-M-DeesWent2SyriaStupid! · 308 replies
    The meats were like a bad joke gone bad. $7-10 for a small package of chicken breasts. I got enough food for a week and it was $107. The cashier lady told me some woman (when she noticed) milk at $4 a gallon asked if there was s milk shortage. Are people this stupid? I am truly afraid for this country in so many ways and as the cashier lady said she told the ditz lady it will get far worse before it gets better. And the cashier was in her 20's and she figured this out- so there is...
  • Why Growth is Dead

    05/14/2011 5:13:40 AM PDT · by Heuristic Hiker · 25 replies
    Financial Sense ^ | 5/12/2011 | Chris Martenson
    Time to Prepare for the Coming Rout The end of the second round of quantitative easing (QE II) is going to be a complete disaster for the paper markets -- specifically commodities, stocks, and then finally bonds, in that order, with losses of 20% to 50% by the end of October. The only thing that will arrest the plunge will be QE III, although we should remain alert to the likelihood that it will be named something else in an attempt to obscure what it really is. Perhaps it will be known as the "Muni Asset Trust Term Liquidity Facility"...
  • Analyst: Aggregate debt drove economic damage in Great Recesssion

    05/09/2011 11:31:46 AM PDT · by Nachum · 4 replies
    hot air ^ | 5/9/11 | Ed Morrissey
    In response to the Great Recession, the US government has gone on a spending spree in the hope of using Keynesian stimulus to restart the economy. However, according to a new analysis by Dr. Polina Vlasenko at the American Institute for Economic Research, that approach may make us even more vulnerable to future recessions. The amount of economic damage done to Western economies by the downturn directly relates to the aggregate debt in each economy as a percentage of GDP, she argues — and Japan and the Eurozone paid a steep price for their public and private debt. From the...
  • How QE2 Has Changed Everything

    05/04/2011 4:22:04 PM PDT · by blam · 15 replies
    The Daily Reckoning ^ | 4-402011 | Bill Bonner
    How QE2 Has Changed Everything By Bill BonnerApril 4, 2011 05/04/11 Baltimore, Maryland – Monday was a no-action day on Wall Street. Tuesday was dead too. Except that gold dropped $16. The killing of Osama bin Laden was supposed to raise prices. Especially the price of the dollar. The buck has been going down for 3 years. It’s now within a few cents of its all time low, registered back in the ’70s. We were prepared to advocate more killing, maybe even mass murder, if it would lower the unemployment rate…but the ‘killing lift’ was short lived. It lasted only...
  • Bernanke to Press: Not enough Progress to Change Course

    04/28/2011 12:48:08 PM PDT · by Wuli · 15 replies
    NewsMax ^ | April 27, 2011 | Andrew Packer
    It was a news conference held by a central banker, full of empty words and invented phrases, signifying nothing new. A politician couldn’t have done better. [snip] Federal Reserve Chairman Ben Bernanke used this news conference to affirm the Fed’s outlook on the economy, nothing [noting] the need to keep interest rates near zero for “an extended period.” [snip]
  • Fed holds rates steady, QE2 to end on schedule

    04/27/2011 10:14:31 AM PDT · by demsux · 41 replies
    Marketwatch ^ | 4/27/11 | By Greg Robb
    WASHINGTON (MarketWatch) - The Federal Reserve's Federal Open Market Committee on Wednesday left its key interest rate at an historic low range of 0% to 0.25% and said its $600 billion bond-buying program would end as scheduled on June 30. Inflation has picked up and the Fed now says the economic recovery is proceeding at "a moderate pace," but the central bank still said the inflation pickup will be temporary and the jobs market is still a concern. The decisions were widely expected. The FOMC made only few changes to the language of the policy statement it issued in March...
  • Sarah Palin & the Vanishing Sphere: Fallout from dwindling private sector makes for easy prophecy

    04/26/2011 1:17:11 PM PDT · by 2ndDivisionVet · 19 replies
    Human Events ^ | April 26, 2011 | John Hayward
    The New York Sun has an article today called “Sarah Palin for the Fed?” in which they discuss how the former governor of Alaska and 2008 vice-presidential candidate has been running rings around all of Barack Obama’s high-priced, high-powered, ideologically impeccable financial men: “The big question as Chairman Bernanke gets set for his first quarterly press conference is how Sarah Palin was able to figure out sooner than everyone else that the Federal Reserve’s campaign of quantitative easing wouldn’t work. Disappointment in the Fed’s policies is being reported this morning at the top of page one of the New York...
  • As Clock Ticks on Effort, Some See a Round 3

    04/26/2011 6:44:32 AM PDT · by throwback · 7 replies
    WSJ ^ | APRIL 25, 2011 | By JONATHAN CHENG And TOM LAURICELLA
    "QE2" is not even in drydock, yet some money managers are preparing for the christening of "QE3." Investors appear to expect the Federal Reserve to wind down in June its extraordinary efforts to support the economy known as quantitative easing—currently in its second installment and therefore referred to as QE2. But a handful say the financial markets and the economy still aren't strong enough to stand on their own. They argue that, soon after QE2 ends, the economy, the jobs market and asset prices will stumble. The housing market, they say, is still struggling and may founder further without the...
  • Sarah Palin keeps getting everything right

    04/25/2011 9:19:47 PM PDT · by 2ndDivisionVet · 31 replies
    PJ Tatler ^ | April 25, 2011 | Bryan Preston
    For a silly hick snowbilly who doesn’t know anything, whom loving and tolerant liberals call a “special needs case” in honor of the new civility, Sarah Palin is establishing a track record on the issues that is, over the past year or two, without equal. On Libya, Palin saw that indecision and lack of clear leadership would not do any good. We had to be in it to win it. So what our president said at first, that our mission is to see Qaddafi go, he’s got to go, but then we’re told by one of his top advisers, the...
  • You Are Being Robbed (By The Federal Reserve)

    04/24/2011 11:27:22 AM PDT · by kiryandil · 21 replies
    Youtube ^ | April 21, 2011 | Glenn Beck
    An EXCELLENT piece on the Federal Reserve, the movie It's A Wonderful Life, and why Ben Bernanke is like Mr. Potter. Will Obama & The Bernank be able to turn America into Pottersville?: "Glenn Beck Show (April 21st, 2011): You Are Being Robbed" Short version - 7 minutes 40 seconds:http://www.youtube.com/watch?v=T0ekDYn9P-M "April 21st, 2011" Full version - 39 minutes 27 seconds:http://www.youtube.com/watch?v=J13EhFN0lDw
  • End of QE2 Has Some Investors Fearing Fall in June

    04/18/2011 1:05:08 PM PDT · by SeekAndFind · 18 replies · 1+ views
    Fiscal Times ^ | 04/18/2011 | Matthew Craft
    Could the financial markets be heading for a June swoon? The answer likely hinges on what happens after the Federal Reserve's $600 billion effort to boost the economy expires. Some investors warn that the end of the program, known as QE2, will upend the stock market and push other markets in unexpected directions. Under QE2, the Fed buys Treasurys from investors who can then put the money in stocks and other investments. Economists call it quantitative easing, and it is the second time the Fed has used the tactic. Since last August, when Fed Chairman Ben Bernanke outlined the plan,...
  • Inflation Actually Near 10% Using Older Measure

    04/13/2011 5:12:57 AM PDT · by radioone · 10 replies
    CNBC ^ | 12 Apr 2011 | John Melloy
    After former Federal Reserve Chairman Paul Volcker was appointed in 1979, the consumer price index surged into the double digits, causing the now revered Fed Chief to double the benchmark interest rate in order to break the back of inflation. Using the methodology in place at that time puts the CPI back near those levels.
  • Pimco's Gross: Employment Gains Show QE2 Is Working

    04/02/2011 11:39:18 AM PDT · by DannyTN · 23 replies
    Bloomberg News ^ | Friday, 01 Apr 2011 10:35 AM | Bloomberg News
    Link Only - Bloomberg News was author.
  • Fed unlikely to extend QE2: officials

    03/25/2011 12:17:00 PM PDT · by NormsRevenge · 22 replies
    Yahoo ^ | 3/25/11 | Ann Saphir
    NEW YORK, March 25 – With the economy on firmer footing the Federal Reserve Bank is unlikely to extend its bond-buying stimulus program beyond a planned $600 billion, several top Fed officials said on Friday. Members of the more hawkish wing of the Fed went further, with Philadelphia Fed Bank President Charles Plosser saying the U.S. central bank will have to reverse its easy money policy in the "not-too-distant future" to avoid sowing the seeds of inflation. The Fed has kept short-term rates near zero since December 2008 and has bought more than $2 trillion in long-term securities to push...
  • Epiphany on all the government spending (vanity)

    03/10/2011 5:43:34 AM PST · by Free_in_Alabama · 15 replies
    myself
    I was reading about bankruptcy, county, state, ... because that’s where I believe many locations are headed. I then read an article about personal bankruptcy. One of the things the lawyer was recommending in the article was to load up on unsecure debt. I consider it fraud to load up debt knowing that someone is getting ready or will declare bankruptcy. I believe the courts hold that view also. That’s when I had an epiphany . The government knows damn well they can’t pay all this debt off and won't even try. The deficit in February of this year alone...
  • QE3? Several Top Fed Officials Seem To Think That More Quantitative Easing Is Necessary

    03/08/2011 9:58:25 AM PST · by SeekAndFind · 24 replies
    The Economic Collapse ^ | 03/05/2011 | Michael Snyder
    The end of QE2 is still several months away and yet quite a few top Federal Reserve officials are already hinting that more quantitative easing may be necessary. Apparently the U.S. economy is not moving forward as rapidly as they would like. So it looks like "QE3" could be on the way. But did anyone out there actually believe that quantitative easing would come to a complete stop in June? Whether they call it "QE3" or something else entirely, the reality of the matter is that we have now come to a time when the Federal Reserve is going to...
  • BILL GROSS: June 30, 2011 Will Be Viewed As America's New "D-Day"

    03/02/2011 8:06:16 AM PST · by blam · 34 replies
    The Business Insider ^ | 3-2-2011 | Joe Weisenthal
    BILL GROSS: June 30, 2011 Will Be Viewed As America's New "D-Day" Joe Weisenthal Mar. 2, 2011, 9:58 AM In his latest note, Bill Gross wonders who will buy Treasuries when the Fed stops. We posted his chart here on that. He ends with a big conclusion: Investors should view June 30th, 2011 not as political historians view November 11th, 1918 (Armistice Day – a day of reconciliation and healing) but more like June 6th, 1944 (D-Day – a day fraught with hope for victory, but fueled with immediate uncertainty and fear as to what would happen in the short...
  • Cost of Fed Actions Starting to Offset Benefits: El-Erian

    03/01/2011 12:28:29 PM PST · by FromLori · 5 replies
    Yahoo ^ | 3/1/2011 | Staff
    Extending the Federal Reserve's easy-money policies would be a mistake for an economy that badly needs to learn how to live without artificial stimulus, Pimco's Mohamed El-Erian told CNBC. As Fed Chairman Ben Bernanke delivers his semi-annual policy update to Congress, El-Erian said the central bank ought to be weighing how it will exit the second leg of its multi-trillion dollar quantitative easing program, often called QE2. El-Erian used an automotive analogy to demonstrate what he thinks should be Bernanke's position. "Think of your car having stalled and someone comes along with jumper cables and starts it. At some point,...
  • The Importance of traders and the evils of bankers

    02/26/2011 6:14:49 PM PST · by BfloGuy · 5 replies
    The Cobden Centre ^ | 2/18/2011 | James Tyler
    Trade and commerce is the lifeblood of wealth creation. Without specialisation and exchange, we would all starve. You have oranges, I have apples. Individually we are bored, together we have a fruit salad. For specialisation, exchange and commerce to work its magic, firstly we need some common ground: a market. Now, mention that word to a Socialist, and he starts to froth and foam at the mouth. The evil of markets, how the market forces this and exploits that, blah blah. Unfortunately, they are confused. You see a market is just a bit of space, physical or virtual, where people...
  • Why Ending the Mortgage Interest Deduction Would Save the Economy

    02/14/2011 2:49:47 PM PST · by fightinJAG · 82 replies
    CNBC ^ | Feb. 14, 2011 | John Carney
    Earlier today, the White House released a budget proposal that included trimming the mortgage interest deduction for taxpayers in the top income tax brackets. This is the first step in eliminating what many economists view as an expensive and inefficient housing subsidy. Unfortunately, many of the critics of the mortgage interest deduction focus on its immediate costs. If it were eliminated, it might bring in more than $2 trillion of new revenue for the government or—as I proposed this morning—allow up to $2 trillion of new tax cuts for the American people. Actually, I think getting rid of the housing...
  • Bernanke to Congress: We're Much Closer to Total Destruction Than You Think

    02/13/2011 3:36:50 PM PST · by Leisler · 72 replies
    CNBC ^ | 9 Feb 2011 | John Carney
    Official Congressional budget estimates understate the peril of rising debt, Fed chair Ben Bernanke told the Budget Committee on Capitol Hill today. Warning that our nation's fiscal health has deteriorated appreciably since the onset of the financial crisis and the recession, Bernanke called upon lawmakers to confront the long term fiscal challenges sooner rather than later. If lawmakers don't confront them, they'll find themselves confronted by them.
  • Prominent Chinese Economist Advises Country To Sell Its $500 Billion In GSE Holdings Before QE2 Ends

    02/10/2011 11:50:50 AM PST · by FromLori · 29 replies
    ZeroHedge ^ | 2/10/11 | Tyler Durden
    Add one more pill to the daily Oxycodone consumption by the Chair Central Planner. In what is about to become the latest headache for Bernanke, popular Chinese economist Lu Zhengwei, a senior economist at China's Industrial Bank Co., has advised that China should promptly sell its GSE holdings on concerns that continued "blank check" writing by Congress to the GSEs will be "almost impossible" as well as fears that as soon as QE2 ends, the entire US bond complex will see a major sell off. In other words welcome to the world of game theory defection: he who sells first,...
  • Back to the Future?

    02/09/2011 11:42:24 AM PST · by FromLori · 2 replies
    Barrons | 2/9/2011 | RANDALL W. FORSYTH
    Commodity prices could squeeze economy, just as in 2008 China's central bank raised interest rates for the third time in four months, and undoubtedly not the last time, to counter the growing inflation that is besetting fast-growing emerging economies. That inflation so far is visible mainly in the price of commodities (presuming rising asset prices are not counted in the calculation.) And based on the Continuous Commodity Index, an equal-weighted gauge of prices, commodities have exceeded their old highs set in 2008 and have set a new record, according to Bank of America Merrill Lynch's technical analysis team led by...
  • Authoritarian governments start stockpiling food to fight public anger

    02/01/2011 3:47:53 AM PST · by Daisyjane69 · 11 replies
    The Telegraph (UK) ^ | 2/1/11 | Ben Farmer
    Commodities traders have warned they are seeing the first signs of panic buying from states concerned about the political implications of rising prices for staple crops. However, the tactic risks simply further pushing up prices, analysts have warned, pushing a spiral of food inflation. Governments in Asia, the Middle East and North Africa have recently made large food purchases on the open market in the wake of unrest in Tunisia which deposed president Zine al-Abidine Ben Ali. Resentment at food shortages and high prices, as well as repression and corruption, drove the popular uprising which swept away his government. Youths...
  • $200 Oil on the Horizon?

    01/28/2011 9:00:43 PM PST · by unseen1 · 87 replies
    Conservatives4palin ^ | 1/28/2011 | Doug Brady
    Via Eric Bolling of Fox News: The Suez Canal and the Suez Canal pipeline transport about 4.5 million barrels of oil per day between the two, so when oil investors/traders see protesters on tanks in the Suez, it creates panic because they’re concerned about the delicate balance between supply and demand on the world’s oil. Any disruption in oil supply spikes prices, and these events are certainly cause for disruption. Also very important is the geographic location — just across the canal is Saudi Arabia — the world’s largest producer of oil. If this unrest spills over into Saudi Arabia,...
  • Majority of Voters Oppose Federal Bailouts for States

    01/28/2011 9:00:52 PM PST · by speciallybland · 15 replies
    Rasmussen Reports ^ | January 28, 2011 | Scott Rasmussen
    While a number of states now face serious budget shortfalls, most voters continue to oppose federal bailout funding to help them out. The latest Rasmussen Reports national telephone survey finds that just 26% of Likely U.S. Voters believe the federal government should provide bailout funding for states with serious financial problems. Fifty-three percent (53%) oppose individual state bailouts, and another 21% are undecided.
  • Hidden Inflation: Food Prices Flying Under the Fed's Radar

    01/28/2011 1:14:42 PM PST · by FromLori · 52 replies
    Money Morning ^ | 1/28/2011 | JASON SIMPKINS
    Soaring food prices have been, perhaps, the most pressing global issue of the past two years – yet the U.S. Federal Reserve has taken a "hear no evil, see no evil, speak no evil" approach to the global crisis. Instead, the Fed has dutifully maintained its focus on so called "core inflation" in the United States – even as Americans suffer the consequences of the "hidden inflation" the government refuses to account for. The Federal Reserve excludes food and fuel prices from its preferred gauge of inflation because they are often influenced by erratic weather patterns and political turmoil. That...
  • And.... It's All QE

    01/18/2011 7:27:01 AM PST · by FromLori · 38 replies
    The Market Ticker ^ | 1/18/2011 | Karl Denninger
    If you're wondering what happens if The Fed abandons QE2, the following should put it in stark relief: Monthly net TIC flows were $39.0 billion. Of this, net foreign private flows were $79.8 billion, and net foreign official flows were negative $40.8 billion. Yuck. Here's the problem - this entire ramp job is nothing other than monetization. And while this feels "real good", the question is always sustainability. Anyone who believes that The Fed will be able to continue to monetize forever, and that prices will thus rise forever, and will not decline back to their actual risk-adjusted return and...