Keyword: qe3

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  • Fed's Fisher wants December taper, clear path to end of QE3

    12/12/2013 4:39:11 PM PST · by Son House · 3 replies
    Reuters ^ | Dec 9, 2013 | Tom Polansek
    Saying that the cost of the Fed's $85-billion-a-month asset-purchase program "far exceeds" its benefits, Fisher urged reducing it "at the earliest opportunity," and to articulate a clear, well-defined path for ending it by a certain date. Doing so, he said, could make the Fed's change of policy course easier for markets to digest. When the Fed last signaled it was gearing up to end its bond-buying program, in May and June, investors pushed up market rates faster and farther than the Fed had expected. The rise in rates threatened to slow an already fragile recovery, and was one factor in...
  • Special Report: How Fed policy enriches private equity, if not workers

    12/06/2013 3:25:45 PM PST · by Oldeconomybuyer · 6 replies
    Reuters ^ | December 6, 2013 | By Carrick Mollenkamp
    ... Quantitative easing has had the intended effect of holding down interest rates, which has in turn encouraged borrowing by businesses and individuals with good credit and stabilized the housing market. But persistent economic uncertainty has dulled the positive impact of the Fed's program. U.S. gross domestic product has broken above a 3 percent annual rate of growth in only six quarters since 2009. Some of the money has instead inflated asset bubbles, to the benefit of mostly wealthy investors seeking high yields. The Fed's "real intention was capital investment would be stimulated, jobs would be created, incomes of the...
  • Dem Rep. Alan Grayson Praises Rise of ‘Stealth Socialism’ in America

    09/21/2013 5:10:54 PM PDT · by Tolerance Sucks Rocks · 22 replies ^ | September 20, 2013 | Andrew Kirell
    In a recent interview with Salon, outspoken progressive Rep. Alan Grayson (D-FL) hailed the rise of what he called “stealth socialism” through America’s recent monetary policy decisions.Asked by interviewer David Dayen whether the financial system has become “safer” in the years since the financial collapse and subsequent government interventions like 2010′s Dodd-Frank bill, Grayson praised the Federal Reserve for its “unconventional” policies that have “put us back on a low-level track toward growth.”Asked about the Fed’s expanding balance sheet, the Florida Democrat said: “We’ve had a government takeover of the bond market. Stealth socialism’s been created. Government simply ends up...

    06/12/2013 9:44:25 PM PDT · by Jedediah
    I have chosen you for a special mission , not just for your zeal in me but through your fortitude to overcome the obstacles I 've allowed to be placed in your way , and these have been used to strengthen and nurture you in my spirit , for I have brought you to this level of enlightenment to allow you to see precisely how my spirit flows and works in and through peoples lives , for now more than ever before I will release my spirit to do more wonders and reveal the true nature of Christ in a...
  • Fed's Bernanke sees no U.S. inflation risks: Nowotny

    04/20/2013 8:58:32 PM PDT · by haffast · 12 replies
    Reuters ^ | 4-20-2013 | Reuters
    WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke told global policymakers he sees no risk to inflation in the United States, European Central Bank Governing Council member Ewald Nowotny said on Saturday. Summing up presentations to an International Monetary Fund meeting, Nowotny told reporters Bernanke had given a "very optimistic" portrayal of the U.S. outlook. "They see absolutely no danger of an expansion in inflation," Nowotny said. Bernanke had said U.S. inflation should be 1.3 percent this year.
  • Fed could start tapering QE3 this summer: Williams

    04/03/2013 1:18:52 PM PDT · by Ernest_at_the_Beach · 5 replies
    Marketwatch ^ | April 3, 2013, 3:42 p.m. EDT | Greg Robb, MarketWatch
    WASHINGTON (MarketWatch) — The Federal Reserve could start tapering its $85 billion-a-month asset-purchase plan by the summer, said John Williams, president of the Federal Reserve Bank of San Francisco on Wednesday.
  • Here is a way to explain “Quantitative Easing” to liberals

    11/21/2012 6:57:27 PM PST · by Ben Mugged · 16 replies
    Today | Me
    Here is a way to explain “Quantitative Easing” to liberals. You and I sit down to a friendly game of poker. I bring out the chips in different colors and we both “buy in” by trading real dollars for the chips. As the game progresses you win most of the chips. I reach into the chip box and place a large stack on my side and continue playing. I did not pay for the chips, I just “created” them out of the blue. You continue to win and you have a large stack of colored chips in front of you....
  • Gideon Gono Comments on QE3 (used to be governor of the Reserve Bank of Zimbabwe)

    10/16/2012 2:45:36 PM PDT · by dynachrome · 4 replies
    Mises SA ^ | 10-16-12 | Chris Becker
    2.17 These interventions which were exactly in the mould of bail out packages and quantitative easing measures currently instituted in the US and the EU, were geared at evoking a positive supply response and arrest further economic decline. But even still, 2.20 Despite numerous intervention measures undertaken by Government through the Reserve Bank of Zimbabwe, economic activity continued to decline progressively with inflation peaking at 231 million percent by July 2008. Other challenges that affected the economy include the following:
  • Destruction of the US Dollar

    10/15/2012 2:04:32 PM PDT · by Tolerance Sucks Rocks · 11 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...
  • Jim Rogers: It's Going To Get Really "Bad After The Next Election"

    10/15/2012 2:08:13 AM PDT · by bruinbirdman · 48 replies
    Money Morning ^ | 10/14/2012 | Terry Weiss
    In a riveting interview on CNBC, legendary investor Jim Rogers warned Americans to prepare for "Financial Armageddon," saying he fully expects the economy to implode after the U.S. election. Rogers, who for years has been an outspoken critic of the Feds policies of "Quantitative Easing," says the world is "drowning in too much debt." He put the blame squarely on U.S. and European governments for abusing their "license to print money." In the U.S. alone, the national debt has surged to nearly $16 trillion, that's more than $50,000 for every American man, woman and child. "[They] need to stop spending...
  • The Thrill is Gone: Mortgage Refi Applications Drop, SP500 Falls Below QE3 Announcement Level

    10/10/2012 11:21:19 AM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 10/10/2012 | Snakeeyes Econ
    As BB King sang, “The Thrill is Gone” from QE3. According to the Mortgage Bankers Association, mortgage applications decreased -1.21% in the latest survey of mortgage lenders. The Refinance Index decreased 2 percent from the previous week. However, the general mortgage refinancing trend continues. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. This is a continuation a trend of mortgage purchase applications rising in the Fall. But mortgage purchase applications still remain in a box. This is somewhat amazing given the 12 million people on unemployment, and millions on disability and foodstamps. And the JOLTS Job...
  • Why A Fed President Just Suggested Doubling QE3

    10/03/2012 6:23:26 AM PDT · by blam · 30 replies
    TMO ^ | 10-2-2012 | Dan Amerman
    Why A Fed President Just Suggested Doubling QE3 Interest-Rates / Quantitative EasingOct 03, 2012 - 02:20 AM By: Dan Amerman Chicago Federal Reserve Bank President Charles Evans was interviewed on CNBC on Monday, and he indicated that he was in favor of continuing asset purchases at a rate of $85 billion per month all the way through 2013. If approved by the rest of the Fed, this would have the effect of about doubling the size of "QE3", or Quantitative Easing Three, the massive Federal Reserve monetary creation and market intervention program announced only three weeks ago. QE3 combines mortgage...
  • Lindsey: Fed Virtually Funding the Entire Deficit ($85 Billion a Day) - Video

    09/26/2012 11:07:25 AM PDT · by mojito · 26 replies
    CNBC via RealClearMarkets ^ | 9/26/2012 | Lawrence Lindsey - Squawk Box
    The latest round of extraordinary Federal Reserve stimulus is risky and leaves little room to maneuver....
  • Just a reminder: QE3 will work just as well as QE1 & 2

    09/21/2012 10:17:24 AM PDT · by SeekAndFind · 4 replies
    Hotair ^ | 09/21/2012 | Ed Morrissey
    It comes as no great surprise that Rick Santelli isn't a big fan of the latest round of quantitative easing. The CNBC analyst tells Pimco chief Mohammed el-Arian that the QE3 will hammer retirement plans and the most responsible savers, and won't solve the problem that the Fed wants to address --- joblessness. Santelli has a lengthy rant about government policies that push greater central control and its interlocking effect on the Fed's inflationary policies, but mostly he tells el-Arian that it's not going to work:CLICK ABOVE LINK FOR THE VIDEO Earlier, el-Arian admitted that the QE3 now looks like...
  • Count the cost.... and the consequences!

    09/19/2012 9:21:09 PM PDT · by jaypounder · 3 replies
    The Event ^ | 0919/2012 | Jay Pounder
    Count the cost.... and the consequences! "All human sin seems so much worse in its consequences than in its intentions." Reinhold Niebuhr - Writer / Philosopher I am constantly saying to my kids, "Think before you act...", "Don't be over zealous...", "Stay with the group", " Think about those around you! How will your decisions affect others?" But you know what... it has absolutely no effect on them...! They think they know better, so they touch the stove, or jump off that high thing, or they swing to fast, and not wear a helmet and then suffer the consequences because...
  • The Trouble with Printing Money, QE3 Reflects Colossal Failure to Address Our Predicament

    09/19/2012 8:02:09 PM PDT · by blam · 7 replies
    The Market Oracle ^ | 9-19-2012 | Dr Martenson
    The Trouble with Printing Money, QE3 Reflects Colossal Failure to Address Our Predicament Interest-Rates / Quantitative EasingSep 19, 2012 - 12:18 PM By: Dr Martenson For a while now, I have been expecting a coordinated, global central bank action that would seek to print more money out of thin air, or "QE" (quantitative easing), as it is now called. Now we have two of the most important central banks, that of the U.S. (the Federal Reserve) and in Europe (the ECB) having committed to open-ended, limitless QE. The most recent announcement came from the Fed, and it had these features:...
  • Housing Recovery? Try Long Convalescence

    09/18/2012 3:08:15 PM PDT · by blam · 4 replies
    Advisor Perspectives ^ | 9-18=2-12 | Russ Koesterich
    Housing Recovery? Try Long Convalescence iShares Blog By Russ Koesterich September 18, 2012 The US Federal Reserve’s decision to expand quantitative easing is dramatic, but we don’t think it will have a significant impact on the US housing market. While the extra liquidity is supportive of risky assets in the very near-term, lower mortgage rates are not a game-changer for a consumer still struggling with little income growth and too much debt. Certainly, the prospect of buying another $40 billion a month of mortgage-backed securities will help keep home-loan rates low for a long time, but they were already low....
  • Bernanke to Savers, Unemployed and Wall Street: Drop Dead.

    09/18/2012 6:16:25 AM PDT · by SeekAndFind · 6 replies
    RCM ^ | 09/18/2012 | John Tamny
    In his essential 1982 book, The Economy In Mind, the late Warren Brookes relayed a story from 1979 in which a Keynesian economist from the United States was passing through customs at JFK Airport. When the customs officer processing his entry saw his profession, he commented, "I don't know whether I should let you back in, Professor, considering what you economists have done to this country." The officers' words take on special meaning amid Fed Chairman Bernanke's latest attempt to revive the U.S. economy through monetary machinations. Blind to the horrors of his actions, this most self-unaware of economists is...
  • Fed action a welcome move for small businesses [Brainless Cheer leader for printing money]

    09/18/2012 3:22:19 AM PDT · by SoFloFreeper · 10 replies
    Washington Post ^ | September 18, 2012 | Sharon Jenkins
    A collective sigh of relief quickly spread through key segments of the U.S. economy last week as news broke about QE-3 —the third round of quantitative easing announced by Federal Reserve Chairman Ben Bernanke...
  • The Magnitude of the Mess We're In

    09/17/2012 3:04:01 AM PDT · by Evil Slayer · 26 replies
    The Wall Street Journal ^ | 9/16/12 | George P. Shultz
    Sometimes a few facts tell important stories. The American economy now is full of facts that tell stories that you really don't want, but need, to hear. Where are we now? Did you know that annual spending by the federal government now exceeds the 2007 level by about $1 trillion? With a slow economy, revenues are little changed. The result is an unprecedented string of federal budget deficits, $1.4 trillion in 2009, $1.3 trillion in 2010, $1.3 trillion in 2011, and another $1.2 trillion on the way this year. The four-year increase in borrowing amounts to $55,000 per U.S. household....
  • Bernanke’s Quantitative Easing: Wrong Medicine for an Ailing Economy

    09/17/2012 7:30:19 AM PDT · by KeyLargo · 18 replies ^ | Sep 14, 2012 | J.D. Foster
    Bernanke’s Quantitative Easing: Wrong Medicine for an Ailing Economy Friday, 14 September 2012 08:40 J.D. Foster The Federal Reserve’s Open Market Committee announced today that it would pursue $40 billion in additional monthly stimulus in the form of quantitative easing. Meanwhile, it will maintain its previous program of exchanging about $45 billion monthly in short-for-long-term securities. Quantitative easing, or QE, is purchasing long-dated government bonds and similar debt instruments. » If you like this article, please donate to Right Side News Daily The policy is certainly well motivated: The U.S. economy is barely growing, as the latest jobs report underscored,...
  • Here Comes $10,000 Gold...

    09/16/2012 4:48:28 PM PDT · by blam · 34 replies
    TBI ^ | 9-16-2012 | Sam Ro
    Here Comes $10,000 Gold... Sam RoSep. 16, 2012, 5:56 PM"It has never been easy to have a rational conversation about the value of gold," wrote Ken Rogoff in a 2010 piece titled $10,000 Gold?. But with the national debt passing $16 trillion and the Federal Reserve launching a unlimited quantitative easing, the gold bulls will increasingly tell you that the sum of their fears are coming true. In this week's issue of Barron's, Jim McTague spoke to Guggenheim Partners Scott Minerd: Hedging against the most pessimistic case without crippling the upside potential of a better or even miraculous case appears...
  • Marc Faber: "Fed QE3 Will Destroy The World" (and the middle class)

    09/15/2012 7:20:35 AM PDT · by dennisw · 28 replies
    zerohedge ^ | 09/14/2012 | Tyler Durden
      Free Republic moderators---  please do not excerpt.--Zero hedge does not mind        "Everything will collapse" is the consequence Gloom, Boom, & Doom's Marc Faber sees from the Fed's latest 'stimulus' (and the fallacy and misconception of how money-printing can help employment). In a wondrously clarifying interview on Bloomberg TV this morning, Faber explained why he was 'happy', since "the asset values of his holdings will go up" but as a responsible citizen he is worried because "the monetary policies of the US will destroy the world." It truly is class warfare under a veil of 'its good for you' as...
  • Fed In For A Penny, In For A Pound (outstanding graphs)

    09/15/2012 8:00:25 AM PDT · by Seizethecarp · 7 replies
    Seeking Alpha ^ | September 14, 2012 | David Fry
    Basically the Fed has gone too far done the money printing mode to stop now. They believe what their policies will stimulate employment but all operations in this regard have failed. The Bernank will spin this as an apolitical move coming two months before an election that could cost him his job…just sayin'. This policy is intended to boost asset prices and prevent a Japanese style deflationary cycle. No matter what they say, TPTB will always choose inflation vs deflation every time. Thus far they've succeeded in supporting their primary clients, the mega-banks. The bottom line for us is we're...
  • If You Can Eat It, Buy It Now Because It'll Be More Expensive In A Month

    09/15/2012 6:27:11 AM PDT · by blam · 32 replies
    TBI ^ | 9-15-2012 | Bruce Krastering
    If You Can Eat It, Buy It Now Because It'll Be More Expensive In A Month Bruce Krasting, My Take On Financial EventsSep. 14, 2012, 8:10 PMThe most significant market adjustment since Bernanke used the “Unlimited” word is not in stocks, bonds or PMs. It’s in inflation expectations. Have a look at this chart. Focus on the incredible spike in the past 24-hours. The 10-Year Breakeven SpreadThe sick part of this is that if Bernanke saw this graph, he would cry with tears of happiness. This is exactly what he was praying for. Ben thinks that inflation is a good...
  • Bernanke's Act of Terrorism

    09/15/2012 12:08:35 AM PDT · by morethanright · 4 replies
    Tea Party Tribune ^ | 2012-09-14 23:46:19 | mrcurmudgeon
    By Mr. Curmudgeon:While Islamic militants riot outside U.S. embassies overseas, and kill American counselor officials and their support personnel, another terrorist act just as deadly took place on American soil. Federal Reserve Chairman Ben Bernanke announced his independent, in your face, answer-to-no-one agency will flood the U.S. economy with $40-billion-a-month in counterfeit greenbacks to buy worthless mortgage-backed securities. He said the Fed would continue the policy "until such improvement is achieved in a context of price stability." That's Fed speak for "Forever."Commodity prices, like oil for instance, soared after Benny boy's announcement. So much for "price stability."As if to prove...

    09/14/2012 5:54:55 PM PDT · by MNJohnnie · 9 replies
    Classic ^ | 09-14-2012 | By Wayne Jett
    $480 BILLION ANNUAL DIRECT TAX ON SAVINGS Federal Reserve Goes All In for its Owners By Wayne Jett © September 14, 2012 The Federal Reserve announces its intent to create $40 billion monthly at the expense of existing savings and pay it to the big banks for mortgage-backed securities. This outrageous looting evokes what response? Applause, of course, and a little intellectual hand-wringing gives just the right tint of fair debate. Who continues to assign any credibility to the Federal Reserve’s announced policies, objectives and motives? No informed person, except those beholden to big banks (the Fed’s controlling shareholders), including...
  • US Credit Rating Cut by Egan-Jones ... Again [pumping blamed]

    09/14/2012 1:37:16 PM PDT · by Cincinatus' Wife · 11 replies
    CNBC ^ | September 14, 2012
    Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality. The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar. In turn, this...
  • QE3: Helicopter Ben Bernanke Unleashes An All-Out Attack On The U.S. Dollar

    09/14/2012 9:25:53 AM PDT · by SeekAndFind · 23 replies
    The Economic Collapse Blog ^ | 09/14/2012 | Michael Snyder
    You can't accuse Federal Reserve Chairman Ben Bernanke of not living up to his nickname. Back in 2002, Bernanke delivered a speech entitled "Deflation: Making Sure 'It' Doesn’t Happen Here" in which he referenced a statement by economist Milton Friedman about fighting deflation by dropping money from a helicopter. Well, it might be time for a new nickname for Bernanke because what he did today was a lot more than drop money from a helicopter. Today the Federal Reserve announced that QE3 will begin on Friday, but it is going to be much different from QE1 and QE2. Both...
  • Industrial Production Plunges Most Since March 2009

    09/14/2012 9:22:20 AM PDT · by mojito · 3 replies
    ZeroHedge ^ | 9/14/2012 | Tyler Durden
    In one more example of why we are going to need more-er and open-ended-er QE from the Fed, today's dismal data rolls on. Industrial Production dropped 1.2% MoM - its largest drop since March 2009 - and missed expectations by the most since December 2008. The market (expectedly) is unimpressed and stable - fully aware that the Fed's new infinite QE will simply be expanded to an infinte-er QE should things go from worse to worse-er. To add more salt to the wound, Capacity Utilization dropped to its lowest of the year and missed expectations by its most in 16...
  • Fed: Quantitative easing now, quantitative easing tomorrow, quantitative easing forever

    09/13/2012 6:49:01 PM PDT · by dennisw · 28 replies ^ | September 13, 2012, | Kyle Wingfield
    This is not what people mean when they talk about “wealth creation.” In fact, it’s very nearly the opposite of that: The inevitable devaluing of the dollar — the prices of gold, silver and several other commodities spiked in the minutes following the Fed’s 12:30 announcement — means our savings will lose value. This is the destruction of future wealth in the hopes of creating some current economic growth. In that respect, it is no different from increasing the budget deficit even further to fund even more Keynesian spending. The Federal Reserve’s Open Market Committee today said it will keep...
  • Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates

    09/13/2012 11:01:38 AM PDT · by Free ThinkerNY · 90 replies
    Yahoo! Finance/CNBC ^ | Sept. 13, 2012 | Jeff Cox
    The Federal Reserve fulfilled expectations of more stimulus for the faltering economy, taking aim now at driving down mortgage rates. The Fed said it will buy $40 billion of mortgages per month in an attempt to foster a nascent recovery in the real estate market. The purchases will be open-ended, meaning that they will continue until the Fed is satisfied that economic conditions, primarily in unemployment, improve. There's strong hints that they'll do Treasurys next," Joe LaVorgna, chief economist at Deutsche Bank Advisors, said in a phone interview from London."They're pulling out all the stops to try to get this...
  • Fed Undertakes QE3 With $40 Billion MBS Purchases Per Month

    09/13/2012 3:12:59 PM PDT · by SeekAndFind · 38 replies
    San Francisco Chronicle ^ | 09/13/2012 | Joshua Zumbrun
    The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment. “We’re looking for ongoing, sustained improvement in the labor market,” Chairman Ben S. Bernanke said in his press conference today in Washington following the conclusion of a two-day meeting of the Federal Open Market Committee. “There’s not a specific number we have in mind. What we’ve seen in the last six months isn’t it.” Stocks jumped, sending benchmark indexes to the...
  • Federal Reserve launches QE3

    09/13/2012 11:04:20 AM PDT · by KansasGirl · 26 replies
    CNN ^ | 9/13/12 | Annalynn Censky
    NEW YORK (CNNMoney) -- The Federal Reserve announced plans to unleash more stimulus Thursday, in its third attempt at a controversial program to rev up the U.S. economy. The policy, known as quantitative easing and often abbreviated as QE3, entails buying $40 billion in mortgage-backed securities each month. The end date remains up in the air, as the Fed will re-evaluate the strength of the economy in coming months. The Fed is wasting no time. The purchases begin Friday and are expected to total about $23 billion over the remainder of September.
  • Fed launches new open-ended stimulus

    09/13/2012 10:16:54 AM PDT · by BradtotheBone · 39 replies
    The Hill ^ | 09/13/12 12:44 PM ET | Peter Schroeder
    The bank says it will work to stimulate the economy until it sees improvements in the labor market. The Federal Reserve announced an open-ended bond buying program Thursday it said would continue until the labor market improves "substantially." The announcement marks a significant new step in the Fed's effort to boost the economy, and also signals the central bank's concern about the weak recovery from the recession. The political ramifications of the move could also be huge. The decision comes less than two months before a presidential election expected to turn on voter perceptions of the economy. Stocks spiked on...
  • Moody’s Text: To Downgrade US If No Deal To Cut Debt/GDP Ratio

    09/11/2012 9:54:40 AM PDT · by RoosterRedux · 6 replies
    forexlive.como ^ | 9/11/2012 | Market News International
    The following is the text of a statement Tuesday by rating agency Moody’s: Budget negotiations during the 2013 Congressional legislative session will likely determine the direction of the US government’s Aaa rating and negative outlook, says Moody’s Investors Service in the report “Update of the Outlook for the US Government Debt Rating.” If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable, says Moody’s. If those negotiations fail to produce such...
  • Why The Fed Will Not Launch QE3

    09/09/2012 2:42:29 PM PDT · by blam · 13 replies
    TMO ^ | 9-9-2012 | Tony Pallotta
    Why The Fed Will Not Launch QE3 Interest-Rates / Quantitative EasingSep 09, 2012 - 10:46 AM By: Tony Pallotta Whether the Fed decides to launch QE3 this week is far more a complex decision than they lead us to believe. It is not as simple as monitoring economic data and deciding whether to expand the balance sheet or not. Yet the Fed rarely discusses what that other criteria is in making such an important decision. The recent Jackson Hole speech by Chairman Bernanke did offer some insight to the other factors, as well as his recent Congressional testimony. And there...
  • Economists Expect Fed to Deliver QE3 and More Next Week

    09/09/2012 9:07:56 AM PDT · by wm25burke · 14 replies
    Wall Street Journal ^ | 07 Sep 2012 | Michael S. Derby
    A wide range of economists expect the Federal Reserve to restart balance-sheet-expanding bond buying in a bid to spark better growth rates, amid other, lesser stimulus options. For most forecasters, the release Friday morning of tepid-at-best August hiring data essentially seals the deal that when the central bank ends its two-day monetary-policy meeting next Thursday, it will in some fashion offer fresh stimulus to the economy. The way economists see it, comments by core central bank officials, most notably Chairman Ben Bernanke‘s speech a week ago, make some form of action very likely....
  • Why QE3 Is Coming Next Week

    09/09/2012 6:10:53 AM PDT · by blam · 23 replies
    TBI=Calculated Risk ^ | 9-9-2012 | Calculated Risk-Bill McBride
    Why QE3 Is Coming Next Week Calculated RiskSep. 8, 2012, 10:29 PMSince the Jackson Hole Symposium, I've been thinking it is very likely that so-called "QE3" would be announced at the next FOMC meeting (Sept 12th and 13th). And after thinking about Columbia University professor Michael Woodford's paper presented at Jackson Hole, I think this round of asset purchases might be more effective than most people expect. Notes: QE3 is shorthand for another Large Scale Asset Purchases (LSAP) program. "QE" is monetary policy, not fiscal policy (not spending). Yesterday, Goldman Sach economist Sven Jari Stehn beat me to the punch....
  • Goldman Presents: The Case For A Fed 'Double Punch'

    09/08/2012 10:37:45 AM PDT · by blam · 7 replies
    Goldman Presents: The Case For A Fed 'Double Punch' Joe WeisenthalSep. 8, 2012, 4:52 AMThe Fed is set to meet next week, and thanks to Friday's disappointing jobs report, economists have raised their odds of seeing QEIII adopted. That would mean that in an effort to boost the economy, the Fed would buy more purchases... perhaps Mortgage Backed Securities with the purpose of bringing down interest rates for homebuyers. In a note put out last night, Goldman's Sven Jari Stehn presents: The Case for a Double Punch in September. Stehn's paper actually keys off of the Michael Woodford Jackson Hole...
  • Market Sees 'Helicopter Ben' Coming to the Rescue (Get ready for more money printing)

    09/07/2012 12:38:25 PM PDT · by SeekAndFind · 2 replies
    CNBC ^ | 09/07/2012 | Patti Domm
    <p>Stocks initially dipped after August’s painfully weak employment report showed job growth of just 96,000, but the market was flat as traders bet the number could help push the hand of the Federal Reserve towards a new round of quantitative easing.</p>
  • If Bernanke Bails Out Obama Get Ready For Five Buck Gas - Post Election

    09/06/2012 5:51:33 PM PDT · by billflax · 14 replies
    Forbes ^ | 09/06/2012 | Bill Flax
    Once there was an unwritten rule that the Federal Reserve would refrain from significant policy adjustments before an election. Few things are as encompassing to culture as our currency, or as vital that they be thought free of intrigues. With public confidence in the dollar diminished, or perturbed by politics, society suffers this dearth of trust in more than just finance. Commentary abounds that Mr. Bernanke will soon commence yet more quantitative easing, QE3 for short. Why? Clearly the ongoing economic stagnation stems not from prohibitively high interest rates. Rates hover just off historic lows. Given the moribund economy, financial...
  • Bernanke: With unemployment high, Fed can do more

    08/31/2012 11:13:34 AM PDT · by KansasGirl · 32 replies
    Washinton Times ^ | 8/31/12 | Paul Wiseman
    JACKSON HOLE, Wyo. — Chairman Ben Bernanke made clear Friday that the Federal Reserve will do more to boost the economy because of high U.S. unemployment and an economic recovery that remains “far from satisfactory.” He also argued that the Fed’s moves so far to keep interest rates at record lows and encourage borrowing and spending have helped bolster the economy. Bernanke stopped short of committing the Fed to any specific move, such as another round of bond purchases to lower long-term rates. But in a speech at an annual Fed conference in Jackson Hole, Wyo., Bernanke said that even...
  • 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,...
  • Fed joins stimulus party as global trade slumps

    08/23/2012 11:10:04 PM PDT · by bruinbirdman · 9 replies
    The Telegraph ^ | 8/23/2012 | Ambrose Evans-Pritchard
    All three major blocs of the world economy have shifted gears dramatically over the last month, preparing a fresh blast of stimulus to combat the sharpest contraction in global trade since the 2008-09 crisis. The US Federal Reserve appears poised for a third round of quantitative easing (QE) as soon as early September, joining Europe and China in concerted global stimulus. The Fed’s latest minutes show broad support for fresh bond purchases – probably mortgage bonds – unless signs of “substantial and sustainable strengthening” emerge soon. Paul Ashworth from Capital Economics said QE3 looks like a “done deal” since little...
  • Fed Sees U.S. Economic Growth Slowing, Mulls Policy Options ( QE-3)

    08/22/2012 11:27:31 AM PDT · by scooby321 · 4 replies
    Fox Business ^ | 8-22-2012 | Staff
    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.
  • The Fed’s FOMC Decision: Hands Tied By Excessive Regulations and Poor M2 Money Velocity

    07/29/2012 10:12:43 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 07/29/2012 | Anthony B. Sanders
    The Federal Reserve’s Open Market Committee will meet on July 31 and August 1. What will they do? The broader economic indicators for the U.S. are either slowing down or not improving. Real GDP growth was revealed to be a paltry 1.50% for Q2 2012 following 2.0% for Q1 2012 and 4.0% for Q4 2011. U6 unemployment (Total unemployed, plus all marginally attached workers plus total employed part time for economic reasons) remains at near 15%. Since June 2010, more Americans have gone on disability than have dropped off of unemployment rolls by 237,000. And an additional 4.9 million Americans...
  • QE3's Looming Failure Means Ben's Days Are Numbered

    07/26/2012 6:51:03 AM PDT · by SeekAndFind · 5 replies
    RCM ^ | 07/26/2012 | John Tamny
    The above-the-fold headline of yesterday's Wall Street Journal, "Fed Moves Closer to Action", signals an impossibly deluded Federal Reserve utterly blind to the damage its machinations are bringing to the U.S. and global economy. Though the Fed's policies are the single greatest barrier to economic growth, Ben Bernanke, its walking, talking contarian indicator of a Chairman, seems determined to insert even more poison into the patient; presumably with an eye toward QE4 when his latest treatment logically fails. That QE3 will certainly fail is the good news for a long suffering electorate, and it is because the weakened economic result...
  • Market Reactions to Bernanke's Report to U.S. Senate (Bernanke Does E.F. Hutton Impression)

    07/17/2012 8:56:22 AM PDT · by whitedog57
    Confounded Interest ^ | 07/17/2012 | Anthony B. Sanders
    Like the old E.F. Hutton ads, “When Ben Bernanke speaks, people listen.” The Euro: Gold: US Treasury 10 year yield: The reaction to Bernanke’s speech is less than enthusiastic. Apparently, the market wanted a more firm statement on more quantitative easing (and Senator Schumer from New York said so in the Senate hearing). In Bernanke’s defense (which no Senator acknowledged), M2 Money Velocity is falling below levels not seen in modern times. If you watch Bernanke’s Senate presentation, Senators Toomey (PA) and Corker (TN) win the award for best observations and questions. No one expressed the sentiment that The Fed...
  • BofA: QE3 Is Coming In September

    07/11/2012 9:37:58 PM PDT · by blam · 6 replies
    TBI ^ | 7-11-2012 | Sam Ro
    BofA: QE3 Is Coming In September Sam Ro July 11, 2012, 7:25 PM Economists spent the afternoon thumbing through the minutes of the June Federal Open Market Committee (FOMC) meeting. They were searching for clues on what the Fed's next move might be. Bank of America's economics team led by Michael Hanson and Ethan Harris think that the next move is QE3, a form of monetary policy that involves buying certain securities to lower interest rates. From this afternoon's note to clients: The minutes from the June FOMC meeting revealed a larger number of Fed officials either favoring or willing...