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Bernanke: stop calling it QE!
Forbes ^ | 11/18/2010 | Colin Barr

Posted on 11/19/2010 8:50:57 AM PST by markomalley

There's something about quantitative easing that bothers just about everyone - including, believe it or not, Fed chief Ben Bernanke.

But in contrast to his many critics, Bernanke's problem lies not with the policy itself, in which the Federal Reserve has pledged to buy $600 billion worth of Treasury bonds over eight months in its latest bid to bring down interest rates and stimulate the economy.

What's in a name?

No, Bernanke's beef is that what the Fed is doing isn't properly called quantitative easing, as he reminded everyone in his speech Friday.

Incidentally, in my view, the use of the term "quantitative easing" to refer to the Federal Reserve's policies is inappropriate. Quantitative easing typically refers to policies that seek to have effects by changing the quantity of bank reserves, a channel which seems relatively weak, at least in the U.S. context. In contrast, securities purchases work by affecting the yields on the acquired securities and, via substitution effects in investors' portfolios, on a wider range of assets.

(Excerpt) Read more at finance.fortune.cnn.com ...


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: bernanke; dollar; easing; economy; hawkins; humphrey; humphreyhawkins; inflation; thefed; theqe2
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1 posted on 11/19/2010 8:51:02 AM PST by markomalley
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To: markomalley

What would he prefer we call it? Man caused disaster?


2 posted on 11/19/2010 8:53:08 AM PST by jazminerose (o)
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To: markomalley

Let’s just call it theft.


3 posted on 11/19/2010 8:55:27 AM PST by nina0113
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To: jazminerose

“Printing money.” “Monetizing the debt.” “Zimbabwe.” “Waimarer Monetary Policy.” “The end of the dollar.”


4 posted on 11/19/2010 8:57:16 AM PST by patton
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To: markomalley

Like the bear said, we should just call it “the printing money”.


5 posted on 11/19/2010 9:01:03 AM PST by SeeSharp
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To: jazminerose

“What would he prefer we call it? Man caused disaster?”

I laughed!


6 posted on 11/19/2010 9:03:20 AM PST by kildak
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To: markomalley

Printing Money electronically.


7 posted on 11/19/2010 9:03:32 AM PST by Paladin2
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To: nina0113

You nailed it theft it is they are a bunch of crooks this is nothing more then a gift to the banks and a run around congress which equals a back door tax increase for all Americans.

RUSH: There are a number of parasites out there. Look, devaluation of the dollar is a back door tax on everything, folks. The devaluation of the dollar is a back door tax on everything

http://www.rushlimbaugh.com/home/daily/site_111210/content/01125113.guest.html

The Biggest Bank Robbery In History? More Quantitative Easing = Backdoor Bailouts For The Big Banks Without Having To Go Through Congress

http://theeconomiccollapseblog.com/archives/the-biggest-bank-robbery-in-history-more-quantitative-easing-backdoor-bailouts-for-the-big-banks-without-having-to-go-through-congress


8 posted on 11/19/2010 9:06:42 AM PST by FromLori (FromLori)
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To: markomalley

“changing the quantity of bank reserves”

Well, that is EXACTLY what it was the first time around and exactly what it will be this time around. Banks illegally depleted their required FDIC minimum balances then filled their coffers with the first QE round to bring their FDIC minimum balances back to required levels. The banks are now sitting on what is estimated at $2 trillion and not making loans as doing so has no benefit to them. Adding another $600 billion will do nothing more.


9 posted on 11/19/2010 9:07:56 AM PST by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: markomalley

“Bernanke Economy Destruction” doesn’t roll off the tongue like QE II does.


10 posted on 11/19/2010 9:11:22 AM PST by Lazlo in PA (Now living in a newly minted Red State.)
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To: markomalley
I thought The Bernake was calling it QE himself.

http://imarketnews.com/node/21970 (Sunday, November 7)

except:

Bernanke said he and his fellow monetary policymakers had to resume so-called quantitative easing to fulfill its statutory “dual mandate,” which calls for maximum sustainable employment and price stability. He said the Fed couldn't be happy with high unemployment and a rate of inflation that is running below the Fed's long-term forecast of 1.7% to 2%.

But Bernanke, who was on a panel with former Fed Chairman Alan Greenspan and former New York Fed President Gerald Corrigan, said the Fed is just using different tools to accomplish the same results it would be seeking if it still had room to cut the federal funds rate.

“There's a sense out there that quantitative easing or asset purchases is something completely foreign and new and that we have no idea what's going to happen,” he said. “Quite to the contrary ... . This is just monetary policy.”

11 posted on 11/19/2010 9:13:01 AM PST by garyb
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To: markomalley

How about Tax On Real People-—TORP?


12 posted on 11/19/2010 9:13:56 AM PST by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
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To: markomalley

Okay, Helicopter Ben, we’ll stop calling it the “QE II”.

“Titanic” is so much more appropriate.


13 posted on 11/19/2010 9:19:32 AM PST by Uncle Miltie (0bama thought he'd find "common ground" on 0bamaCare because of ROMNEYCARE!)
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To: nina0113

Breaking News: Ben Bernanke Caught Issuing Trillions to NAMBLA! In an unauthorized “Helicopter” quantitative easing action, Ben Bernanke was photographed hovering above NAMBLA Headquarters unloading box after box of $100 bills into the downdraft.


14 posted on 11/19/2010 9:20:07 AM PST by Uncle Miltie (0bama thought he'd find "common ground" on 0bamaCare because of ROMNEYCARE!)
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To: markomalley

Bernanke prefers the term “credit easing”.


15 posted on 11/19/2010 9:20:54 AM PST by Hoodat ( Don't touch my junk, Bro !)
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To: markomalley

No it’s called printing money.


16 posted on 11/19/2010 9:22:16 AM PST by The Great RJ (The Bill of Rights: Another bill members of Congress haven't read.)
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To: markomalley; Avoiding_Sulla; GladesGuru
Do I detect a tacit admission of vulnerability?

Would that it were fully justified.

17 posted on 11/19/2010 9:28:16 AM PST by Carry_Okie (The RINOcrat Party is still in charge. There has never been a conservative American government.)
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To: markomalley
Quantitative Easing Explained
18 posted on 11/19/2010 9:41:28 AM PST by Manic_Episode (Some mornings, it's just not worth chewing through the leather straps...)
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To: Uncle Miltie

“QUEER ECONOMY”?
“$300.00” bills?


19 posted on 11/19/2010 9:42:03 AM PST by GOYAKLA (Flush Congress in 2010 & 2012)
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To: freedomfiter2

Let’s flesh it all the way out......

TORPEDO

Tax On Real People Eventually Depleting Ownership

(first crack anyhow...)


20 posted on 11/19/2010 10:23:46 AM PST by onona (dbada)
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