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HomeThe Hidden Costs of Quantitative Easing or “As An Actuary You Are Having Sleepless Nights”
Posted by Larry Doyle on October 6th, 2010 9:03 AM |
When central banks hint at implementing further quantitative easing and risk-based assets (commodities and equities) rally and interest rates fall (meaning, bonds rally as well), this is all good, right? If that is the case, is it even better when the hints become an outright statement of plans for more quantitative easing as was the case yesterday with The Bank of Japan? (WSJ: Central Banks Open Spigot; October, 4, 2010)
Clearly, the global central banks are launching these new volleys of quantitative easing in an attempt to forestall deflationary pressures at work underlying our global economy. That said, while asset markets are rising, we need to be aware there are very real costs to this ongoing financial experiment. What are the costs? (more…)
Tags: Bank of Japan quantitative easing, Central Banks Open Spigot, companies with fixed pension liabilities, deflationary pressures, disinflation, Greater Fool Theory, hidden costs of quantitative easing, Paras Anand, pension liabilities, plans for quantitative easing, prices of precious metals, purchasing power of fiat currencies, quantitative easing, risk based assets, what is quantitative easing, who is Paras Anand
Posted in General, quantitative easing | 5 Comments »
Stories Deserving More Attention: Did You See This?
Posted by Larry Doyle on April 8th, 2013 8:21 AM |
I will reference these stories now and will certainly come back to many, if not all, of them in the near future. The items include:
1. In what might only be compared to trying to turn around the Titanic on one of your local streets, the Bank of Japan is launching a “quantitative easing on steroids” program. The goal of “all this juice” is to generate a 2% rate of inflation in the next two years from what has been a two-decade deflationary cycle. (more…)
Tags: bank of Japan program to promote inflation, Bank of Japan quantitative easing, Bill Cohan commentary on bank regulators, black swan, decline in the labor participation rate, deflation in Japan, disability claims, Japanese economy in deflation, Japanese equity markets, Joe Sciddurlo FINRA whistleblower, Joe Sciddurlo lawsuit against FINRA, Joe Sciddurlo questions authority at FINRA, lawsuit against FINRA, Nassim Taleb comment on Mary Schapiro, permanent underclass in America, quantitative easing on steroids, rural poverty, support for asset markets, urban graduation, yen carry trade
Posted in Banking Institutions, Economy, Education, Employment, FINRA, General, Mary Schapiro | 6 Comments »