Posts Tagged ‘QE2’
Posted by Larry Doyle on February 10th, 2011 7:35 AM |
For those critical of Ben Bernanke and his massive bubble inducing, asset inflating quantitative easing program, Ben and his Federal Reserve friends have something to say to you. What wisdom do these banking behemoths have to share? Are you sitting down? In so many words, Bernanke and company offered that ‘if you think we’re bad, you should really focus on the clowns who have run up the out of control federal deficit.’
Wow!
Do two wrongs make a right? Does digging one hole get us out of another? Does a series of left hand turns ultimately bring us right back to where we began? Does anybody in Washington have the character to address our real structural problems? Does pointing fingers really get us anywhere? Why are we faced with these questions and problems? A lack of real leadership. (more…)
Tags: Al Broaddus, Ben Bernanke February 10 2011, Ben bernanke remarks to Congress February 9 20110, Bernanke makes Sure fed reminds Congress Deficit Bigger Than QE2, do we have any statesmen, federal deficit, Federal Reserve, House Speaker John Boehner, John Lonski of Moody's, Larry Doyle, leadership in Washington, no sense of urgency, Pete Peterson, Peterson Foundation, QE2, quantitative easing program, sense of urgency, Sense on Cents, Washington leaders, who are our statesmen
Posted in General | 2 Comments »
Posted by Larry Doyle on November 22nd, 2010 7:55 AM |
The Federal Reserve may be America’s greatest enigma.
The Fed would clearly much prefer to remain opaque in the midst of our current economic turmoil. However, even the ‘all powerful’ Fed is unable to withstand the pressure from those seeking answers and clarity while navigating our economic landscape.
I have often tried to highlight the Fed’s shortcomings and inconsistencies. From the Fed’s overly optimistic economic projections to its unwillingness to openly admit the ongoing structural issues and changes within our economy, I believe the Fed has been playing politics for far too long and well beyond its goals and mandates. (more…)
Tags: Cleveland Federal Reserve, costs and benefits of quantitative easing, credibility of Federal Reserve, credibility of Tim Geithner, did Japan use quantitative easing, Fed's growth forecasts and unemployment projections, Fed's increasing pessimism, Federal Reserve, federal reserve governors, Federal Reserve revises economic forecasts November 22 2010, Federal Reserve's economic forecast, Federal Reserve's economic projections, FOMC, FOMC members, future unemployment, How does the Federal Reserve operate, Pessimistic Fed to Slash Growth Forecasts, political pressure on Federal Reserve, QE2, the fed, what does quantitative easing do to the economy, who is Sandra Pianalto, why is the Federal Reserve utilizing quantitative easing
Posted in Federal Reserve, General | 7 Comments »
Posted by Larry Doyle on November 11th, 2010 10:51 AM |
That haze hanging over Washington DC is not the residue of last week’s elections, it is the less than sanguine outlook of investors on the policies and programs being put forth by President Barack Obama and our lead central banker, Fed chair Ben Bernanke. How hazy? Well, close to two thirds of those polled recently by Bloomberg are pessimistic about Barack’s policies and how they affect the investment climate in the United States. More than three quarters of those polled believe the Fed’s newly launched round of quantitative easing will have little or no benefit on unemployment. Ouch!!
In regard to the greenback, almost seven in ten polled believe the U.S. is deliberately trying to weaken the value of our dollar relative to other currencies. Who else believes this? (more…)
Tags: Alan Greenspan on US dollar, Barack Obama, Ben Bernanke, bloomberg investor poll november 2010, Bloomberg poll november 11 2010, Greenspan Warns Over Weaker Dollar, QE2, quantitative easing impact on unemployment, strength of renminbi, value of dollar
Posted in General | No Comments »
Posted by Larry Doyle on November 8th, 2010 7:41 AM |
Quantitative easing is merely another tool to adjust monetary policy, correct? Perhaps. The question begs, then, after an initial round of a trillion-plus quantitative easing failed to stimulate the economy why should we expect any differently this time. Great question. Let’s navigate.
Quantitative easing involves the purchase of Treasury and mortgage securities by the Federal Reserve in an attempt to inject liquidity into the system, prop asset prices, and spur consumer demand. Or so they say. Well how is the overall level of credit in our economy trending?
The downward slope in the graph is an indication of both lessened credit availability and also lessened credit demand. The quantitative easing should directly address this reality, correct? I am not so sure about the “directly” aspect of that statement. In fact, I will go a step further and say I think the Fed is being less than forthright with the nation. If the Fed truly wanted to inject liquidity and capital into our economy and allow it to flow through to small businesses directly there are much better ways of doing it than by purchasing overvalued Treasury and mortgage securities. (more…)
Tags: Alan Greenspan, Ben Bernanke, Bernanke Attempts to Soothe Doubters, Commercial Bank Credit, conference organized by Federal Reserve bank of Atlanta and Rutgers University, creating inflation, credit availability, credit demand, credit trends in economy, E. Gerald Corrigan, Fed summit in Georgia, Federal Reserve Bank Credit, Federal Reserve monetary policy, QE2, quantitative easing, swapping Treasurys for other assets, transparency within the Federal Reserve, what assets does the Federal Reserve purchase via quantitative easing, what is the federal reserve really buying
Posted in General, quantitative easing | 5 Comments »
Posted by Larry Doyle on November 5th, 2010 9:49 AM |
Life is ultimately a matter of perspective.
Two people can look at a situation and see decidedly different things. Having been traveling for the better part of this week, I got home late last night to check on how markets closed yesterday. When I saw that equity markets rallied 2 per cent, commodities rose a like amount, and bonds also increased in value, I was not surprised but I was not thinking that I had reason to be cheerful either. I merely raised my eyebrows and went to bed knowing full well that to many people in our nation, these market movements would have little to no impact on their daily lives and immediate futures.
Am I being excessively pessimistic in my assessment? (more…)
Tags: Bernanke, bond market reaction to quantitative easing, central bankers comments about quantitative easing, economic impact of quantitative easing, effect of quantitative easing, emerging markets impact from quantitative easing, equity market reaction to quantitative easing, Geithner, impact of quantitative easing, markets reaction to quantitative easing, Martin Feldstein on quantitative easing, Obama, QE2, quantitative easing, real cost of quantitative easing
Posted in General | 7 Comments »
Posted by Larry Doyle on October 29th, 2010 5:56 AM |
Here we are a full three years into our economic malaise, Uncle Sam has thrown everything and the kitchen sink at the economy yet we have little to no traction in terms of growth and momentum. Will another trillion dollars of liquidity do the trick? Well, while the Fed’s liquidity may move markets, will it move the economy? Don’t bet on it. The Fed and its brethren on Wall Street and in Washington are reluctant to truly level with the American people. How so?
Our nation is experiencing a serious structural change in our economy — not a mere ‘enormous downturn’ in the midst of the business cycle. If our central bankers and government officials were to emphasize this point, it may cause a sharper retrenchment in our current growth but it would likely lead to a quicker rebound. Before we get into why our bankers and their political cronies are reluctant to make this acknowledgement, let’s take the pulse of an array of venture capitalists, money managers, and others who provide the capital to a wide array of companies. What do these individuals think the economic impact of another round of quantitative easing might be? (more…)
Tags: Blackstone Group, Buttonwood Gathering, central bankers, Cliff Asness, Cliff Asness of AQR CApital MAnagement, Colm O' Shea, Comac Capital LLP, Economic Stimulus, Fed liquidity, Fed policy of QE2, Fed's credibility, Federal Reserve policy, how to stimulate the economy, Pimco Bill Gross, Pimco Likens US to Ponzi Scheme, QE2, quantitative easing, quantitative easing 2, quantitative easing policy, redistribution, Schwarzman Says Fed Easing Wont Make Much Difference, stimulating the economy, structural change vs business cycle, The Economist, Tony James, UK based The Telegraph, Wall Street Washington relationship, Wall Street-Washington incest
Posted in General | 7 Comments »
Posted by Larry Doyle on October 21st, 2010 6:47 AM |
All hail the mighty and powerful Federal Reserve!!
Is that right?
Are we all supposed to bow down and prostrate ourselves at the throne of Ben Bernanke and assume he is ‘all knowing’? The fact is the Federal Reserve has assumed a mantle of being ‘all powerful’ but who in our country is willing to challenge the Federal Reserve? Are we supposed to merely turn over the economic fortunes of our nation and our children’s future to one individual and one institution without aggressively calling them on the carpet? What happened to the calls for increased Fed transparency? What happened to the pressure on the Fed to justify their actions? The silence is deafening.
Those with a degree of sense on cents understand and appreciate the following: (more…)
Tags: Ben Bernanke, crony capitalism, Fed's Summary of Economic Projections, federal open market committee, Federal Reserve, FOMC, Larry Doyle, QE2, quantitative easing by Federal reserve, Sense on Cents
Posted in General | 5 Comments »
Posted by Larry Doyle on August 6th, 2010 9:46 AM |
This morning’s Unemployment Report further confirms that our economy remains burdened by our Sense on Cents description of ‘walking pneumonia.’ While this month’s report was decidedly weaker than expectations, once again we witness downward revisions to prior reports. Do you find it strange that more often than not much of the economic data released has displayed this tendency to have downward revisions to prior reports. Think the data is heavily massaged? You think?
Let’s navigate this morning’s report thanks to The Wall Street Journal’s Market Data page: (more…)
Tags: august 6 non-farm payroll report, August 6 unemployment report, average hours worked august 6 2010, employment report august 6 2010, Larry Doyle, market reaction unemployment report august 6 2010, more quantitative easing, nfp august 6 2010, QE2, quantitative easing, Sense on Cents, U-6 august 6 2010, unemployment report august 6, unemployment revisions august 6 2010, where are the jobs
Posted in Employment, General, Unemployment | 7 Comments »
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The Real Cost of Quantitative Easing
Posted by Larry Doyle on November 5th, 2010 9:49 AM |
Life is ultimately a matter of perspective.
Two people can look at a situation and see decidedly different things. Having been traveling for the better part of this week, I got home late last night to check on how markets closed yesterday. When I saw that equity markets rallied 2 per cent, commodities rose a like amount, and bonds also increased in value, I was not surprised but I was not thinking that I had reason to be cheerful either. I merely raised my eyebrows and went to bed knowing full well that to many people in our nation, these market movements would have little to no impact on their daily lives and immediate futures.
Am I being excessively pessimistic in my assessment? (more…)
Tags: Bernanke, bond market reaction to quantitative easing, central bankers comments about quantitative easing, economic impact of quantitative easing, effect of quantitative easing, emerging markets impact from quantitative easing, equity market reaction to quantitative easing, Geithner, impact of quantitative easing, markets reaction to quantitative easing, Martin Feldstein on quantitative easing, Obama, QE2, quantitative easing, real cost of quantitative easing
Posted in General | 7 Comments »