Archive for November, 2010
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 November 3rd, 2010 8:18 AM |
With the 2010 election results now in the books, what is next for the ‘wizards in Washington?’
Gearing Up For 2012
The country has spoken. Did those on Capitol Hill and at 1600 Pennsylvania Avenue listen?
The pursuit of truth, transparency, and integrity NEVER ends.
Larry Doyle
Please subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.
I have no affiliation or business interest with any entity referenced in this commentary. As President of Greenwich Investment Management, an SEC regulated privately held registered investment adviser, I am merely a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.
Posted in General | 1 Comment »
Posted by Larry Doyle on November 2nd, 2010 9:08 AM |
Will there soon be a run on U-Hauls in Washington DC?
Later this evening we will learn just how many incumbents in Washington are sent packing. In the process, we will assuredly hear from political pundits on both sides of the aisle as to what Americans are saying with their vote. In my opinion, we can dismiss the pundits and the politicians alike. While we are at it, we can throw a heap of cold water over the media as well. How so? Why’s this?
The simple fact is the rage coiling within the American populace has been developing for well over a year and today that rage will be released. The force multiplier of that rage will send a message to Washington and every corner of our great nation that Americans are beyond fed up with politics as usual and the crony capitalism that has flourished within that system. This rage is far different than anything I have ever witnessed in my lifetime. I highlighted it a year ago. While the reality of the rage was clearly evident in late 2009, our political representatives from both sides of the aisle did little to nothing to address it. Today they will pay the price for their lack of attention to the American public.
Let’s take a quick look back to the pulse of our nation in November 2009. Has that pulse remained the same? (more…)
Tags: america is outraged, americans feel disenfranchised, anti-incumbent fervor in America, Congressional elections November 2 2010, crony capitalism, disenfranchisement in america, failures within financial regulatory system, force multiplier in november 2 2010 vote, go vote, Goldman Sachs CEO LLoyd Blankfein, honesty and integrity in america, Jonathan Weil of Bloomberg, lack of transparency within our system, Larry Doyle, let freedom ring, media coverage of november 2 vote, midterm elections, moral decay within america, november 2 2010 vote, Obama redistribution, political pundits transalte the american vote define, populist rage in america, rage in america, referendum on obama november 2 2010, SEC MAry Schapiro, Sense on Cents, Susan Antilla of Bloomberg, Tea Party movement on november 2 2010, truth transparency and integrity, U-Hauls in Washington DC, Wall Street-Washington incest, Washington Wall Street incest, what are americans saying with their vote, what do americans feel, what's driving today's vote, what's fueling america's rage
Posted in General | 5 Comments »
RSS Feed
Twitter
Facebook
Email
Home
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 »