RSS Feed
Twitter
Facebook
Email
HomeHow Big Is the Punch Bowl?
Posted by Larry Doyle on October 7th, 2010 1:00 PM |
Party on.
In watching a midday Bloomberg interview, the host Tom Keene asked his guests just how big the punch bowl will be that Fed chair Ben Bernanke puts in front of investors at the next Fed meeting. The punch bowl being the size of the highly anticipated second round of Federal Reserve quantitative easing that is driving interest rates lower and asset prices higher.
While this punch bowl may be smaller than the initial party launched in 2009, the fact is expectations are that this punch bowl will run anywhere from $500 billion to $1 trillion in size. That is a lot of liquidity to keep the Wall Street party going. However, that figure is also a very strong indication as to the enormity of the underlying problems embedded in our economic foundation. (more…)
Without Job Growth, Here Comes the “QE2”
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…)
Where Is The Market Headed?
Posted by Larry Doyle on August 2nd, 2010 9:59 AM |
In commentary written specifically for Sense on Cents, our friends from Forextraders.com share some fabulous insights and perspectives on the ups and downs of the equity markets.
The Stock Market Is In Limbo—Which Way Will It Go?
An incredibly positive corporate earnings season in July has helped the market to discount immediate fears of a possible double dip recession. The strong corporate earnings reports, however, had to battle Ben Bernanke’s very dovish remarks, as he emphasized the slowing recovery in the U.S. and raised the possibility of Federal Reserve instituting further quantitative easing measures. Those bearish remarks by the Fed President regarding the possible future direction of the U.S. economy did cause equity markets to stall in the 3rd week of July, but now in the final week of the month, equity markets are again taking a shot at the HI’s from the month of June. (more…)
