Preview Of Fed Open Market Committee: Only The Stock Market Is Helped

Confounded Interest ^ | 10/24/2013 | Anthony B. Sanders

[whitedog57]

The Federal Open Market Committee meets in the coming week to discuss monetary policy after the 16-day U.S. government shutdown took at least $24 billion out of the economy. The Federal Reserve is likely to delay lowering its $85 billion in monthly bond purchases until March, according to a Bloomberg survey.

Sorry to break this to you, but the downward trend has been building since 2000. Here is a chart of The Fed’s balance sheet (white line) which has been growing rapidly since late 2008. The other indicators:

1. the 10 year Treasury yield (green): it has been falling steadily … until May 1st. And is now falling again. 2. Labor Force Participation rate (purple): it has been falling steadily sans a slight rally in 2007. 3. M2 Money Velocity (yellow): it has been falling steadily sans a slight rally in 2006.

charming

And if we look at The Fed Balance Sheet against the following variables, we find that same declines:

4. Homeownership rate: it peaked in Q4 2005. 5. Mortgage lending: it peaked in 2004. 6. Mortgage purchase application: it peaked in 2005.

fedbalstuff

So, the massive expansion of The Fed’s balance sheet has helped … the stock market!

spxfarbst

[whitedog57]

Yellin will just keep the stock market rolling. Everything else SUCKS!

[upchuck]

The Federal Open Market Committee meets in the coming week to discuss monetary policy after the 16-day U.S. government shutdown took at least $24 billion out of the economy. The Federal Reserve is likely to delay lowering its $85 billion in monthly bond purchases until March, according to a Bloomberg survey.

Sorry to break this to you, but the downward trend has been building since 2000. Here is a chart of The Fed’s balance sheet (white line) which has been growing rapidly since late 2008. The other indicators:

1. the 10 year Treasury yield (green): it has been falling steadily … until May 1st. And is now falling again.
2. Labor Force Participation rate (purple): it has been falling steadily sans a slight rally in 2007.
3. M2 Money Velocity (yellow): it has been falling steadily sans a slight rally in 2006.

And if we look at The Fed Balance Sheet against the following variables, we find that same declines:

4. Homeownership rate: it peaked in Q4 2005.
5. Mortgage lending: it peaked in 2004.
6. Mortgage purchase application: it peaked in 2005.

So, the massive expansion of The Fed’s balance sheet has helped … the stock market!

[preacher]

These news items about how bad the economy is doing get almost almost zero coverage by the MSM. Imagine the 24/7 coverage they’s be giving these stories if there was a Republican President.