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Keyword: bernanke

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  • GCC 'Millionaire' Caught Begging in Saudi Arabia

    07/22/2014 4:38:20 PM PDT · by nickcarraway · 6 replies
    Emirates 24/7 ^ | Tuesday, July 22, 2014
    Police found bank deposits receipts worth Dh1.2m and expensive four-wheel car with himSaudi police arrested an Arab man for begging although he had in excess of SR1.2 million (Dh1.2 million) and an expensive four-wheel vehicle. Police said the unnamed man, a resident of a nearby Gulf country, is visiting the Gulf kingdom on a tourist visa with his wife and three children, adding that he was found to be staying in a luxury furnished apartment in the Western Saudi port of Yanbu. “We found large sums of cash with him and receipts for bank deposits…he had a total of more...
  • Ben Bernanke charging $200,00/hour to talk to bankers on the speaking circuit (Getting his cut)

    06/01/2014 7:52:48 PM PDT · by equalator · 8 replies
    Daily Mail UK ^ | 5-24-2014 | Staff
    Bernanke used to make $200,000 a year during his eight years as Chairman of the Federal Reserve. He can make that in a single hour now on the international speaking circuit. He left office in February. By March, he was making up to three stops a week around the world. Bernanke is walking a well-worn path of former policy makers who leave power. Former presidents, former cabinet officials and former members of Congress have all turned their experience in public service into millions.
  • Einhorn Finds Dinner Chat With Bernanke ‘Frightening’

    05/06/2014 3:37:20 PM PDT · by Red in Blue PA · 7 replies
    David Einhorn, manager of the $10 billion Greenlight Capital Inc., said he found a recent dinner conversation with former Federal Reserve Chairman Ben S. Bernanke scary. "I got to ask him all these questions that had been on my mind for a long time," Einhorn said in an interview today with Erik Schatzker and Stephanie Ruhle on Bloomberg Television, referring to a March 26 dinner with Bernanke. "It was sort of frightening because the answers were not better than I thought they would be." Einhorn, 45, has been critical of Bernanke's willingness to leave interest rates near zero for more...
  • Growing gap between the financial markets and the real economy

    03/09/2014 7:32:57 AM PDT · by Starboard · 11 replies
    Aero Hedge ^ | 03/08/2014 | Seth Klarman
    Article based on excerpts from Baupost Group's Seth Klarman letter. "there is a growing gap between the financial markets and the real economy...and the overall picture is one of growing risk and inadequate potential return almost everywhere one looks..."
  • Bernanke Leaves Fed with Record Balance Sheet of $4,102,138,000,000

    02/01/2014 2:01:10 AM PST · by Olog-hai · 17 replies
    Cybercast News Service ^ | January 31, 2014 - 4:21 PM | Ali Meyer
    Retiring Federal Reserve Chairman Ben Bernanke, who was replaced by Janet Yellen as of today, is leaving the Federal Reserve with an unprecedented $4,102,138,000,000 in total assets on its balance sheet, up 391 percent from the $834,663,000,000 in total assets the Fed showed on its balance sheet when Bernanke took over as chairman in February 2006. Much of the increase in the Fed’s assets has come in the form of U.S. Treasury securities and Freddie Mac and Fannie Mae mortgage-backed securities that the Fed purchased over the last five years in its attempts to stimulate the economy. …
  • Why Bernanke Should Be Thanked

    01/31/2014 6:38:36 AM PST · by SeekAndFind · 18 replies
    New York Times ^ | 01/30/2014 | Steve Rattner
    Ben S. Bernanke ascended to the chairmanship of the Federal Reserve eight years ago as a little-known — albeit distinguished — Princeton economics professor who had notched just three years of federal public service. When he takes his leave this week, having presided over his final meeting of the Fed’s policy-making committee, he will depart as one of the finest chairmen in the institution’s hundred year history, having played a central role in averting a financial meltdown and lifting the nation out of recession.
  • Obama vs. Obama

    01/20/2014 9:36:27 AM PST · by afraidfortherepublic · 3 replies
    The American Thinker ^ | 1-20-14 | J. R. Dunn
    A major peculiarity of Obama's recent promises involving his upcoming "Year of Action" is that the chief enemy he's sworn to overcome is none other than... Barack Obama. Consider "income inequality." As far as this can be said to actually exist, it's a function of certain sectors of the financial industry reaping massive windfalls over the past few years while the rest of the country has stagnated under the burden of the recession. So who is responsible for this state of affairs? Consider the trillion and a half dollars handed over to the banks and other financial institutions shortly after...
  • Why are my Chicken Thighs suddenly So Expensive?

    12/21/2013 6:42:24 PM PST · by lee martell · 142 replies
    Dec. 21 2013 | Lee Martell
    Today I went to a local supermarket in the Terra Linda area of Marin County, a little north of San Francisco. This large grocery store is but one of many belonging to a very popular grocery retailer. So, I bought six pounds, and eight ounces of chicken thighs at $1.79 per pound. After a little walk around comparison, I see most are within this price range. I end up paying $10.88, minus $1.21 with my Club Card, that equals a grand sum total of $9.67 out of pocket. The store is a great place to shop. The areas are clean....
  • Dow, S&P end at record highs after Fed's stimulus cut

    12/18/2013 1:16:37 PM PST · by NormsRevenge · 36 replies
    Yahoo Finance ^ | 12/18/13 | Angela Moon - Reuters
    NEW YORK (Reuters) - The Dow and the S&P 500 closed at all-time highs on Wednesday after the Federal Reserve announced a small reduction in its stimulus program, confirming that the U.S. economy was on firm footing.
  • Taper Tantrum: The Fed, Inflation, Unemployment and House Prices

    12/15/2013 1:22:49 PM PST · by whitedog57 · 6 replies
    Confounded Interest ^ | 12/15/2013 | Anthony B. Sanders
    The Federal Reserve Open Market Committee meets on Tuesday and Wednesday of this week. To taper or not to taper, that is the question. Hamlet-to-be-or-not-to-be3 Let’s take a look at inflation thus far. Since 1947, there have been only three periods of deflation where the consumer price index (CPI) has fallen for consecutive months: 1949-1950, 1954-1955 and most recently, 2009. inflationcpi121413 Notice that inflation (as defined by year–over-year changes in the consumer price index) has been declining since September 1981 when inflation hit 11%. The latest measure of inflation is 0.9% YoY for October 2013. At the same time, house...
  • The Bernankeburg Omen: The Hindenburg, Elliott Wave And The Fed Balance Sheet

    12/06/2013 4:55:54 PM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 12/06/2013 | Anthony B. Sanders
    The S&P 500 stock market index rose a blistering +1.12% today on positive economic news, albeit much of it seasonal. The run up in stock prices following the collapse in 2008 (both stock market and house prices) has fueled speculation of another Hindenburg Omen event. That is, another stock market correction. But with Ben Bernanke and The Fed supporting asset bubbles with the expansion of The Fed’s Balance Sheet (green dotted line), investors continue to roll the dice on the stock market rising. Likewise, the Elliott Wave is being sustained by The Fed’s Balance Sheet. Let’s see what happens when...
  • Yellen Approved By Senate Banking Panel, Philly Fed Index Plunges To 6.5

    11/21/2013 8:31:15 AM PST · by whitedog57 · 7 replies
    Confounded Interest ^ | 11/21/2013 | Anthony B. Sanders
    Janet Yellen has been approved as Federal Reserve Chair by the US Senate Banking Panel. And the Philadelphia Fed Index plunged to 6.5 in November from 19.8 in October. Economists were expecting a read of 15. Philly Fed Nov More troubling in the Philadelphia Fed report is the decline in average employee workweek. Philly Fed Details Oct Of course, Janet Yellen being approved by the Senate Banking Panel has nothing to do with the Philly Fed Index plunge. Or does it? Yellen has been on the Bernanke QE team and we know that it has not been successful restoring life...
  • The Fed's Forward (Mis)Guidance - Muddy Water Clarity On QE

    11/20/2013 6:03:26 PM PST · by whitedog57 · 2 replies
    Confounded Interest ^ | 11/20/2013 | Anthony B. Sanders
    The Federal Reserve released the minutes of the most recent meeting today. The prognosis? Clear as a muddied lake. As clear as smog-covered sky of a thermal inversion summer. In other words, total confusion. The Federal Reserve of Chicago’s Charles Evan tweeted yesterday his opinion: #CharlesLEvans our purchases will continue to be open ended. We may need to purchase 1.5 trillion in assets until January 2015. Now for the minutes and the possibility of a taper: “During this general discussion of policy strategy and tactics, participants reviewed issues specific to the Committee’s asset purchase program. They generally expected that the...
  • Yellen Strikes Out

    11/16/2013 8:37:31 AM PST · by george76 · 11 replies
    The New York Sun ^ | November 14, 2013
    Vice Chairman Yellen’s testimony before the Senate this morning moves us to oppose her confirmation to succeed Chairman Bernanke at the Federal Reserve. We don’t mind saying it’s an odd position for us, since we have great regard for her capacity as a forecaster, her character, and her comportment. She displays none of condescension that Mr. Bernanke so often allowed to show (we once expressed surprise that he wasn’t held in contempt). What transports us into the opposition is Mrs. Yellen’s truculence on the issue of auditing the Fed. ... Senator Vitter .. speaks for a faction in the upper...
  • Fed maintains strong stimulus as U.S. growth stumbles

    10/30/2013 11:37:27 AM PDT · by NormsRevenge · 41 replies
    Yahoo! News ^ | 10/30/13 | Pedro da Costa and Alister Bull - Reuters
    WASHINGTON (Reuters) - The Federal Reserve extended its support for a slowing U.S. economy on Wednesday, sounding a bit less optimistic about growth and saying it will keep buying $85 billion in bonds per month for the time being. In announcing the widely expected decision, Fed officials nodded to weaker economic prospects due in part to a fiscal fight in Washington that shuttered much of the government for 16 days earlier this month. The Fed indicated the recovery in housing had lost some steam, while noting some reversal in a recent spike in borrowing costs. "Available data suggest that household...
  • Fed Policy: The Good, The Bad And The Ugly (Declining Real Household Income, Mortgage Volume)

    10/26/2013 7:31:18 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | Anthony B. Sanders
    The next Federal Reserve Open Market Committee meeting in on October 30th, a preview of Halloween. Despite the lack of evidence of positive growth in the economy, The Fed will likely keep on printing. Two of The Fed’s tools in its arsenal are the Fed Funds rate and longer-term asset purchases (aka, quantitative easing). So, what is the record on the employment front with regard to Fed policies? Let’s take a look. Here is a chart of the unemployment rate (white line) compared to the Fed Funds Target rate (gold) and The Fed’s Balance Sheet (longer-term asset purchases). u3fedpol2 So...
  • Preview Of Fed Open Market Committee: Only The Stock Market Is Helped

    10/24/2013 5:00:52 PM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/24/2013 | Anthony B. Sanders
    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...
  • Existing Home Sales Decline By Most Since June '12, Affordability Lowest Since QE1 Began

    10/21/2013 10:10:24 AM PDT · by whitedog57 · 7 replies
    Confounded Interest ^ | 10/21/2013 | Anthony B. Sanders
    According to the National Association of Realtors, existing home sales fell and fell by the most since June 2012. ehssep13 And now for the bad news. Home affordability plunged to the lowest level since the end of 2008, and the beginning of The Fed’s quantitative easing (QE1) program. haffor102113 Of course, increasing home prices coupled with rising mortgage rates will put a damper on affordability. While the Freddie Mac Mortgage survey rate is still lower than it was at the end of 2008, house prices (using CoreLogic’s home price index) are higher than at the end of 2008. loanhpfreddieinded We...
  • US Dollar Hits 8-1/2-month Low (But Nothing Next To 2002-2008 Dollar Collapse)

    10/19/2013 8:20:27 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/19/2013 | Anthony B. Sanders
    The US dollar hit 8-1/2-month low on worries about U.S. economy, the headline blares. usdeur101913 True, but the USDEUR rate took its biggest beating during the 2002-2008 period. But since the latter half of 2008, the dollar has been floating around in a relatively narrow band (although it seems larger on a day-to-day basis). bfmB3 And if we look at a longer term pictures of the US dollar spot rate (DXY), we see the Reagan economic recovery and asset bubble and then the Clinton/Bush economic recovery and asset bubble. dxy1960s But the asset bubble that followed the Clinton economic growth...
  • The Fed Is in Desperate Need of Change - Sadly Janet Yellen Won’t Be It

    10/13/2013 9:37:19 AM PDT · by Kaslin · 3 replies
    Townhall.com ^ | October 13, 2013 | Mark Calabria
    President Obama has now officially announced his intention to nominate Janet Yellen, current vice chair of the Federal Reserve, to succeed current chair Ben Bernanke. And while Yellen is likely to receive a frosty reception from Republicans, she has a very good chance of garnering the necessary 60 votes needed to achieve Senate confirmation. She will of course break new ground as the first female head of the Fed, but will also sadly represent a continuation of the Fed’s current policies and long history of repeated failures. If you’ve made a fortune riding the various Fed-induced asset bubbles, Yellen...
  • Yellen hints at boosting inflation to create jobs (Obama's Federal Reserve chairwoman nominee)

    10/09/2013 3:13:15 PM PDT · by 2ndDivisionVet · 81 replies
    The Daily Caller ^ | October 9, 2013 | Tim Cavanaugh, executive editor
    Federal Reserve chair nominee Janet Yellen Wednesday suggested that she will put a renewed emphasis on “jobs” in her role as Chairwoman of the U.S. Federal Reserve Bank. President Obama nominated Yellen, a vice chairwoman of the Board of Governors of the Federal Reserve System and former president and CEO of the Federal Reserve Bank of San Francisco, to run the U.S. central bank Wednesday. If confirmed by the Senate, Yellen will become the first woman to run the Fed in its hundred-year history. Yellen is expected to accelerate the devaluation of the dollar by continuing or even expanding the...
  • Super Premium Treasuries and Janet Yellen

    10/08/2013 6:39:44 PM PDT · by whitedog57 · 8 replies
    Confounded Interest ^ | 10/08/2013 | Anthony B. Sanders
    Here is an interesting idea from UBS interest rate strategists Mike Schumacher and Boris Rjavinski. It is called “super premium Treasuries.” Here is how it works. 1. The U.S. government takes in $277 billion in tax revenues each month, and spends $452 billion each month, for a monthly deficit of around $175 billion. 2. It also has, on average, call it $100 billion of Treasury notes coming due each month. Instead of just rolling those Treasuries — paying them off at 100 cents on the dollar by issuing new Treasuries at 100 cents on the dollar — it should pay...
  • Obama to nominate Yellen as Bernanke successor

    10/08/2013 5:32:26 PM PDT · by Olog-hai · 8 replies
    Associated Press ^ | Oct 8, 2013 8:23 PM EDT | Martin Crutsinger and Jim Kuhnhenn
    President Barack Obama will nominate Federal Reserve vice chair Janet Yellen to succeed Ben Bernanke as chairman of the nation’s central bank, the White House said Tuesday. Yellen would be the first woman to head the powerful Fed, taking over at a pivotal time for the economy and the banking industry. … Yellen emerged as the leading candidate after Lawrence Summers, a former Treasury secretary whom Obama was thought to favor, withdrew from consideration last month in the face of rising opposition. Yellen, 67, would likely continue steering Fed policy in the same direction as Bernanke. A close ally of...
  • Gold, Bernanke, The Debt Ceiling Monologue And Dien Bien Phu

    10/07/2013 10:49:24 AM PDT · by whitedog57 · 15 replies
    Confounded Interest ^ | 10/07/2013 | Anthony B. Sanders
    Ben S. Bernanke, the world’s most-powerful central banker, says he doesn’t understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011. Bernanke, who holds economics degrees from Harvard College and the Massachusetts Institute of Technology and led the Federal Reserve through the biggest financial disaster since the Great Depression, told the Senate Banking Committee in July that “nobody really understands gold prices and I don’t pretend to really understand them either.” Central banks, which own 18 percent of all the gold ever mined, will...
  • As He Clips Our Coins, Bernanke Steals A Page From Nero's Playbook

    10/01/2013 9:38:18 AM PDT · by george76 · 82 replies
    Forbes ^ | 9/25/2013 | Keith McCullough
    In 64 A.D., in a naïve attempt to deceive the populace, Nero decreased the silver content in the coins and made silver and gold coins slightly smaller ... central planners have been clipping coins and devaluing the The People’s hard-earned currency for at least two thousand years. The Roman Emperor Nero of course devalued the Roman currency for the first time in the Empire’s history. What was it that gave both the Roman and Ottoman Empires the audacity to plunder the purchasing power of their people? After 200 years of operating as an independent bank, what made the British Empire...
  • Deer In Headlights: Markets Trend Downwards After Fed’s Confusing Taper .. Or No Taper

    09/24/2013 3:05:05 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 09/24/2013 | Anthony B. Sanders
    The markets were stunned by The Fed’s decision last week not to begin tapering. Investors reacted … like deer in the headlights. deerheads Take the Dow Jones Industrial Average. After initial optimism on The Fed’s “No Taper” message, it has turned down. djiapostfomce The 10 year Treasury yield dropped with The Fed announcement and has continued to drift downwards. ust10postfomc As would be expected, both mortgage rates (yellow) and the Fannie Mae 30 year current coupon rate have drifted downwards. mtgratepostfomc Gold? Gold prices surged initially but had drifted downwards to about pre-announcement levels. goldpostfomc The good news? Both the...
  • Janet Yellen And The Weak Money Parade (Money Multiplier And Velocity At All-time Lows)

    09/21/2013 9:06:10 AM PDT · by whitedog57 · 15 replies
    Confounded Interest ^ | 09/21/2013 | Anthony B. Sanders
    Poor Larry Summers. He withdrew his candidacy as the Federal Reserve Board Chairman over fears of a brutal Senate confirmation hearing. Now we are left with former University of California labor economist Janet Yellen as the leading candidate. Yellen was (allegedly) the architect of the quantitative easing programs to reduce unemployment (better known as the weak money rally). And Yellen is the darling of the labor unions because of her activist policies on labor. “The philosophy of Janet Yellen is activism of government policy to achieve objectives,” said Allen Sinai, president of Decision Economics Inc. Oh great. We have activist...
  • White House Launches Janet Yellen Blitz PR Campaign

    09/21/2013 8:29:38 AM PDT · by Errant · 8 replies
    Zero Hedge ^ | 21 September, 2013 | Tyler Durden
    There was a time, long ago, when some still believed the myth that the Federal Reserve, and the selection of its Chairman, were supposed to be apolitical and impartial. Luckily, that was a long time ago, because otherwise some may question not only the logic, but the motives, behind what the media reports is an aggressive push by White House officials to "muster support among Democrats on the Senate Banking Committee to back Federal Reserve Vice Chair Janet Yellen," according to Reuters which cited three sources said on Friday, laying the groundwork for her expected nomination to the Fed's top...
  • Buffett lauds Bernanke but laments lack of investment bargains

    09/19/2013 3:39:19 PM PDT · by posterchild · 15 replies
    Reuters ^ | Arggg Sept 19, 2013 | Jonathan Stempel and Peter Rudegeair
    The billionaire investor spoke one day after the central bank surprised investors by postponing its expected wind-down of monetary stimulus, which has in five years more than tripled the Fed's balance sheet to above $3.6 trillion. "Since the panic of five years ago, he's done a terrific job," Buffett said on CNBC television in a joint interview with Brian Moynihan, chief executive of Bank of America Corp. Asked if he would reappoint Bernanke when his term expires, Buffett said: "That's what I would do." Nevertheless, at an event later Thursday afternoon at Georgetown University, Buffett said that the Fed's eventual...
  • Bernanke Wants 2% Inflation in a Deflationary World (Long article)

    09/20/2013 9:55:10 AM PDT · by Kaslin · 9 replies
    Townhall.com ^ | September 20, 2013 | Mike Shedlock
    Steen Jakobsen, Chief economist at Saxo Bank in Denmark, pinged me today with his thoughts on "the morning after" and "price discovery". In my opinion these two paragraphs of the FOMC Statement are the key ones: The Committee sees the downside risks to the outlook for the economy and the labor market as having diminished, on net, since last fall, but the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labor market. The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic...
  • Mr. Bernanke Gets the Jones: Every time he wants to taper, he can't

    09/20/2013 5:29:07 AM PDT · by SeekAndFind · 13 replies
    New York Sun ^ | 09/20/2013
    Chairman Bernanke: “We could raise interest rates in 15 minutes if we have to. So there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation at the appropriate time. Now that time is not now.”Scott Pelley, CBS 60 Minutes: “You have what degree of confidence in your ability to control this?” “100%.”* * *No doubt that exchange of 2010 will go down as the most famous of Mr. Bernanke’s tenure as chairman of the Federal Reserve. It is the context in which to savor — if that is the word — the news...
  • Bernanke’s Bluff: Global Sovereign Yields Plummet (UK, Italy, Greece), Gold And Silver Rise

    09/19/2013 12:02:45 PM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 09/19/2013 | Anthony B. Sanders
    Bernanke’s surprise (NO TAPER) resulted in a large decline in the 10 year Treasury yield yesterday and a small rebound today. ust10091913 But despite the surprise, the yield curve has declined only slightly compared to its increase after May 1st. yc091813 World bond markets are in a sea of green, particularly the UK and Italy. Even beleaguered Greece dropped 21 basis points in 10 year sovereign yield. wbm091913 Precious metals (gold, silver) soared on The Fed’s Taper bluff. goldsilvfed2 To quote The Who, “We won’t get fooled again!”
  • Bernanke Shaken, Not Stirred, On Housing Recovery (Existing Home Sales Climb To 2002 Levels)

    09/19/2013 9:07:11 AM PDT · by whitedog57 · 6 replies
    Confounded Interest ^ | 09/19/2013 | Anthony B. Sanders
    Clearly, The Fed is worried about the moribund housing recovery and lack of mortgage purchase applications. The Fed held firm and fooled many investors by NOT beginning the taper yesterday. Borrowing costs for U.S. homebuyers are poised to extend declines from the highest level in two years after the Federal Reserve unexpectedly refrained from slowing its debt buying and bolstered expectations for how long it will keep short-term interest rates at about zero percent. A Bloomberg index of Fannie Mae securities that guide 30-year loan rates dropped about 0.2 percentage point yesterday, the most since last September, to 3.39 percent,...
  • The Fed has lost all credibility

    09/19/2013 7:07:11 AM PDT · by SeekAndFind · 7 replies
    Fortune ^ | 09/19/2013 | By Stephen Gandel
    Ben Bernanke just pulled the biggest fake out in the history of the market. Now he and the Fed will have to pay for it. The Federal Reserve's exit from its bond-buying experiment in monetary policy was never going to be pretty. It just got a lot messier. If you were watching the market on Wednesday afternoon, you might have gotten the impression that the Fed made another great move. The Dow shot up over 150 points on news that the Fed was not in fact going to pull back on its bond purchases. But if you were watching Ben...
  • Fed: No taper

    09/18/2013 11:13:08 AM PDT · by Hojczyk · 95 replies
    CNBC ^ | September 18, 2013 | Jeff Cox
    <p>An economy still stumbling toward recovery was not enough to sway the Federal Reserve, which defied market expectations Wednesday and said it will not begin pulling back on its monthly asset-purchasing program. Stocks surged on the news but bond yields were flat.</p>
  • Fed Lowers GDP Growth and Investors Celebrate! Dow Rises 147 Points (Government Cronies Win)

    09/18/2013 3:01:55 PM PDT · by whitedog57 · 7 replies
    Confounded Interest ^ | 09/18/2013 | Anthony B. Sanders
    The Federal Reserve Open Market Committee released its update to QE: no change. The market was expecting $5 billion to be cuts from Treasury purchases, but nada. fedannouince Here is the redlined FOMC statement: 169179285-September-FOMC-Redline The Federal Reserve unexpectedly refrained from reducing the $85 billion pace of monthly bond buying, saying it needs to see more evidence of improvement in the economy. “The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” the Federal Open Market Committee said today at the conclusion of a two-day meeting in Washington. While “downside risks”...
  • Can somebody tell me why keeping oil artificially high via QE3 is a good thing for the economy?

    09/18/2013 12:43:11 PM PDT · by DallasBiff · 39 replies
    9/18/13
    More pain at the pump for the middle class, but according to Wall Street this is a good thing.
  • Fed Lowers GDP Growth and Investors Celebrate! Dow Rises 147 Points (Government Cronies Win)

    09/18/2013 11:22:27 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 09/18/2013 | Anthony B. Sanders
    The Federal Reserve Open Market Committee released its update to QE: no change. The market was expecting $5 billion to be cuts from Treasury purchases, but nada. fedannouince The Federal Reserve unexpectedly refrained from reducing the $85 billion pace of monthly bond buying, saying it needs to see more evidence of improvement in the economy. “The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” the Federal Open Market Committee said today at the conclusion of a two-day meeting in Washington. While “downside risks” to the outlook have diminished, “the tightening...
  • To Taper Or Not To Taper: That Is The Fed’s Question (Rising Home Prices, Falling Participation)

    09/17/2013 10:11:57 AM PDT · by whitedog57 · 3 replies
    Confounded Interest ^ | 09/17/2013 | Anthony B. Sanders
    The Federal Reserve Open Market Committee is meeting today and tomorrow with an announcement tomorrow afternoon at 2pm EST. Virtually no one is expecting a change in the Fed Funds Target. fedconsesn What everyone is watching is a change in the Fed rate of purchase of Treasuries and Agency Mortgage-backed Securities. 20130917_FOMC If The Fed does nothing, I will be surprised. The most likely “taper” is $5-10 million per month, mostly or all in Treasuries. Agency MBS purchases are likely to remain unchanged. While there is some positive momentum in the economy, real median household income is declining. household-income-monthly-median-growth-since-2000 (1)...
  • Summers Pull Out, Markets Rally On Weaker Than Expected Economic News (UST Yield Down 10 BPs)

    09/16/2013 7:14:30 AM PDT · by whitedog57 · 9 replies
    Confounded Interest ^ | 09/17/2013 | Anthony B. Sanders
    Larry Summers pulled out of his candidacy for Federal Reserve Chairman, leaving Janet Yellen (a dovish UC Berkeley economics professor) as the leading candidate. A Yellen appointment as Fed Chair means MORE printing and Quantitative Easing. Particularly since the economic news points to a moribund economic recovery. New York’s Empire Manufacturing Index printed at 6.29, less than the expectation of 9.10. Industrial production rose 0.4%, also less than the expectation of 0.5%. Capacity utilization rose to 77.8%, but still can’t break the magical 80% barrier. beco091613A The reaction to Summers’ pull out and the likely about of a Berkeley dove...
  • Inside Job: Obama To Nominate Summers As Fed Chair, Despite NO Federal Reserve Experience

    09/13/2013 3:55:35 AM PDT · by whitedog57 · 6 replies
    Confounded Interest ^ | 09/13/2013 | Anthony B. Sanders
    Japan’s Nikkei is reporting that President Obama is going to nominate Administration insider Lawrence Summers as Federal Reserve Chairman. Summers would replace current Chair Ben Bernanke. This nomination is in spite of the total lack of experience of Summmers in the Federal Reserve system. What experience does Summers have? 1. He was on the staff of the Council of Economic Advisers under President Reagan in 1982–1983. 2. Summers served as an economic adviser to the Dukakis Presidential campaign in 1988 which ended in disaster. dukakis 3. He served as Chief Economist for the World Bank until 1993. 4. He served...
  • Fed’s Predicament: Labor Participation And Mortgage Purchase Apps Going In Wrong Direction

    09/09/2013 7:31:52 AM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 09/09/2013 | Anthony B. Sanders
    Is The Fed enthused about declining unemployment rates? Unfortunately, unemployment is falling for the wrong reason. At first glance, you may be tempted to say “Ah-ha! Quantitative easing (money printing) is working!!!!” u3fedbal Alas, you would be wrong. According to the Bloomberg article, While unemployment dropped last month to 7.3 percent, the lowest level since December 2008, the decline occurred because of contraction in the workforce, not because more people got jobs. Labor-force participation — the share of working-age people either holding a job or looking for one — stands at a 35-year low. Yes, I would say that an...
  • Sea Of Red (Yields): Sovereign Rates Rise As Fed Debates Tapering

    09/04/2013 12:09:17 PM PDT · by whitedog57
    Confounded Interest ^ | 09/04/2013 | Anthony B. Sanders
    Come with me, you the sea of … red. Almost every major nation has seen its 10 year sovereign yields rise today … and over the past 6 months. seofred The US 10 year has climbed over 100 basis points in the last 6 months, close to the UK’s rise. Our Latin American neighbors, Mexico, Brazil and Colombia have seen over 132 basis point increases. Americans spending more on cars and housing helped the economy maintain a “modest to moderate” pace of expansion from early July through late August, even as borrowing costs increased, the Federal Reserve said today. The...
  • The Thrill Is Gone: 7 Year Treasury Auction Confirms Lack of Interest in US Government Debt

    08/29/2013 10:54:25 AM PDT · by whitedog57 · 30 replies
    Confounded Interest ^ | 08/29/2013 | Anthony B. Sanders
    The U.S. Treasury Department sold $29.000 billion of seven-year notes at a yield of 2.221 percent, as demand fell relative to the last auction of securities with the same maturity. ust7auc The bid/cover ratio, which gauges demand by comparing the number of bids to the amount of securities sold, fell to 2.43 from 2.54 at the last seven-year note sale, indicating weaker demand. The bid/cover ratio was the lowest since 2.26 at the May 2009, auction. 7ybdrat The same occurred at the last 10 year auction of Treasury debt. Again. back to 2009 levels. bidcover333 Indirect bidder participation (which includes...
  • Healing? Q2 Real GDP Revised Upwards to 2.5%, Home Foreclosures Dropping, FHA Improving

    08/29/2013 8:02:11 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 08/29/2013 | Anthony B. Sanders
    Is the economy finally healing? It has been over 4 years since the alleged end of the recession. Foreclosures are improving, mortgage rates came down a bit and Q2 GDP was revised upwards to 2.5% from 2.2%. today The Freddie Mac Loan Commitment rate for 30 year fixed actually fell a bit. This is not surprising giving the recent trends in the Treasury 10 year yield. Still, the 10 year Treasury yield is up 115 basis points since May 1st. freddke30us10 FHA Serious Delinquencies and Foreclosures are down to 7.57% as of June 2013, a noticeable decline from 9% at...
  • Cashin: Excess bank reserves are a worrying 1930s parallel

    08/26/2013 8:18:41 PM PDT · by upbeat5 · 21 replies
    CNBC.com ^ | August 26, 2013 | Paul Toscano
    Inflation has been notably absent from the economy this summer, despite bullish moves in gold and a continued debate over the tapering of asset purchases by the Federal Reserve. According to Art Cashin, director of floor operations at UBS Financial Services, the central bank's effect on the financial system has worrying parallels to the period leading up to the Great Depression. "The weak data that we've gotten, particularly the housing on Friday, hints that tapering may be held back or may not be a factor, " Cashin told "Squawk on the Street" on Monday. "Many of the proponents of gold...
  • Mr Bean and Mr Ben: Statist Central Bankers Promise To Keep Interest Rates Low, Even If Fed Tapers

    08/25/2013 11:17:18 AM PDT · by whitedog57
    Confounded Interest ^ | 08/25/2013 | Anthony B. Sanders
    Statist central bankers plan to devalue their respective currencies and risk inflation even if The Fed tapers. Since Central Banks compete with each other, low rate pressures should keep US Treasury rates in line. Central bankers from Japan and the U.K. predicted their new campaigns to encourage expansion will work, sustaining support for global growth even as the Federal Reserve considers a reduction in stimulus. As the annual gathering of central bankers and economists in Jackson Hole, Wyoming, drew to a close yesterday, Bank of Japan Governor Haruhiko Kuroda said his souped-up asset-buying “has started to exert effects” on the...
  • Stanford’s Taylor Suggests Ending QE Earlier, Hall Claims Little Evidence That It Worked

    08/24/2013 1:04:38 PM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 08/24/2013 | Anthony B. Sanders
    Stanford University economist John Taylor feels that ‘Sooner the Better’ for Fed to unwind quantitative easing. Here is Taylor’s take on the first day of the Jackson Hole party. According to Taylor, academics outside the Fed revealed considerable skepticism about the effectiveness of the Fed’s quantitative easing and forward guidance programs. Of course Fed officials did not express the same doubts. The first paper was by Bob Hall. It argued that neither quantitative easing nor forward guidance was effective, or as he put it, “Both quantitative easing and forward guidance, as implemented by the Fed, are obviously weak instruments.” He...
  • CoreLogic: Home Prices Up 1.9% In June; Up 11.9% Year-Over-Year (Despite Mortgage Rate Increases)

    08/23/2013 11:09:47 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 08/23/2013 | Anthony B. Sanders
    According to CoreLogic, U.S. home prices rose 1.2% in June and were up 11.9% Year-Over-Year (YoY). lpsjune2013 LPS closely tracks the Case-Shiller 20 index, so it gives a nice preview of the yet-to-be-released CS index for June. hpmulti Notice that the FHFA Purchase Only Index is at a higher level and the FNC 20 RPI index is at a lower level. But all have been rising since early 2012. The increase in house prices are in spite of rising mortgage rates and lethargic purchase applications. mbapurchasefreddierate mtgratehp And a labor market where 75% of jobs created were part-time. LPS house...
  • Ya Got Trouble! Mortgage Rates at highest level since 2011 (Trouble in DC City)

    08/22/2013 2:17:10 PM PDT · by whitedog57 · 7 replies
    Confounded Interest ^ | 08/22/2013 | Anthony B. Sanders
    Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates following bond yields higher, and reaching new highs for the year, with the expectant release of the Fed’s comments around taper timing of its bond purchase program. 30-year fixed-rate mortgage (FRM) averaged 4.58 percent with an average 0.8 point for the week ending August 22, 2013, up from last week when it averaged 4.40 percent. A year ago at this time, the 30-year FRM averaged 3.66 percent. freddie30 Here is the Freddie rate against the 10 year Treasury yield. freddie30t30y Mortgage-backed securities...