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Keyword: bernanke

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  • David Stockman: "The Capital Markets Are Simply A Branch Casino Of The Central Bank" - Must Read

    07/25/2012 10:49:27 AM PDT · by mojito · 10 replies
    ZeroHedge ^ | 7/24/2012 | David Stockman and Alex Daley
    David Stockman:....I don't think we are at the beginning of the recovery. I think we are at the end of a disastrous debt supercycle that has gone on for the last thirty or forty years, really. It started when Nixon defaulted on our obligations under Bretton Woods and closed the gold window. Incrementally, year after year since then, we have been going in a direction of extremely unsound money, of massive borrowing in both the private and the public sector. We now have an economy that is saturated with debt: $54 trillion or $53 trillion – 3.5 times the GDP...
  • Here Come The Fed: Home Sales Drop More Than Expected, Mortgage Purchase Applications Drop Too

    07/25/2012 8:07:56 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 07/25/2012 | Anthony B. Sanders
    For June, home purchases decreased to a 350,000 annual rate, down 8.4 percent from the prior month and the weakest since January, the Commerce Department reported today in Washington. The forecast was for 372,000 units, a big swing and a miss. The decline was led by a record 60 percent plunge in the Northeast. And 350,000 units is down from the upwardly revised number of 382,000 for May. The Mortgage Bankers Association released their weekly mortgage application indices this morning. As I mentioned to Lori Rothman on Fox Business last week, the MBA Purchase Index is an important index to...
  • Democrats warn Rep. Paul's 'audit the Fed' bill will politicize monetary policy

    07/24/2012 4:29:25 PM PDT · by markomalley · 36 replies
    The Hill ^ | 07/24/12 | Pete Kasperowicz
    Several senior House Democrats warned that passing a bill from Rep. Ron Paul (R-Texas) requiring a full audit of the Federal Reserve Board's monetary policy decisions will allow Congress greater leverage to put political pressure on these decisions, which they said would cause serious problems in the U.S. and global financial markets. The Federal Reserve Transparency Act, H.R. 459, was expected to come up for a vote Wednesday, and seemed poised for passage given its 270 co-sponsors, including nearly four dozen Democrats. Nonetheless, many Democrats used the Tuesday floor debate to warn about the chances that Congress might use the...
  • Market Reactions to Bernanke's Report to U.S. Senate (Bernanke Does E.F. Hutton Impression)

    07/17/2012 8:56:22 AM PDT · by whitedog57
    Confounded Interest ^ | 07/17/2012 | Anthony B. Sanders
    Like the old E.F. Hutton ads, “When Ben Bernanke speaks, people listen.” The Euro: Gold: US Treasury 10 year yield: The reaction to Bernanke’s speech is less than enthusiastic. Apparently, the market wanted a more firm statement on more quantitative easing (and Senator Schumer from New York said so in the Senate hearing). In Bernanke’s defense (which no Senator acknowledged), M2 Money Velocity is falling below levels not seen in modern times. If you watch Bernanke’s Senate presentation, Senators Toomey (PA) and Corker (TN) win the award for best observations and questions. No one expressed the sentiment that The Fed...
  • More QE Will Be Needed As More People Go On The Dole Than Become Employed

    07/13/2012 6:09:27 PM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 07/13/2012 | Anthony B. Sanders
    I’m glad that Mr. Lockhart sees a step-up in output and employment growth by the end of the year. But how will driving interest rates lower help when they haven’t helped yet? The Fed’s balance sheet hovers around $3 trillion and the Fed Funds Target Rate is at a pitiful 0.25%. Yet, no ignition so far. M2 Money Velocity has declined below any point since the end of World War II. And mortgage lending (with the exception of Wells Fargo) has not really rebounded since it peaked in 2008. Employment still stinks as more and more people go on the...

    07/08/2012 9:19:04 PM PDT · by Errant · 7 replies
    We are now three and one half years into Barack Obama’s presidency. I thought a few pertinent charts would help us assess the success of his economic policies. Upon his election he demanded an $800 billion stimulus package in order to keep the unemployment rate from surpassing 8%. The $800 billion was to be spent over two years we were told and then government spending would be scaled back to pre-stimulus levels. There were 145 million Americans employed when Obama was elected. There are 9 million more working age Americans today than there were in 2008. There are now 142.4...
  • Bernanke Twists Again Like He Did Last Summer ($267B) – But Will It Help?

    06/20/2012 12:44:03 PM PDT · by whitedog57 · 9 replies
    Confounded Interest ^ | 06/20/2012 | Anthony B. Sanders
    Today, Fed Chairman Ben Bernanke peeked around the corner and sang “Let’s Twist Again Like We Did Last Summer. Oh, let’s Twist again, Twisting time is here.” Not really of course. But The Fed did announced that they are extending Operation Twist until the end of the year. And Twist will be increased to $267 billion. No MBS stimulus either, so Agency MBS slumped today. Federal Reserve Bank of Richmond President Jeffrey Lacker voted against the committee’s action on Wednesday because he “opposed continuation of the maturity extension program,” according to the statement. Lacker has dissented at all four FOMC...
  • Top Customer: Under Obama, Fed’s Holdings of U.S. Debt Have Jumped 452%

    06/10/2012 8:41:41 PM PDT · by Beave Meister · 33 replies ^ | 6/7/2012 | Terence P. Jeffrey
    ( - Since President Barack Obama was inaugurated in January 2009, the Federal Reserve’s holdings of U.S. government debt have quintupled, according to the Fed’s official monthly balance sheet. On Jan. 28, 2009, a week after Obama’s nomination, the Fed owned $302 billion in U.S. Treasury securities. On April 25, 2012, the latest date reported, the Fed owned five and a half time that much in U.S. Treasury securities--$1.668 trillion. That is an increase from January 2009 of $1.366 trillion—or 452 percent. Under Obama, the Federal Reserve has become the single largest owner of U.S. government debt. When Obama entered...
  • The Fed's Dilemma - To QE or Not to QE - That is the Question

    06/09/2012 9:33:53 AM PDT · by whitedog57 · 10 replies
    Confounded Interest ^ | 06/09/2012 | Anthony B. Sanders
    The Federal Reserve Board faces a myriad of interesting questions, but the one of most of the world’s mind is … to QE or not to QE. That IS the question. Chairman Bernanke’s statement to Congress this past week did not say much except that The Fed is standing by in case things get worse. But I will take a wager that QE3 is coming at the next meeting of the Fed’s Open Market Committee (FOMC). But I am not willing to make a big wager, because there are some sound arguments NOT to do any additional quantitative easing. So,...
  • Fed Chairman Ben Bernanke warns of 'fiscal cliff' risks

    06/07/2012 7:18:21 PM PDT · by bd476 · 12 replies
    Excerpt from Los Angeles Times ^ | June 7, 2012 | By Don Lee
    WASHINGTON — Fears about a looming fiscal crisis at the end of the year are starting to pinch job growth and threatening to undercut the nation's fragile recovery, a growing number of economists and employers say. Federal Reserve Chairman Ben S. Bernanke, in testimony Thursday before Congress, repeatedly warned about the so-called fiscal cliff — a reference to the expiration of tax cuts Dec. 31 and the imposition of automatic spending reductions Jan. 1. By some accounts, the U.S. economy could see an unprecedented fiscal hit of as much as $720 billion if the slated changes take effect. They would...
  • Wall St boosts QE3 expectations after May jobs data

    06/02/2012 6:32:33 AM PDT · by TigerLikesRooster · 22 replies
    Reuters ^ | 06/02/12 | Chris Reese
    Wall St boosts QE3 expectations after May jobs data By Chris Reese NEW YORK | Sat Jun 2, 2012 7:49am IST (Reuters) - Wall Street economists see an increased chance the Federal Reserve will launch another round of monetary stimulus to support the U.S. economy, following data showing jobs growth slowed markedly for a third straight month in May. The median of forecasts from 15 primary dealers - the large financial institutions that do business directly with the Fed - gave a 50-percent chance the central bank would eventually launch another round of quantitative easing, known as QE3. A similar...
  • The Time Has Come Mr. Bernanke For More Stimulus!

    06/02/2012 5:52:11 PM PDT · by blam · 19 replies
    TMO ^ | 6-2-2012 | Sy Harding
    The Time Has Come Mr. Bernanke For More Stimulus! Stock-Markets / Economic Stimulus Jun 02, 2012 - 02:26 PM By: Sy Harding For several months Fed Chairman Ben Bernanke has been assuring Congress and by extension, investors, that the Fed stands ready with ammunition to re-stimulate the economy “if it becomes necessary.” It has become necessary. In each of the last two summers the Fed waited until the economic recovery had stumbled near the point of sliding into recession, and the stock market correction was close to crossing the 20% line into a bear market, before coming to the rescue...
  • The New "Spanish Prisoner": Spain Raises Budget Deficit to 8.9% of GDP

    05/19/2012 5:08:44 PM PDT · by whitedog57
    Confounded Interest ^ | 05/19/2012 | Anthony B. Sanders
    The Spanish Prisoner is a confidence trick originating in the late 19th century. The con artist tells “the mark” that a wealthy person is being held captive and that money needs to be raised to release the wealthy person from the jailers. Allegedly, when the prisoner is released, the mark will receive a handsome reward. Needless to say, something always goes wrong with the negotiations and the mark is asked for more and more money until there is nothing left. Spain, coincidentally, just claimed to find a pile of unpaid bills and needed to raise their budget deficit to 8.9%...
  • Freddie Mac: Mortgage Rates Drop (Again) – Thank Greece, Portugal and Spain!

    According to Freddie Mac, mortgage rates in the U.S. fell to a record for a third straight week. The average rate for a 30-year fixed loan dropped to 3.79 percent in the week ended today from 3.83 percent. Fannie Mae 30 year current coupons (the rate on Fannie Mae MBS) fell as well, but not to the lowest point in recent months.\ As Europe continues to experience a financial crisis, investors continue to invest in our Treasury market (driving down yields). 30 year mortgage rates follow the 10 year Treasury yield. Greece, Portugal and Spain continue to experience problems with...
  • The Mortgage Minute

    05/14/2012 7:58:04 AM PDT · by neverbluffer · 11 replies
    VANITY | 05/14/2012 | NEVERBLUFFER
    Bond yields are of 7/32 this morning in early trading. Mortgage rates continue to plummet to almost all time low points. The gift from the European fiasco is the gift that keeps on giving if you are in the market for a mortgage for purchasing or refinancing.
  • Why Aren’t Banks Lending to Small Business? Ask Bernanke.

    05/03/2012 6:23:59 AM PDT · by SeekAndFind · 8 replies
    The American ^ | 05/03/2012 | Scott Shane
    Banks profit by making loans, not refusing them. So why are banks making fewer loans to small business these days? On March 29, at a lecture at George Washington University, Federal Reserve Chairman Ben Bernanke innocuously remarked that lately “small businesses have … found it difficult to get credit.” Too bad that none of the students at the lecture thought to ask him why. A case can be made that the Fed is partially responsible. Bankers, small business owners, and policymakers all agree that small business lending has declined substantially since before the financial crisis and Great Recession. Business loans...
  • Bernanke Calls Krugman "Reckless"

    04/27/2012 9:21:26 AM PDT · by Kaslin · 11 replies ^ | April 27, 2012 | Mike Shedlock
    Paul Krugman is now so far into outer space with ridiculous economic proposals that even Helicopter Ben Bernanke recognizes Krugman's proposals as "reckless". Bloomberg reports Bernanke Takes On Krugman’s Criticism Ignoring Own Advice
  • Bernanke: Fed Could Act Again to Stimulate Economy

    04/26/2012 3:25:28 AM PDT · by Son House · 19 replies
    ABC News ^ | April 25, 2012 | MARTIN CRUTSINGER
    After its bond-buying programs expired, the Fed in September began a $400 billion program dubbed Operation Twist. Under that program, the Fed is not expanding its portfolio but instead selling shorter-term securities it owns and buying longer-term bonds to keep their rates down. The program is scheduled to end in June. On Friday, the government will issue its first estimate of economic growth for the January-March quarter. Many economists are predicting an annual growth rate of 2.5 percent — better than they had expected when the year began. Ben Bernanke AP Federal Reserve Chairman Ben Bernanke... View Full Caption But...
  • Yellen Announces No Fed Tightening After Twist - Europe Rebels Against Austerity

    04/23/2012 8:26:03 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 04/23/2012 | Anthony B. Sanders
    According to Bloomberg, The Netherlands is experiencing backlash against austerity, France is seeing Sarkozy possibly losing to a Socialist and Merkel’s austerity policies are coming under increased attack. This, of course, is no surprise. No one wants to pay for the massive entitlement and government spending programs. So, the answer is … print more money. Fed Vice Chair Janet Yellen said today that there will be no monetary tightening after Operation Twist expires. On it’s own, expiring Twist will in the 10 year rising about 25 basis points. Notice that the U.S. Treasury 10 year yield dropped this morning while...
  • Did Bernanke Prevent Another Great Depression?

    04/22/2012 11:06:22 AM PDT · by blam · 36 replies
    TMO ^ | 4-22-2012 | Frank Shostak
    Did Bernanke Prevent Another Great Depression? Politics / US Economy April 22, 2012 - 07:02 AM By: Frank Shostak In a lecture given at George Washington University on March 27, 2012, the chairman of the Fed said that the US central bank's aggressive response to the 2007–2009 financial crisis and recession helped prevent a worldwide catastrophe. Various economic indicators were showing ominous signs at the time. After closing at 3.1 percent in September 2007, the yearly rate of growth of industrial production fell to minus 14.8 percent by June 2009. The yearly rate of growth of housing starts fell from...