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Keyword: qe

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  • Rattled investors brace for big week as Federal Reserve considers rate increase

    08/31/2015 3:55:28 AM PDT · by expat_panama · 10 replies
    The Guardian ^ | Sunday 30 August 2015 | Rupert Neate
    After a tumultuous week on the world’s stock markets, investors will be focused on Wall Street Monday ahead of another set of economic reports likely to steer the Federal Reserve’s decision on whether to raise interest rates for the first time in almost a decade. The markets open Monday as investors digest news that the Fed is still actively considering a September rate hike. In a speech on Saturday, Stanley Fischer, the vice-chair of the Fed’s Board of Governors, suggested inflationary pressures could soon lead to an increase. His comments are likely to add to the volatility of already skittish...
  • The Central Bankers’ Malodorous War On Savers

    08/28/2015 8:23:19 AM PDT · by PGR88 · 10 replies
    David Stockman's Contra Corner ^ | August 28, 2015 | David Stockman
    To wit, artificial suppression of free market interest rates by the central bank is designed to cause households to borrow more money than they otherwise would in order to spend more than they earn, pure and simple. Its nothing more than a modernized version of the original, crude Keynesian pump-priming theory—–except it dispenses with the inconvenience of getting politicians to approve spending increases and tax cuts in favor of the writ of a small posse of unelected monetary mandarins who run the FOMC and peg money market interest rates at will. But the whole enterprise is a crock. The consumer...
  • Former Fed Official’s Sage Comments: Investors ‘hooked on the heroin of quantitative easing’

    08/27/2015 6:37:53 PM PDT · by SkyPilot · 13 replies
    Economic Collapse News ^ | 26 Aug 15 | Andrew Moran
    Former Dallas Federal Reserve President Richard Fisher made sound remarks when discussing the current market meltdown with CNBC on Tuesday. Although he is incorrect in his assertion that the United States central bank will do what’s right for the national economy and avoid monitoring daily activity reports, he was right that investors are addicted to easy money from quantitative easing, otherwise known as QE. “I don’t think there is a single member of the FOMC that’s going to react to one day’s market activity,” Fisher told the business news outlet. “Nobody on that committee would like to see that continue,...
  • Why The Fed Ended QE And Why They Can’t Restart It

    03/24/2015 1:54:38 PM PDT · by Signalman · 16 replies
    Dick Morris ^ | 3/24/2015 | Dick Morris
    Many stock market investors have, in the back of their minds, the comforting illusion that the Quantitative Easing with which the Fed showered Wall Street during the past three years could restart if the market falters. (Under Quantitative Easing, the Fed gave banks $85 billion each month to help stimulate lending and spending and to drive up stock prices). Some also see that the impending rise in interest rates can be reversed if the economy begins to drop. Both assumptions are really illusions. The factors that impelled an end to Quantitative Easing and to higher interest rates rule out a...
  • Euro slips to new 12-year low against US dollar ($1.05)

    03/11/2015 9:09:49 PM PDT · by tcrlaf · 15 replies
    Straits Times ^ | 3-12-2015 | Reuters
    The euro slipped to a fresh 12-year low against the US dollar on Thursday as the common currency continued to buckle under pressure felt since the European Central Bank launched its massive quantitative easing scheme at the start of the week.
  • European Central Bank Launches Trillion-Euro Stimulus

    03/09/2015 2:40:01 PM PDT · by E. Pluribus Unum · 11 replies
    ABC News ^ | 03/09/2015 | DAVID McHUGH
    The European Central Bank has hit the launch button on its 1.1 trillion euro ($1.2 trillion) stimulus program by starting to buy government bonds. The chief monetary authority for the 19 countries that use the euro confirmed Monday it had begun the purchases, which aim to make credit cheaper, boost growth and raise inflation. ECB President Mario Draghi had announced the start date last week, sending stocks higher and the euro lower.
  • The Song Remains the Same

    02/28/2015 9:05:03 AM PST · by Citizen Zed · 3 replies
    Eleven trillion dollars: that’s how much of so-called Quantitative Easing the world’s central banks have done since the 2008 crisis. To put that in perspective, with eleven trillion dollars you could pay off pretty much all U.S. household debt – all mortgages, all car and student loans, credit cards – you name it. So what did the global economy get for $11,000,000,000,000 in QE? Following a post-recession pop, we got collapsing world trade growth, and that’s even with prices falling over the past three to four years. Why is this happening? It’s not because this time around things are different....
  • Recovery? The World Eases...

    02/25/2015 2:00:46 PM PST · by alexmark1917 · 3 replies
    Despite endless proclamations that the world has 'escaped' the financial crisis, the data (and actions) simply do not back that up. The constant propagandizing of either a) US is economically strong and will drive the world's growth engine (factually incorrect), or b) the rest of the world is about to revert to higher growth seems entirely anathema to the fact that in 2015, we have seen a wave of monetary easing - most recently today by Israel. That makes it20 central banks that have cut rates (or eased policy) in the last few weeks - covering over 50% of the...
  • Federal Reserve Insider Alan Greenspan Warns:There Will Be a “Significant Market EventSomething Big

    With the Federal Reserve printing trillions upon trillions of dollars to keep the economic system afloat, many investors and financial pundits have surmised that the fundamental economic problems facing the United States during the crash of 2008 have been resolved. Stocks are, after all, at historic highs. But the insiders know different. And if there’s any single person out there who understands U.S. monetary policy and its long-term effects on domestic and global affairs it’s former Federal Reserve chairman Alan Greenspan. As the head of the world’s most powerful central bank for nearly two decades he’s privy to the insider...
  • Sweden cuts rates below zero as global currency wars spread

    02/12/2015 3:34:09 PM PST · by NRx · 30 replies
    The Telegraph ^ | 12 Feb 2015 | Ambrose Evans-Pritchard
    Sweden has cut interest rates below zero and launched quantitative easing to fight deflation, becoming the latest Scandinavian state to join Europe’s escalating currency wars. The Riksbank caught markets by surprise, reducing the benchmark lending rate to minus 0.10pc and unveiled its first asset purchases, vowing to take further action at any time to stop the country falling into a deflationary trap. The bank presented the move as precautionary step due to rising risks of a “poorer outcome abroad” and the crisis in Greece. Janet Henry from HSBC said the measures are clearly a “beggar-thy neighbour” manoeuvre to weaken the...
  • Fed QE was $4trn over six years, BOJ and ECB spending a combined $1.5trn year.

    01/23/2015 5:16:22 AM PST · by alexmark1917 · 1 replies
    Fed’s $4 Trillion Holdings to Boost Growth Beyond End of QEQuantitative easing may turn out to be a gift that keeps on giving for the U.S. economy. As the Federal Reserve prepares to end its third round of bond buying next week, the central bank plans to hang on to the record$4.48 trillion balance sheet it has accumulated since announcing the first round of purchases in November 2008. That will continue to keep a lid on borrowing costs, helping the Fed lift inflation closer to its target and providing support to a five-year expansion facing headwinds abroad, from war in...
  • Open-ended European QE set to 'start with a bang'

    01/22/2015 7:12:26 AM PST · by Red Badger · 15 replies
    CNBC ^ | 01/22/2015 | Katy Barnato
    European Central Bank (ECB) President Mario Draghi announced the launch of an open-ended, expanded monthly 60 billion euro ($70 billion) private and public bond-buying program on Thursday. The long-anticipated introduction of euro zone government bond purchases will bring the ECB's buying program into line with the U.S. Federal Reserve's quantitative easing (QE). The program will be open-ended, lasting until at least 2016, Draghi told reporters at his regular media conference on Thursday, and will start in March this year. The hope is that it will boost the region's painfully low inflation rate, which came in at an annual minus 0.2...
  • Central bank prophet fears QE warfare pushing world financial system out of control

    01/21/2015 4:46:57 PM PST · by 9thLife · 7 replies
    The Telegraph ^ | 6:48PM GMT 20 Jan 2015 | By Ambrose Evans-Pritchard, in Davos
    The economic prophet who foresaw the Lehman crisis with uncanny accuracy is even more worried about the world's financial system going into 2015. Beggar-thy-neighbour devaluations are spreading to every region. All the major central banks are stoking asset bubbles deliberately to put off the day of reckoning. This time emerging markets have been drawn into the quagmire as well... "We are in a world that is dangerously unanchored," said William White, the Swiss-based chairman of the OECD's Review Committee. "We're seeing true currency wars and everybody is doing it, and I have no idea where this is going to end."...
  • US Debt Soars By $100 Billion On Last Day Of 2014, Hits Record $18.14 Trillion

    01/02/2015 2:41:00 PM PST · by blam · 42 replies
    Zero Hedge ^ | 1-2-1015 | Tyler Durden
    Tyler Durden 01/02/2015 It seems like it was only yesterday when we reported that, in yet another slight of hand for the US Treasury and Social Security Administration, US debt rose by $32 billion on the last day of November sending total US debt above $18 trillion for the first time ever. As we further noted, it also meant "that total US debt has increased by 70% under Obama, from $10.625 trillion on January 21, 2009 to $18.005 trillion most recently." Fast forward to today when we are happy to report that according to the US Treasury, America's debt-funded spending...
  • They are preparing for you

    12/27/2014 9:45:42 AM PST · by kindred · 41 replies ^ | December 19, 2014 | Dwight Kehoe
    A wheelbarrow of money to buy a loaf of bread. This is what Obama, with his fiscal cliff plan, threatens us with. For many years now we have heard chilling tales about that elusive, powerful and manipulative entity conspiracy theorists have called “The New World Order”. Not only have the members of this group managed for the most part to remain anonymous, but their agenda has remained mysterious and obscure. So much so that many good people have been perfectly fine with ignoring its existence or viability. Whether or not this New World Order is in lockstep with World Communism...
  • Could an Energy Bust Trigger QE4?

    12/23/2014 6:11:27 AM PST · by SeekAndFind · 3 replies
    Euro Pacific Capital ^ | 12/23/2014 | Peter Schiff
    In a normal economic times falling energy costs would be considered unadulterated good news. The facts are simple. No one buys a barrel of oil to display above the mantle. No one derives happiness from a lump of coal. Energy is simply a means to do or get the things that we want. We use it to stay warm, to move from Point A to Point B, to transport our goods, to cook our food, and to power our homes, factories, theaters, offices, and stadiums. If we could do all these things without energy, we would happily never drill a...
  • Falling inflation a worry for Europe but also the world

    11/23/2014 6:55:14 PM PST · by Tolerance Sucks Rocks · 60 replies
    Reuters ^ | November 23, 2014 | Ross Finley
    (Reuters) - European Central Bank President Mario Draghi has moved closer to launching sovereign debt purchases and data this week will show just how dangerously low inflation has fallen in the $13 trillion euro zone economy. A sickly Europe has held back global economic growth for years, and now it is contributing significantly to powerful forces already dragging down inflation across the globe. A spectacular drop in crude oil prices over the past month will be the center of discussion when ministers from the world's top oil exporters meets in Vienna on Friday.
  • What Are The Odds In 2015: Inflation Or Deflation?

    11/13/2014 12:04:54 PM PST · by blam · 11 replies
    TMO ^ | 11-13-2014 | TCE
    The Cultural Economist Nov 13, 2014 TCE ( The Cultural Economist) writes: Like other Central Banks, the U. S. Federal Reserve has “printed” copious quantities of money. Despite better GDP numbers and positive media commentary, much of the American economy continues to be lethargic. The Eurozone appears increasingly vulnerable to recession. Financial and geopolitical risks could derail economic growth. What are the long term trends that will shape the outcome? The Case for Inflation Oil As I have documented several times, the rate of inflation is sensitive to the price we pay for a barrel of oil. Political turmoil in...
  • The Rally Surges Back, But There's Trouble Ahead

    11/02/2014 12:00:24 PM PST · by Wuli · 9 replies
    Money Morning ^ | November 2, 2014 | Michael E. Lewitt
    The week was dominated by news by central banks as the Federal Reserve ended QE and the Bank of Japan pushed its QE program to new heights. The result was another rally in stocks around the globe that made the mini-correction earlier this month seem like a dream (or a nightmare). The question is what happens next, and all indications are that markets will continue to ride the wave of central bank liquidity as far as it takes them. Markets were also boosted by a strong initial third quarter U.S. GDP report showing the economy grew at 3.5% and strong...
  • If The Dollar Breaks This Trend, It Could 'Create Havoc On The Unprecedented $5-Trillion Carry Trade

    11/01/2014 9:28:33 AM PDT · by blam · 28 replies
    BI ^ | 11-1-2014 | Julia La Roche
    Julia La Roche October 31, 2014The Federal Reserve ended quantitative easing this week. And soon it'll start tightening monetary policy with interest rate hikes. This is coming as central banks in the rest of the world maintain loose monetary policy or even go as far as to loosen monetary policy further. All of this is bullish for the US dollar relative to other major currencies. Business Insider recently asked the smartest people in finance for what they considered to be the "most important charts in the world." Without hesitation, former global macro fund manager Raoul Pal sent us a long-term...
  • Japan Just Boosted QE And The Nikkei Exploded To A 7-Year High

    10/31/2014 4:32:42 AM PDT · by blam · 11 replies
    BI ^ | 10-31-2014 | Mike Bird
    Mike Bird October 31, 2014The Nikkei closed up 4.83%, hitting a seven-year high after the Bank of Japan (BoJ) unexpectedly announced it was expanding its monetary easing policy Friday morning. In a tight vote, the BoJ backed an 80 trillion yen ($720 billion) target for expanding the monetary base (a measure of the amount of money held by the central bank and in the economy). That's up from a previous target of 60 trillion to 70 trillion yen. Analysts were basically not expecting anything Friday: this one was a genuine surprise. Just as the Fed this week announced the final...
  • Alan Greenspan: QE Failed To Help The Economy, The Unwind Will Be Painful, "Buy Gold"

    10/29/2014 11:47:09 AM PDT · by Rusty0604 · 17 replies
    Zerohedge ^ | 10/29/2014 | Tyler Durden
    It appears it is time for some Hillary-Clinton-esque backtracking and Liesman-esque translation of just what the former Federal Reserve Chief really meant. As The Wall Street Journal reports, the Fed chief from 1987 to 2006 says the Fed's bond-buying program fell short of its goals, and had a lot more to add. Mr. Greenspan’s comments to the Council on Foreign Relations came as Fed officials were meeting in Washington, D.C., and expected to announce within hours an end to the bond purchases. He said the bond-buying program was ultimately a mixed bag. He said that the purchases of Treasury and...
  • Fed ends 'QE' bond-buying economic stimulus program

    10/29/2014 11:04:36 AM PDT · by Oldeconomybuyer · 15 replies
    Market Watch ^ | October 29, 2014
    The Federal Reserve on Wednesday voted to end the last leg of its bond-buying stimulus program, cutting purchases of Treasury's and mortgage-back securities to zero from $15 billion starting on Nov. 1. The central bank also sounded more upbeat about the labor market and said it doesn't expect falling energy prices to hold inflation down in the long run. For the first time, the Fed explicitly said it could raise interest rates sooner than markets expect if the economy grows faster than the bank projects.
  • How well did the Fed's stimulus work? ($4 TRILLION quantitative easing drawing to a close)

    10/28/2014 2:56:42 PM PDT · by Libloather · 30 replies
    MSN ^ | 10/28/14 | MATTHEW CRAFT
    NEW YORK — Soaring inflation. A collapsing dollar. Bubbles in financial markets that would soon pop. One presidential candidate even suggested that the Federal Reserve chairman should be roughed up. Over the past five years, as the Fed has pumped ever-more money into the financial system, critics have warned that it would lead to all kinds of disasters. Yet the central bank kept extending its bond-buying program, known by the wonky name of quantitative easing, or QE. It was an unprecedented effort aimed at lowering borrowing costs, encouraging spending and reviving a dormant economy before it could slip back into...
  • How Will The Stock Market React To The End Of Quantitative Easing?

    10/26/2014 7:02:25 PM PDT · by blam · 51 replies
    TEC ^ | 10-26-2014 | Michael Snyder
    By Michael Snyder October 26th, 2014 It is widely expected that the Federal Reserve is going to announce the end of quantitative easing this week. Will this represent a major turning point for the stock market? As you will see below, since 2008 stocks have risen dramatically throughout every stage of quantitative easing. But when the various phases of quantitative easing have ended, stocks have always responded by declining substantially. The only thing that caused stocks to eventually start rising again was a new round of quantitative easing. So what will happen this time? That is a very good question....
  • 'Mortgage crisis' is coming this winter: Bove

    09/11/2014 2:02:42 PM PDT · by Lorianne · 27 replies
    CNBC ^ | 02 September 2014 | Jeff Cox
    A toxic brew is bubbling in the housing market that will lead to a mortgage crisis by winter, banking analyst Dick Bove said. Now that the Federal Reserve is nearly done with its monthly bond-buying program, which includes mortgage-backed securities, and Washington continues on its quest to unwind Fannie Mae and Freddie Mac, conditions could get dicey in the home loan market. Bove envisions a scenario in which long-term financing, like the ubiquitous 30-year mortgage, that has come with fixed interest rates is endangered as mortgage buyers dry up. As part of its quantitative easing program, the Fed had been...
  • World stock markets up near record high; low yields help

    06/09/2014 4:02:25 PM PDT · by Erik Latranyi · 8 replies
    Yahoo News ^ | 9-June-2014 | Herbert Lash
    NEW YORK (Reuters) - Global equity markets edged higher on Monday, boosting a gauge of world stock performance to near an all-time high, as low interest rates bolstered sentiment even as U.S. Treasury yields rose. Wall Street's Dow industrials and benchmark S&P 500 closed at all-time peaks, with the latter rising to its seventh record close in eight trading sessions. Asian stocks earlier touched their highest levels in nearly three years. Europe also advanced as Spain, Italy and Portugal spurred regional indices on bets those markets would benefit most from last week's European Central Bank stimulus measures.
  • The Fed Could Have Bought California & Texas… or All of China & Japan's Treasuries With QE Money

    05/06/2014 10:53:36 AM PDT · by blam · 8 replies
    Zero Hedge ^ | 5-6-2014 | Phoenix Capital Research
    The Fed Could Have Bought California & Texas… or All of China & Japan's Treasuries With QE Money Phoenix Capital Research 05/06/2014 12:31 The Federal Reserve has spent over $3.2 trillion in the post-Crisis era. The bulk of this money printing has gone towards buying garbage mortgage securities or US Treasuries from Wall Street. Because we’ve reached a point in time at which $1 trillion no longer sounds like a lot of money, we thought we’d go through the exercise of assessing just what the Fed could have done with this money besides give it to Wall Street. With $3.2...
  • KOO: The US Is In A 'QE Trap' And Both The Markets And The Media Are Missing It

    03/26/2014 7:44:24 AM PDT · by blam · 12 replies
    KOO: The US Is In A 'QE Trap' And Both The Markets And The Media Are Missing It Joe WeisenthalMar. 26, 2014, 4:48 AM Nomura economist Richard Koo is out with his first comments since Janet Yellen's first FOMC meeting last week. Remember, Yellen briefly spooked markets with what some perceived to be a hawkish tone, mostly owing to the specificity with which she talked about the timing of the first rate hike. According to Koo, the US is in a "QE Trap" and both the market and the media are missing it. This trap, he says, explains the hawkish...
  • "QE Was A Massive Gift Intended To Boost Wealth", Fed President Admits

    03/23/2014 10:57:16 AM PDT · by SkyPilot · 35 replies
    Zero Hedge ^ | 22 March 14 | Tyler Durden
    <p>With Bernanke gone, the remaining Fed members knowing full well they will be crucified, metaphorically of course (if not literally) when it all inevitably comes crashing down, are finally at liberty with their words... and the truth is bleeding out courtesy of the president of the Dallas Fed, via Bloomberg.</p>
  • The Fed Is Not Printing Money, It's Doing Something Much Worse

    03/10/2014 7:03:39 AM PDT · by SeekAndFind · 18 replies
    Forbes ^ | 03/09/2014 | John Tamny
    The Federal Reserve’s seemingly endless program of quantitative easing (QE) begun under Ben Bernanke, and continuing at a slightly slower pace under Janet Yellen, has some of the punditry and much of the electorate up in arms. With good reason. Implicit in quantitative easing is the horribly obtuse notion that central banks can produce real economic growth through their monetary machinations. If only life were so simple. Back in the world of the reasonable, the sole purpose of money is as a stable measure of value that facilitates the exchange of goods and investment. Quantitative easing, by its very name,...
  • Fed's Plosser 'very worried' about QE consequences

    03/06/2014 8:18:26 AM PST · by Red in Blue PA · 7 replies
    Philadelphia Federal Reserve President Charles Plosser is "very worried" about the potential for unintended consequences of the Fed's massive quantitative easing program. Plosser told CNBC that the U.S. was still suffering from "lasting effects" of the recession and "may never return" to its previous growth rates—and warned that policy should not bet on growth returning to previous rates, saying it could be "many, many years." (Read More: Fed's Plosser: We need to begin to get rid of QE) With gross domestic product expanding at a 2.4 percent annual rate, according to the Commerce Department last Friday, Plosser said that the...
  • Cautiously Looking Beyond the Fed

    02/22/2014 8:20:43 AM PST · by Kaslin · 2 replies ^ | February 22, 2014 | Charles Payne
    There wasn't a lot of volume, but the market shrugged off an early indecision and rallied higher. The bias is to the upside, and despite a shaky start to the year, the long-term trend remains intact, which is very encouraging. Also encouraging is that the market is moving higher, even as the dollar edged higher as conventional wisdom shifts towards the belief; that it's going to take a universally acknowledged disaster or hiccup in the economy, for the Fed to divert from its unofficial goal of monthly tapering. The market moving higher on less Fed accommodation has been the...
  • Margin Debt Hits All-Time High

    02/02/2014 12:46:29 PM PST · by Red in Blue PA · 16 replies
    In the month of December margin debt on the NYSE surged by over $20 Billion dollars hitting a new all-time high of $444.931 billion. The rise in leverage also sent investors net worth to a negative $149.358 billion which is also a record. This is shown in the chart below.
  • Why stronger GDP growth isn't creating more jobs

    01/31/2014 7:14:17 AM PST · by SeekAndFind · 35 replies
    FORTUNE ^ | 01/30/2014 | By Stephen Gandel, senior editor
    The government said GDP rose 3.2% in the last three months of 2013 -- one of the fastest rates since the end of the recession, though slower than the third quarter's 4.1%. Still, that sounds good, until you remember this: Employers only added 74,000 jobs in December -- one of the worst months in nearly three years. Stronger economic growth is supposed to equal more jobs. So what gives? It does appear that the normal relationship between jobs and GDP has broken down. In the first half of 2013, for instance, GDP growth was at 1.9% and employers added an...
  • US stocks sink; Dow dives 225 points on emerging-market concerns

    01/31/2014 6:48:57 AM PST · by John W · 58 replies ^ | January 31, 2014 | Kate Gibson
    U.S. stocks tanked on Friday, with investor sentiment slammed by increasing worries about trouble in emerging markets. "This is more of a geoeconomic kind of thing. The Friday dates plays into this, the end of the month plays into this, and it does appear emerging markets, one by one, will need to take additional central bank action over the next few days," said Jim Russell, senior equity strategist for U.S. Bank Wealth Management.
  • Citing Growth, Fed Again Cuts Monthly Bond Purchases

    01/29/2014 11:36:50 AM PST · by John W · 8 replies
    The New York Times ^ | January 29, 2014 | BINYAMIN APPELBAUM
    WASHINGTON — The Federal Reserve announced Wednesday another $10 billion cut in its monthly bond purchases in a statement that attributed the decision to “growing underlying strength in the broader economy.” The statement, published after a two-day meeting of the Fed’s policy-making committee, reflected the optimism of Fed officials that the economy is finally poised for faster growth after years of false starts and setbacks. It was the committee’s first unanimous decision since 2011. The Fed said it would expand its holdings of Treasury and mortgage-backed securities by $65 billion in February, down from $75 billion in January and $85...
  • The Hows and Whys of Gold Price Manipulation

    01/18/2014 5:34:02 PM PST · by logi_cal869 · 56 replies
    Institute for Political Economy ^ | 1/17/2014 | Paul Craig Roberts and Dave Kranzler
    The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them “too big to fail.” Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative Easing the prices of financial instruments on the banks’ balance sheets and in order to finance at low interest rates trillion dollar federal budget deficits associated with the long recession caused...
  • The Federal Reserve Is Making A Big Mistake

    01/08/2014 12:07:11 PM PST · by Patriotic1 · 16 replies
    Forbes ^ | 9/20/2013 | Richard Finger
    The Federal Reserve did something completely unpredicted on Wednesday; nothing. So called “tapering” of QE was indefinitely placed in deep freeze………until such time as the U.S. economy is more robust. Most asset classes shot up energetically. Both the S&P and the Dow closed at all-time highs. SNIP The question to be asked is did these asset classes all react rationally. Continuing to effectively print $85 billion per month of new money after months of telegraphing at least a modicum of reduction can only translate that our economy is frail and infirm, languid if you will. SNIP Up until ten years...
  • The Federal Reserve Exudes Growing Desperation

    12/13/2013 11:11:21 AM PST · by publius321 · 13 replies
    A Marketwatch column points out that the "Fed wants to exit QE but keep long-term rates low". This is as realistic as saying that "I want to get rich but I do not want to work". They cannot keep rates down without buying UNLESS the Treasury takes over, literally prints the money off their presses - then buys their bonds themselves at auction instead of the Federal Reserve buying. One of the things that keeps these scoundrels in the administration out of prison is that...
  • Banks look to charge for holding customers’ money, if Fed counters ‘lazy’ behavior

    11/26/2013 9:48:37 AM PST · by Red in Blue PA · 43 replies
    Bank customers could look forward to being charged to keep their money in U.S. banks. That’s the latest threat coming out of Wall Street, according to a report in the Financial Times, as financial institutions look to combat a possible interest rate cut from the Federal Reserve on its bank reserves. This latest potential step would be a hit to depositors, already earning close to zero interest on checking and savings accounts. But the banks say it’s a side effect of the Fed’s quantitative-easing strategy and its eventual tapering of its asset purchases of $85 billion a month, which has...
  • Is Janet Yellen Really Larry The Cable Guy? "Git 'er Done!" (Wants MORE QE)

    11/14/2013 6:28:12 AM PST · by whitedog57 · 5 replies
    Confounded Interest ^ | 11/14/2013 | Anthony B. Sanders
    Janet Yellen, nominated to be the next chairman of the Federal Reserve, signaled she will carry on The Federal Reserve’s unprecedented stimulus until she sees improvement in an economy that’s operating well below potential. Here is her prepared statement. “A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases. Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.” “Unemployment is still too high, reflecting a labor market and economy performing far short of their potential.” Of course, unemployment...
  • Ex-Fed official: 'I'm sorry for QE'

    11/13/2013 5:58:23 AM PST · by sr4402 · 9 replies
    Fast Money ^ | Tuesday, 12 Nov 2013 | 6:45 PM ET | Bruno J. Navarro
    "I can only say: I'm sorry, America," he wrote. "The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time."
  • Former Fed Quantitative Easer Confesses, Apologizes: "I Can Only Say: I'm Sorry, America"

    11/12/2013 6:32:25 AM PST · by Starboard · 169 replies
    Zero Hedge ^ | 11/12/2013 | Andrew Huszar
    The Fed keeps buying roughly $85 billion in bonds a month, chronically delaying so much as a minor QE taper. Over five years, its bond purchases have come to more than $4 trillion. Amazingly, in a supposedly free-market nation, QE has become the largest financial-markets intervention by any government in world history. And the impact? Even by the Fed's sunniest calculations, aggressive QE over five years has generated only a few percentage points of U.S. growth. Having racked up hundreds of billions of dollars in opaque Fed subsidies, U.S. banks have seen their collective stock price triple since March 2009....
  • SR 119: Fake US GDP

    11/09/2013 12:22:13 PM PST · by Attention Surplus Disorder · 6 replies
    YouTube ^ | November 08, 2013 | Bill Still
    Bill Still makes the case that given that QE injections ARE COUNTED in GDP growth, and 3Q GDP growth has been roughly $196 billion during the last quarter while QE injections are $85 billion per month or $255 billion. Meaning: The US actually shrunk $59 billion during the last quarter.
  • Faber: Fed Might Hike QE to $1 Trillion a Month

    10/21/2013 7:50:18 AM PDT · by Nachum · 60 replies
    Money News ^ | 10/21/13 | Michael Kling
    The Federal Reserve will increase its monthly bond purchases not decrease them, says Marc Faber, publisher of the Gloom, Boom & Doom Report. "The question is not tapering. The question is at what point will they increase the asset purchases to say $150 [billion], $200 [billion], a trillion dollars a month," Faber told CNBC. The Fed is now buying $85 billion of Treasury and mortgage bonds a month in what's known as quantitative easing (QE). When the Fed first started buying long-term bonds, in what was called QE1, it initially said the program would last six months. But it started...
  • Some Traders Got [Fed QE] 'No Taper' Decision News Earlier

    09/24/2013 8:48:10 PM PDT · by edpc · 12 replies
    CNBC via Yahoo News ^ | 24 Sept 2013 | Eamon Javers
    In the wake of an unusual trading pattern after the Federal Reserve's decision to continue economic stimulus last week, Fed officials have contacted certain news organizations to discuss rules and procedures for the central bank's advance release of sensitive information, CNBC has learned. On Sept. 18, the Federal Reserve shocked the financial world with its decision not to scale back its level of support to the economy as most market participants expected. Financial markets reacted at the speed of light, pushing stocks dramatically higher in just moments. But it looks like the speed of light just wasn't fast enough for...
  • 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...
  • Gold Climbs Nearly 5%

    09/19/2013 7:00:27 PM PDT · by TigerLikesRooster · 16 replies
    WSJ ^ | September 19, 2013 | MATT DAY and FRANCESCA FREEMAN
    COMMODITIES Updated September 19, 2013, 3:15 p.m. ET Gold Climbs Nearly 5% Futures Extend Post-Fed Rally Gains By MATT DAY and FRANCESCA FREEMAN NEW YORK—Gold futures rose nearly 5% on Thursday, extending the gains made after the Federal Reserve surprised investors by announcing it would stick to its bond-buying program. The bond purchases have pumped cash into the financial system, raising the specter of inflation or a weakened dollar. Some investors view gold as a hedge against either scenario. The most actively traded gold contract, for December delivery, rose $61.70, or 4.7%, to settle at $1,369.30 a troy ounce on...
  • 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>