The Wall Street Journal – Sequester Headlines Have Been Scarier Than Reality—So Far It has been three months since the onset of the across-the-board cuts in federal spending known as the “sequester.” “These cuts are not smart. They are not fair. They will hurt our economy,” President Barack Obama said in February. “They will add… Continue reading Remember The Sequester?
Bloomberg.com – Caroline Baum: Can the Fed Make Up Its Mind on QE? When the Federal Reserve first introduced its either/or stance on quantitative easing, I wasn’t sure if it was a PR ploy or a serious plan. Specifically, the Fed said it was prepared to increase or reduce the current $85 billion-a-month pace of… Continue reading Timing The Taper
<Click on chart for larger image> MoneyBeat (WSJ Blog) – Fannie-Freddie Bill Leaves Little for Shareholders A draft of a Senate bill that proposes replacing Fannie Mae and Freddie Mac with a new government reinsurer offers few, if any, signs that equity investors in the bailed-out mortgage giants will be paid, according to a draft… Continue reading Fannie & Freddie
The Wall Street Journal – IMF Concedes It Made Mistakes on Greece The International Monetary Fund has admitted to major missteps over the past three years in its handling of the bailout of Greece, the first spark in a debt crisis that spread across Europe. In an internal document marked “strictly confidential,” the IMF said… Continue reading The IMF Mishandled The Greek Bailout
The Wall Street Journal – ‘Dark Pools’ Face Scrutiny Regulators are ramping up scrutiny of an opaque corner of the market where stocks change hands in the dark. The Financial Industry Regulatory Authority, Wall Street’s self-regulatory body, last month sent 15 examination letters to operators of “dark pools”—lightly regulated, off-exchange trading venues that have been… Continue reading Regulating Dark Pools
Bloomberg.com – What to Do When the Invisible Hand Stops Working Economists rave about the power of the market to deploy productive resources better than any central planner possibly could. A mysterious process, which Adam Smith called the “invisible hand,” guides countless individuals with conflicting aims to somehow coordinate into a remarkably effective economic organization.… Continue reading Adam Smith’s Invisible Hand
Conference Call Presentation/Charts of the Week Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/503842-698918.mp3|titles=Conference Call ] Topics Covered This Week Include: US GDP Growth US Growth Expectations European Growth The Forecast For Europe World GDP Inflation Expectations Piecing Together The Federal Reserve’s Muddled Message The Federal Reserve’s Balance Sheet And Stocks A Short History Of QE And The Stock Market Stock… Continue reading Conference Call Presentation/Charts of the Week
Comment Jim Bianco was on Bloomberg TV yesterday discussing the Federal Reserve and the markets. To view the interview click on the image above. To view any of our recent interviews click here. Bloomberg.com – Fed’s George Calls for Reducing QE Citing Higher Risk Taking Federal Reserve Bank of Kansas City President Esther George, who… Continue reading The Federal Reserve & The Markets
The Financial Times – European youth unemployment: nowhere near 25 per cent Youth unemployment is a hot topic at the moment. Both the OECD and the UN have warned that the spiralling rates across many advanced economies will have severe consequences. Nearly a quarter of European under-25s are now unemployed, the latest reported figures show.… Continue reading Unemployment In Europe
Project Syndicate – The Threat to the Central-Bank Brand All this will not matter much if central banks live up to their reputation as responsible and powerful institutions that deliver on their economic promises. But if they do not – essentially because they are not getting the required support from politicians and other policymakers –… Continue reading Addicted To Easy Money
Forbes.com – The Fed’s Zero Interest Rate Policies Amount To A War On Jobs As interest rates continued to fall over the next two decades, the process continued. The use of computers became increasingly common throughout the economy. Writers learned to compose on a blank screen instead of a sheet of paper. Computer controls began… Continue reading Low Interest Rates And Jobs