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March 27, 2012
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Bloomberg.com – Pimco’s Gross Says Fed May ‘Hint’ at QE3 at April Meeting Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the Federal Reserve will probably signal it plans to arrange a third round of debt purchases when policy makers meet in April. The end of tax breaks… Continue reading Is QE3 Coming?
<Click on chart for larger image> Bloomberg.com – Fed’s Inflation Gauge Reveals 2008 High a Distant Threat It also said oil will “push up inflation temporarily, but the committee anticipates that subsequently inflation will run at or below the rate that it judges most consistent with its dual mandate” of promoting maximum employment and stable… Continue reading At What Measure Is Inflation A Problem?
Bloomberg.com – Bernanke Says Accommodative Policy Needed to Cut Joblessness Federal Reserve Chairman Ben S. Bernanke said while he’s encouraged by the unemployment rate’s decline to 8.3 percent, continued accommodative monetary policy will be needed to make further progress. The decline in unemployment may reflect “a reversal of the unusually large layoffs that occurred during… Continue reading Bernanke Is Not Worried About Okun’s Law
Time.com – The 97-lb. Recovery Remember the recovery? It officially began way back in the middle of 2009, 18 months after the financial system–and then everything else in the American economy–fell apart. Given that nobody has gotten much of a raise since then and that unemployment is still above 8%, you’d be forgiven for not… Continue reading TIME Magazine, What Is The Contrarian Play?
CEPR – Dean Baker: WSJ Lets Bernanke Play Fast and Loose in Lecturing About the Fed and the Economy Reserve Board Chairman Ben Bernanke get away with a bit of Three-card Monte in a lecture he gave to George Washington University about the Fed’s role in the housing bubble. According to the WSJ Bernanke absolved… Continue reading Bernanke’s Lectures
Business Insider – This Oil Chart Could Decide The Next Election Rising gas prices have appeared to immediately weigh on President Barack Obama’s approval ratings, leading political analysts to question whether a further increase in gas prices could compromise his early lead in the 2012 election. This graph from Trevor Houser, a partner at the… Continue reading Election Update
The Financial Times – Wolfgang Münchau: Europe’s bailout bazooka is proving to be a toy gun Welcome back to the crisis. And it’s set to get worse once the markets discover that the eurozone is about to fudge the increase in the European rescue umbrella. The argument I am hearing is a wonderful example of… Continue reading Are The European Bailouts Inadequate?
CNBC – First Quarter On Track to Be Best in 14 years Stocks enter the final week of what’s shaping up to be the best first quarter in 14 years, with little hope the second quarter can match its gains. The focus in the coming week will be on the U.S. economy and whether the… Continue reading Booming Stocks
The New York Times – Paul J. Lim: This Bull Market Is Hard to Pin Down Doug Ramsey, chief investment officer at the Leuthold Group, also says that while this may be a new bull market, it is what he calls a “noneconomic” rally. In other words, this bull market — unlike the one that… Continue reading What Is A Bull Market?
<Click on chart for larger image> Bloomberg.com – BOJ Crosses Rubicon With Desperate Monetary Policy, Hirano Says The Bank of Japan’s decision to expand bond purchases and set a 1 percent inflation goal was a step too far that leaves the monetary authority likely to finance government deficit spending, a former executive said. “They looked… Continue reading Has The Bank Of Japan Gone Too Far?
The New York Times – Anger at Goldman Still Simmers Just before the financial crisis began in September 2008, a prominent hedge fund appeared well positioned to take advantage of any turmoil in the markets. That fund, Copper River Partners, had made sizable bets months earlier against companies whose stocks it expected to suffer. Within… Continue reading Life As A Muppet