Newsclips
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November 8, 2010
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Comment In our conference call yesterday (Handout, Audio, Webcast) we talked extensively about QE2 and its real objective. Bernanke told us yesterday in an extraordinary Washington Post op-ed. This approach eased financial conditions in the past and, so far, looks to be effective again. Stock prices rose and long-term interest rates fell when investors began… Continue reading Is QE2′s Purpose To Create A Stock Market Bubble?
The Telegraph (UK) – Doubts grow over wisdom of Ben Bernanke ‘super-put’ The early verdict is in on the US Federal Reserve’s $600bn of fresh money through quantitative easing. Yields on 30-year Treasury bonds jumped 20 basis points to 4.07pc. It is the clearest warning shot to date that global investors will not tolerate Ben… Continue reading Not Everyone Is Happy With QE2
Reuters – Emerging market policymakers slam Federal Reserve move Policymakers from the world’s new economic powerhouses in Latin America and Asia on Thursday criticized the U.S. Federal Reserve’s move to inject billions of dollars into the U.S. economy to boost growth. Emerging market economies said the Fed’s move made any substantive deal on cutting global… Continue reading Emerging Economies Are Not Happy With QE2 Either
<Click on chart for larger image> Bloomberg.com – Irish Deepen `Last Chance’ Budget Cuts as Trichet Backs Squeeze Ireland is accelerating efforts to cut its budget deficit as European Central Bank President Jean- Claude Trichet swings behind the country’s drive to avert a European Union-led bailout. The finance ministry yesterday announced savings and tax increases… Continue reading Europe
Comment In our conference call yesterday(Handout, Audio, Webcast) we also discussed the affect POMO (Permanent Open Market Operations) is having on markets. We detailed this last week and will update it next week. POMO seems to be having a huge effect on markets, which is important because the New York Federal Reserve announces the POMO… Continue reading The New Money Printing Schedule Comes Out Next Wednesday
Reuters – Ron Paul vows renewed Fed audit push next year U.S. Republican Representative Ron Paul on Thursday said he will push to examine the Federal Reserve’s monetary policy decisions if he takes control of the congressional subcommittee that oversees the central bank as expected in January. “I think they’re way too independent. They just… Continue reading Ron Paul
From Zero Hedge
The Wall Street Journal – Fed Fires $600 Billion Stimulus Shot The Federal Reserve, in a dramatic effort to rev up a “disappointingly slow” economic recovery, said it will buy $600 billion of U.S. government bonds over the next eight months to drive down interest rates and encourage more borrowing and growth. Many outside the… Continue reading QE2
Comment Prior to yesterday’s FOMC announcement, Erin Burnett interviewed former Federal Reserve governor Laurence Meyer and asked the following question (roughly 9:10 in the video above): Erin Burnett: This unemployment issue is the big issue. And now you have the Fed going about it by printing money and I know you said there is a… Continue reading Is The Federal Reserve Trying The Fix The Economy By Creating A Stock Market Bubble?
The Financial Times – Mohamed El-Erian: QE2 blunderbuss likely to backfire Given the high market expectations, the US Federal Reserve had no choice but to announce a second tranche of quantitative easing, nicknamed QE2. But the measure is an inevitably blunt instrument for the difficult task of restoring growth and generating jobs. The benefits accruing… Continue reading QE2 Is Yesterday’s News, On To QE3
Zero Hedge (Blog) – To All Who Front-Ran The 35% SOMA Limit Elimination: Congratulations As Zero Hedge predicted, the 35% SOMA limit was removed. We hope readers managed to profit from this inevitable development. Our full post from October 29 recreated below. With the bogey of a minimum QE announcement of $100 billion a month,… Continue reading Goodbye To The 35% SOMA Limits