It has been getting a bit warm around here. I thought it was just that the air conditioner was getting a little long in the tooth.
It was Yellen. Then Summers. Then Yellen. The race has been run and guess what? The Keynesians win!
In the July 26, 2013 edition of the Bank Credit Analyst, editor Jim Grant notes that when Ben Bernanke was beginning the second round of “quantitative easing,” he described it in February 2011 Congressional testimony as equivalent to an interest rate cut. In recent Congressional testimony explaining what might be (or might not be) a forthcoming “taper” in “quantitative easing,” he suggested that it would not be equivalent to a rate hike.
“When it comes to hubris, nobody beats the Federal Reserve.” – Rick Santelli
Steady as the QE goes, but the Fed is fully prepared to ramp up printing if it thinks it has to.
Every politburo has got at least one trouble maker. The Federal Open Markets Committee is no different, Jeff Lacker serves this roll to a limited extent.
In the attached interview Mr. Lacker says a number of interesting things, among them that economic expansion after 2007 is in his opinion a break with an historical trend line (which will continue).
Just one more hit. That will make everything better. Just…one…more…hit……….
Not only is the Bank of Japan going to buy huge amounts of government bonds, but it’s also going to buy stocks, ETFs, and real estate investment trusts.
ZH reports on Bank of America’s admission that “today’s stock market has lost some of its ability to reflect underlying economic trends.”
Well, no kidding. Even Bloomberg.com is saying officially that the markets are rigged and we investors had better just get used to it.
The tone of the Federal Reserve has shifted a bit. Is it broadcasting a new tightness? Maybe. We’ll find out soon enough.
Are the Japanese as irrational as they seem?