Tag Archives: the fed

Federal Reserve Suddenly Shows $420 Billion in Surprise Loans

Mark Denninger wonders how the Federal Reserve loaned $420 billion in a single week at the end of March. One possibility comes from Seeking Alpha: Bank Lending and the Banking System Remain Weak: The commercial banking figures for the banking … Continue reading

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Interest rates to rise or fall? The man who sets interest rates says “rise”

Ben Bernanke is chairman of the Federal Reserve, which sets the interest rate at which banks borrow money in the United States. He apparently thinks the Fed is going to raise rates, judging by the fact that he refinanced his … Continue reading

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U.S. Will Have to Sell 11X Fixed Income in 2010 to Keep Running

ZeroHedge – Brace For Impact: In 2010, Demand For US Fixed Income Has To Increase Elevenfold… Or Else: Here is the only math you need to know as we all look at 2010: in 2009 US Dollar denominated fixed income … Continue reading

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Inflation or deflation? Phil. Federal Reserve Bank President says “Inflation”

Monetary Policy and the Wisdom of Wayne Gretzky: Ultimately, inflation is a monetary phenomenon and there is no question that current monetary policy is extraordinarily accommodative. The Federal Open Market Committee has maintained the federal funds rate near zero for … Continue reading

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Ben Bernanke has done gone and went insane

Karl Denninger – Open Letter To The Chinese Premier: Dear Wen Jaibao: We in America have noted with concern your nations’ expression of alarm at our Federal Reserve’s blatant money-printing, debt monetization, and interference in the free markets, in particular the … Continue reading

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Delicious free lunches for banks!

Arnold Kling – Thoughts on the Macro Paradigm: At this point, I was cornered. I had no choice but to say what I really believe about what the Fed was doing. In spite of all the sophisticated rhetoric about “quantitative … Continue reading

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Inflation or deflation? The man with the dollar printing press says “inflation”

People are debating whether the United States is going to experience inflation or deflation. Ben Bernanke, the chairman of the U.S. Federal Reserve bank, has always intended to fight any hint of deflation with a massive dollar printing campaign. It’s … Continue reading

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“Some days I really wish I could go back to being completely clueless about the economy”

From a financial board I read. “Some days I really wish I could go back to being completely clueless about the economy. Now I know enough to be scared but not enough to actually know what to do.” I know … Continue reading

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Fed’s quixotic plan to raise interest rates to the moon once inflation starts

AP – Officials: Fed will need to boost rates quickly: To prevent inflation from taking off, the Federal Reserve will need to start boosting interest rates quickly and aggressively once the economy is back on firmer footing, Fed officials warned … Continue reading

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Federal Reserve has bought 100%+ of 2009 mortgage market

Chris Martenson – Federal Reserve Buys More Than 100% of Mortgages Issued in 2009: In other words, the Federal Reserve alone bought $722 billion of mortgages and agency debt when only $686 billion in new mortgages were issued. So, through … Continue reading

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Rep. Alan Grayson questions the Fed’s Alvarez before Congress

Via Zero Hedge and Matt Tiabbi. Grayson (D-FL) comes off as a slightly-crazed attack dog, but wow does he ever put Alvarez on the hot seat. Alan Grayson: I would like to know whether it is within the Federal Reserve’s … Continue reading

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For once, I hope Barney Frank is right

Barney Frank Says Ron Paul’s Audit The Fed Bill Will Pass In October.

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Martenson on the Federal Reserve’s “shell game”

This one is a doozy. I can’t say I understand every bit of what’s going on in this one, but here’s the takeaway. Martenson’s thesis is that the Federal Reserve is monetizing more debt than previously realized, which would lead … Continue reading

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Bernanke in 2007: economy positioned for recovery

Hussman’s Weekly: “Our forecast is for moderate but positive growth going into next year. We think that by the spring, early next year, that as these credit problems resolve and, as we hope, the housing market begins to find a … Continue reading

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The Fed and asset bubbles, again

Marginal Revolutions – Identifying and Popping Bubbles: Evidence from Experiments: The last factor that does seem to make a difference is that bubbles liftoff and reach higher peaks when there’s a lot of cash floating around.  In theory, this shouldn’t … Continue reading

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Bloomberg wins FOIA suit against Federal Reserve

Reuters – Federal Reserve loses suit demanding transparency: A federal judge on Monday ruled against an effort by the U.S. Federal Reserve to block disclosure of companies that participated in and securities covered by a series of emergency funding programs … Continue reading

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Fed official: “The Fed’s strategy is aimed at promoting a future rise in inflation”

I’m still trying to understand what this statement means: Financial markets have not fully understood that the U.S. Federal Reserve’s pledge to keep interest rates exceptionally low for an extended period means they will stay low beyond when officials normally … Continue reading

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More on the Federal Reserve’s effect on stock markets

Jesse’s Cafe Americain – Why Is the Fed Creating Excess Reserves in the Banking System and Paying Interest on Them? The essence of the essay was to point out the enormous increase in bank reserves which the Fed has created … Continue reading

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The stock market rally is being inflated by easy Federal Reserve money

Any number of blogs I read have been saying that the recent stock market rally is based on nothing but loose money provided by the Federal Reserve to banks and other financial institutions. The stock market P/E ratios are crazy … Continue reading

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Learning economics on the Monopoly board

And not the usual lessons: Your argument holds in a monopoly game. But we temporarily got around the basic limit of what can be financed in a monopoly game by adding a second monoply game to the system: we increased … Continue reading

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