Sept. 13 (Bloomberg) -- Former Federal Reserve Vice Chairman Alan Blinder, now a Princeton University economist, Allan Meltzer, a professor at Carnegie Mellon University, John Taylor, an economics professor at Stanford University, and Kevin Warsh, a former Fed governor, participate in a panel discussion about the potential implications of Fed monetary policy. Bloomberg's Rich Miller moderates the panel at the Bloomberg Markets 50 Summit in New York. (Source: Bloomberg) … [Read more...]
Archives for September 2012
VIDEO: Bernanke’s Theme Song
Here is some Friday fun for you. We are still in disbelief of the Fed’s reckless unbounded money printing campaign that was announced yesterday. The hubris from the Bernanke Fed is just nauseating. The consequences of this misguided monetary activism are serious and likely to be devastating to millions of Americans. We’ll have more on the Fed next week. Until then, Here is some easy listening from Carly Simon. We nominate this as Dr. Bernanke’s official theme song and we’d love to hear other suggestions from you. Send your nominations to feedback@youngresearch.com. … [Read more...]
Wrong Tool for the Job
Yesterday the Federal Reserve unleashed more quantitative easing on the American economy. The S&P 500 jumped by 1.6% in reaction to the new policy. Investors are fixated on central bank money printing because they are hoping for another short-term boost to asset prices that have been a hallmark of past money printing episodes. But hope isn't a strategy. Those investors clamoring for more stimulus are ignoring the limited efficacy of money printing. The global economy doesn't suffer from a shortage of liquidity. America's financial system is drowning in liquidity, yet U.S. economic … [Read more...]
What We’re Reading 9-14-12
The Efficacy of the FOMC’s Zero Interest Rate Policy, Daniel L. Thornton, St. Louis Fed The Hidden Costs of Monetary Easing, Gramm and Taylor, Wall Street Journal For true stimulus, Fed should drop QE3, Ruchir Sharma, Financial Times Bernanke risks creating a liquidity trap, Peter R. Fisher, Financial Times Bad Timing on Buybacks, Spencer Jakab, Wall Street Journal Corporate Cronyism Harms America, Charles Koch, Wall Street Journal … [Read more...]
VIDEO: Guess Which Strategist Works on Wall Street
Guess which of the two strategists in the videos above works on Wall Street. … [Read more...]
The Short and Sweet of the FOMC Meeting
The Fed announced today that it would restart the printing press at a rate of $40 billion per month. The newly printed money will be invested in Mortgage Backed Securities (since the Fed has already nationalized most of the treasury market). Including the extension of Operation Twist, the Fed will buy $85 billion per month in long-term securities. Don’t forget to send the Chairman a thank you card Mr. President. So even though QE II, zero percent interest rates, a commitment to hold rates at zero for what seems like forever, Operation Twist I and Operation Twist II have had almost no … [Read more...]
The Burger Flipper Recovery
Here is a shocker for you. Are you sitting down? Some of you might not like what I am about to say, but it has implications for your portfolio. You know those 4.5 million private sector jobs that President Obama boasts about creating? Yes, I know the President created nothing of the sort. Our discerning readers will point out that there has been no net job growth under Obama and that if it weren’t for all the folk who quit looking for work since the President took office, the unemployment rate would be over 11%. But it turns out that even those 4.5 million jobs the President is crowing … [Read more...]
VIDEO: ECRI’s Achuthan Says U.S. Economy Is in Recession
July 10 (Bloomberg) -- Lakshman Achuthan, chief operations officer of the Economic Cycle Research Institute, talks about the performance of the U.S. economy. Achuthan speaks with Tom Keene and Sara Eisen on Bloomberg Television's "Surveillance." (Source: Bloomberg) … [Read more...]
Stimulus Speculation Goes Global
We have commented thoroughly on the stimulus programs being signaled or implemented in the United States and Europe, but market speculation has broadened its horizons. Now anticipation of stimulus efforts from developing countries is moving prices. Speculators saw the weak foreign trade data announced Monday morning by China as cause for optimism when it comes to the prospect of future fiscal stimulus. China’s imports declined by 2.7% compared to the year before, and exports only grew at—what is for China—a very modest 2.7% over the year. The average annual growth for imports and exports … [Read more...]
Live to Fight another Day
At year-end 1965 the Dow Jones Industrial average closed at 969.26. At year-end 1981, sixteen years later, it closed lower at 875. That’s a long time of doing nothing. Imagine what it must have felt like had you retired at year-end 1965 at age 65. That’s why dividend paying stocks are so important. They help you live to fight another day. At Young Research, the Retirement Compounder’s program seeks out stocks that pay dividends. Not only that, the company needs to have paid dividends for a long-time and have a history of increasing dividends. Let’s say you find a few of these gems that … [Read more...]