globaleconomicanalysis.blogspot.com - 12/17/2008
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The Treasury rally continued in spectacular fashion in conjunction with the ZIRP Arrival: Fed Targets Interest Rates 0 to 1/4 Percent . From the FOMC Press Release . The focus of the Committee's policy going forward will be to support the functioning of financial markets and stimulate the ...
econbrowser.com - 12/22/2008
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econbrowser.com —
Here I survey how we got here, where
things currently stand, and what it all means. Let...
me begin by reviewing some first principles of what the Fed is all about. How did the cash currently in your wallet get there? You withdrew it from an ATM, ...
(more)
Federal Reserve balance sheet
vimeo.com - 12/23/2008
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vimeo.com —
Thank you Paddy. I'm just trying to decipher
what is new money and what is existing money...
that is merely being redistributed. For instance, it seems Treasury is lending money to distressed banks (at 0-.25%) usng funds it borrows from savers elsewhere ...
(more)
Quantitative easing on Vimeo
econbrowser.com - 12/16/2008
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econbrowser.com —
Today's announcement from the Federal Reserve marks the
end of the road for Plan A (fighting the...
recession by lowering interest rates), and the beginning of ... what? The Fed's announcement begins : The Federal Open Market Committee decided ...
(more)
Quantitative easing
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Free Money
Bear Mountain Bull —
Comments from Mish on the Fed : The Fed is looking at the “benefits” of purchasing longer-term Treasury securities. The benefit is to banks who are front running the trade. Banks can now borrow from the Fed at the discount rate of .5% and invest somewhere out on the yield curve at a higher rate. And as long as the Fed is not going to contract credit, banks can hold to maturity and pocket “free money”. The odds of Bernanke contracting credit any time soon are essentially zero. Bernanke hopes ZIRP (Zero Interest Rate Policy) will spur lending. But why lend in the middle of a ...
Likely outcome of new Fed policies?
Finance Trends Matter —
... as we can see from William Poole's comments, the Fed is totally unconcerned about any inflationary effects that will take hold due to their "money printing". It's kind of stunning to hear a former regional Federal Reserve bank president deliver this verdict, no? Related articles and posts: 1. Around the corner - Bear Mountain Bull. 2. Quantitative easing American style: free money - Mish. 3. Dollar falls most against ...
Quantitative Wheezing: The Difficult Search for Yield
TraderFeed —
... As Mish points out, banks can borrow money essential for free from the Fed and simply stash it at higher interest rates further out on the yield curve. Making money cheaper doesn't necessarily increasing the incentives for banks to lend. Meanwhile, I talked with representatives from two large brokerage firms, both of whom confirmed that their inventory of longer-term certificates of deposit (more than 3 years) had been completely bought out. ...
Best Quotes of December 2008
GoldSeek.com —
... interest will be paid in more of its own script, I do not believe this con will work. In the end, rather than filling our stockings with Christmas goodies, our foreign creditors will likely substitute lumps of coal. Of course given how high coal prices will ultimately rise as a result of all this inflation, in Christmas Future perhaps our stockings will be stuffed with nothing but our own worthless currency. It might night burn as well as coal, but at least we will have plenty of it. Mike Shedlock, Mishs Global Economic Trend Analysis The Fed is looking at the "benefits" of ...
Related Content
Fed Watch: Zero, But Not Quite Quantitative Easing
economistsview.typepad.com 12/19/2008 — Can the Fed's current policy be described as quantitative easing?:
Zero, But Not Quite Quantitative Easing, by Tim Duy : On the surface,
the Fed’s recent statement should not have been much of a surprise. It was
remarkably consistent with Fed ...
Quantitative easing
econbrowser.com 3/19/2009 — The U.S. Federal Reserve yesterday finally took the step many of us had been urging for some time.
Let's start with the Fed's summary of current conditions :
Information received since the Federal Open Market Committee met in January indicates ...
Did (or Didn't) Japan Just Re-introduce Quantitative Easing?
japanjapan.blogspot.com 12/8/2008 — With the US Federal Reserve now adopting what is widely regarded as some variant of quantitative easing (QE), and with the Bank of Japan cutting interest rates amidst economic conditions which BoJ Governor Masaaki Shirakawa describes as "severe", ...
Bernanke on the Fed's balance sheet
econbrowser.com 1/14/2009 — In remarks in London today, Fed Chair Ben Bernanke let the world know how he views the risks and benefits of the recent dramatic changes in the assets and liabilities of the U.S. Federal Reserve.
One of Bernanke's goals was to reassure the public ...
The Federal Reserve's balance sheet
econbrowser.com 10/26/2008 — On Thursday, the Federal Reserve issued its weekly H.4.1 report , which provides details of the Fed's balance sheet. Once upon a time, this was one of the least interesting of the government's many releases of data. These days, it's become one of the ...
Fed Watch: Policy Adrift
economistsview.typepad.com 11/20/2008 — Tim Duy lets loose:
Policy Adrift, by Tim Duy : I understand the Federal Reserve Chairman Ben Bernanke is considered
something of a sacred cow, our one point of light in an uncertain world. An
academic who cannot be questioned by other ...
Bernanke & Co. is Locked and Loaded
kudlowsmoneypolitics.blogspot.com 12/17/2008 — In a monetary version of shock-and-awe, the Federal Reserve unleashed a massive easing move with its FOMC policy announcement Tuesday -- one that represents a sea change in central-bank operations. For starters, Bernanke & Co. established a new ...
Helicopter Ben Pulls Out Bazooka
globaleconomicanalysis.blogspot.com 12/2/2008 — Treasuries staged yet another massive rally today as Helicopter Ben imitates Paulson and pulls out his own bazooka. Inquiring minds are noting that Treasury Yields Drop to Record Lows as Bernanke Cites Buybacks . Treasuries rose, pushing yields to ...
Quantitative easing
marginalrevolution.com 3/19/2009 — Bernanke will do it . I'm sitting in an airport, so here is a very quick take. It is cheaper and quicker than fiscal stimulus; this should have been our first move. It is more likely to work. There are two effects: ...
Overview —
The Economist: Full print edition 12/18/2008
The Federal Reserve lowered the target for its benchmark interest rate from 1% to between zero and 0.25% and said the rate was likely to remain “exceptionally low” for a while. The Fed said it would use “all available tools” ...
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