Bill Dudley, never one to shy from causing controversy, regained the throne of most honest Fed official. Speaking at an economics conference, the President of the New York Branch, the one with all the QE assets, Dudley admitted, "We don't understand fully how large-scale asset purchase programs work to ease financial market conditions, there's still a lot of debate ..." [...]
A few more pieces of the great taper justification puzzle fell into place last week. The politicians struck a budget deal that, as I said last week, changes little in the spending and taxes equation for the next two years, a period that pushes any real changes past the next election. And unless that election produces some pretty dramatic changes [...]
Janet Yellen appeared before the Senate last week in the first step toward her apparent crowning as the new head of the Federal Reserve. The Senate Banking Committee asked a few tough questions but in general it was a love fest and no wonder. Quantitative easing has helped no group more than the politicians and the federal government they direct. [...]
From yesterday afternoon - screen grab of the home page of the Financial Times (illustrations added). It's not a far cry from this (via ZeroHedge). THE QE BEATINGS WILL CONTINUE UNTIL MORALE IMPROVES!!!! Click here to sign up for our free weekly e-newsletter. “Wealth preservation and accumulation through thoughtful investing.” For information on Alhambra Investment Partners’ money management [...]
The US stock market, now joined by most of the rest of the world, continues its one way march higher. Those who focus on fundamentals, economic or stock market, have been scratching their heads all year for an explanation, but the reality is that there is no fundamental reason for the 20%+ run this year. Earnings growth has been lackluster [...]
Last thing I remember, I was Running for the door I had to find the passage back To the place I was before "Relax, " said the night man, "We are programmed to receive. You can check-out any time you like, But you can never leave! " Hotel California, The Eagles The Fed surprised the markets last week when it [...]
The FOMC met last week and nothing happened. Oh, there was some slight adjustment to the wording of the statement released after the meeting, but really nothing of substance was decided. The biggest change, that had all of Wall Street calling up their old English professors, was a change in the way the Fed characterized the current state of the [...]
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