Weekly Economic and Market Review
The market got exactly what it expected last week and the result was another leg higher in a rally built on two dubious assumptions: gridlock is good and the Fed can fix what ails the economy. The mid term elections delivered control of the House of Representatives to John Boehner and the Republicans while the .. read more
On November 7th, 2010,
posted in: Economy by Joseph Y. Calhoun Tags: congress gridlock, construction spending, deflation, economic analysis, economic reports, election and markets, employment report, factory orders, falling dollar, fed balance sheet expansion, fed buying treasuries, fed easing, fed meeting, gridlock, gridlock markets, inflation, ism manufacturing, ism non-manufacturing, ism surveys, jobless claims, mortgage applications, pending home sales, personal income and spending, qe ii, quantitative easing, savings rate
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Will the Next Fed Move Be An Ease?
I think that depends on whether Bernanke believes we are headed for a double dip recession. If he believes that, he will find a way to ease. Why? Because the only thing he learned from studying the Great Depression for his entire academic career is that deflation is bad. That in itself is an indictment .. read more
On June 22nd, 2010,
posted in: Economy by Joseph Y. Calhoun Tags: bank excess reserves, fed easing, fed ends payment on excess reserves, pento interest on reserves
