It’s been my longstanding opinion that the Federal Reserve is largely powerless in this kind of environment (balance sheet recession). Over the last few weeks there has been an endless drumbeat for increased Fed action and more intervention. As we all know, James Bullard responded with a call for more quantitative easing. Mr. Bernanke was glad to fill the Fed trough yesterday as he initiated QE lite and certainly implied that the Fed would move to initiate a more aggressive form of QE in the future. But the market is not responding well at all. Pundits are blaming today’s action on overseas markets and several other moving parts, but I just have to wonder if the market hasn’t realized that the Emperor has no clothes – the Fed is powerless.
Monetary policy has run into a wall. Fiscal policy has also hit a wall. The private sector is swimming without a life vest now. How will the markets come to grips with an environment in which government is largely powerless? If the 80% rally in equities during a time of unprecedented government intervention is any evidence then I think it’s safe to say that equities might be particularly dangerous during a time when government is moving to the sidelines….
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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It’s been my longstanding opinion that the Federal Reserve is largely powerless in this kind of environment (balance sheet recession). Over the last few weeks there has been an endless drumbeat for increased Fed action and more intervention. As we all know, James Bullard responded with a call for more quantitative easing. Mr. Bernanke was glad to fill the Fed trough yesterday as he initiated QE lite and certainly implied that the Fed would move to initiate a more aggressive form of QE in the future. But the market is not responding well at all. Pundits are blaming today’s action on overseas markets and several other moving parts, but I just have to wonder if the market hasn’t realized that the Emperor has no clothes – the Fed is powerless.
Monetary policy has run into a wall. Fiscal policy has also hit a wall. The private sector is swimming without a life vest now. How will the markets come to grips with an environment in which government is largely powerless? If the 80% rally in equities during a time of unprecedented government intervention is any evidence then I think it’s safe to say that equities might be particularly dangerous during a time when government is moving to the sidelines….
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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It’s been my longstanding opinion that the Federal Reserve is largely powerless in this kind of environment (balance sheet recession). Over the last few weeks there has been an endless drumbeat for increased Fed action and more intervention. As we all know, James Bullard responded with a call for more quantitative easing. Mr. Bernanke was glad to fill the Fed trough yesterday as he initiated QE lite and certainly implied that the Fed would move to initiate a more aggressive form of QE in the future. But the market is not responding well at all. Pundits are blaming today’s action on overseas markets and several other moving parts, but I just have to wonder if the market hasn’t realized that the Emperor has no clothes – the Fed is powerless.
Monetary policy has run into a wall. Fiscal policy has also hit a wall. The private sector is swimming without a life vest now. How will the markets come to grips with an environment in which government is largely powerless? If the 80% rally in equities during a time of unprecedented government intervention is any evidence then I think it’s safe to say that equities might be particularly dangerous during a time when government is moving to the sidelines….
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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It’s been my longstanding opinion that the Federal Reserve is largely powerless in this kind of environment (balance sheet recession). Over the last few weeks there has been an endless drumbeat for increased Fed action and more intervention. As we all know, James Bullard responded with a call for more quantitative easing. Mr. Bernanke was glad to fill the Fed trough yesterday as he initiated QE lite and certainly implied that the Fed would move to initiate a more aggressive form of QE in the future. But the market is not responding well at all. Pundits are blaming today’s action on overseas markets and several other moving parts, but I just have to wonder if the market hasn’t realized that the Emperor has no clothes – the Fed is powerless.
Monetary policy has run into a wall. Fiscal policy has also hit a wall. The private sector is swimming without a life vest now. How will the markets come to grips with an environment in which government is largely powerless? If the 80% rally in equities during a time of unprecedented government intervention is any evidence then I think it’s safe to say that equities might be particularly dangerous during a time when government is moving to the sidelines….
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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© 2009 pragcap.com · Login.
It’s been my longstanding opinion that the Federal Reserve is largely powerless in this kind of environment (balance sheet recession). Over the last few weeks there has been an endless drumbeat for increased Fed action and more intervention. As we all know, James Bullard responded with a call for more quantitative easing. Mr. Bernanke was glad to fill the Fed trough yesterday as he initiated QE lite and certainly implied that the Fed would move to initiate a more aggressive form of QE in the future. But the market is not responding well at all. Pundits are blaming today’s action on overseas markets and several other moving parts, but I just have to wonder if the market hasn’t realized that the Emperor has no clothes – the Fed is powerless.
Monetary policy has run into a wall. Fiscal policy has also hit a wall. The private sector is swimming without a life vest now. How will the markets come to grips with an environment in which government is largely powerless? If the 80% rally in equities during a time of unprecedented government intervention is any evidence then I think it’s safe to say that equities might be particularly dangerous during a time when government is moving to the sidelines….
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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© 2009 pragcap.com · Login.
It’s been my longstanding opinion that the Federal Reserve is largely powerless in this kind of environment (balance sheet recession). Over the last few weeks there has been an endless drumbeat for increased Fed action and more intervention. As we all know, James Bullard responded with a call for more quantitative easing. Mr. Bernanke was glad to fill the Fed trough yesterday as he initiated QE lite and certainly implied that the Fed would move to initiate a more aggressive form of QE in the future. But the market is not responding well at all. Pundits are blaming today’s action on overseas markets and several other moving parts, but I just have to wonder if the market hasn’t realized that the Emperor has no clothes – the Fed is powerless.
Monetary policy has run into a wall. Fiscal policy has also hit a wall. The private sector is swimming without a life vest now. How will the markets come to grips with an environment in which government is largely powerless? If the 80% rally in equities during a time of unprecedented government intervention is any evidence then I think it’s safe to say that equities might be particularly dangerous during a time when government is moving to the sidelines….
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
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© 2009 pragcap.com · Login.
It’s been my longstanding opinion that the Federal Reserve is largely powerless in this kind of environment (balance sheet recession). Over the last few weeks there has been an endless drumbeat for increased Fed action and more intervention. As we all know, James Bullard responded with a call for more quantitative easing. Mr. Bernanke was glad to fill the Fed trough yesterday as he initiated QE lite and certainly implied that the Fed would move to initiate a more aggressive form of QE in the future. But the market is not responding well at all. Pundits are blaming today’s action on overseas markets and several other moving parts, but I just have to wonder if the market hasn’t realized that the Emperor has no clothes – the Fed is powerless.
Monetary policy has run into a wall. Fiscal policy has also hit a wall. The private sector is swimming without a life vest now. How will the markets come to grips with an environment in which government is largely powerless? If the 80% rally in equities during a time of unprecedented government intervention is any evidence then I think it’s safe to say that equities might be particularly dangerous during a time when government is moving to the sidelines….
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