Tag Archive: Bernanke


As Federal Reserve Chairman Ben Bernanke’s tenure draws to a close, these are the top 10 take away from the last night :blog

1.    Janet Yellen voter to taper

2.     Taper nothing more than symbolic – $10B split between Treasuries and MBS

3.     Fed changes forward guidance – Low rates now appropriate “well past the time that the unemployment rate drops below 6.5%”

4.     Bernanke believes FOMC will taper QE probably at each meeting, $10B each time with end of QE before 2014 year end Continue reading

Well this is brilliant on Saturday as a read 🙂images

The Federal Reserve is awaiting
That prices may start re-inflating,
So they can foresee
Unwinding QE,
Whose tapering they’ve been debating.

The Fed will not bother to taper
Its purchase of Treasury paper
‘Til the jobless rate now
And inflation allow
An end to their stimulus caper.
Bernanke must act with agility
To avoid causing stock volatility
‘Til he can discern
A sustainable turn
To price and employment stability.
From :

LIMERICKS ÉCONOMIQUES

The Monetary Policy drama

Everyone interested in the world economy should watch Bernanke‘s recent speech and the press conference:

FED 2

FED 2 (Photo credit: Wikipedia)

 (Switch to full screen, it works well). Here is the base URL which collects together all the materials about the Fed’s announcement. The `exit strategy principles’ are in the June 21-22, 2011 meeting. 

The announcement reinforces the sense that the US economy is healing. The US Fed is keen to have inflation of 2% and believes the NAIRU is around 6.5%. Hence, once they come into the range where unemployment has achieved a few strong improvements and is trending to get below 6.5%, while price stability has not been compromised in that inflation expectations are still at 2%, they will start unwinding the extreme expansionary stance of monetary policy that has been in place in recent years. All through, there is no fixed calendar about what the Fed will do when. There is a clear articulation of the decision rules that will be employed, about how future data releases will generate future policy. 

Why did the world see this badly? Continue reading

The Stock Twits did a great job on the never ending Quantitative Easing . As T.S. Eliot said The end is where we start from.A

Below are nine points  believe are the key going forward:

  1. The Fed is not uncomfortable yet with the level of market speculation, complacency and asset price reflation – but it is totally and completely aware of what we’re up to.
  2. The castigating rhetoric of hedge fund managers emanating from both Sohn and SALT, whose tongues loll out of their mouths from their break-neck pursuit of the runaway benchmark indexes, has not been lost on the FOMC. Voting members are not only aware of the effects their policies are having, they are aware of the perceptions surrounding them as well. Continue reading

An Open proposal

Here is an expression of open proposal someone who could understand these priceless charts :

  1. You make the impossible possible
  2. Cost/time.whatever it takes – I don’ think you are great, I think you’re fantastic for what you’re supplying my demand inelastic.
  3. The Monopoly you have on my heart is all natural
  4. Our risk default is zero
  5. The S&P was in red but I wasn’t blue becoz I shorted the market and went long on you.
  6. Consumer confidence – Is 100% expectations about 6 months ahead 100% about current conditions.
  7. More & more each day
  8. I will never be Bernanke and you’re the Perp . Becoz where you are involved I can’t adopt a Zirp
  9. The love game theory – The optimal strategy is obvious
  10. The marginal returns of spending time with you will never diminish
  11. Irrational, asymmetric love is so foolish. But I could care less, IF you’re stock then I’m bullish.
  12. Economists in the pick you club – me/ me .
  13. How trading and exchange ideas over dinner would expand our set of consumption opportunities.

This was my  valentine post which I thought one of the best post of this year :-

 

%d bloggers like this: