Jesse's Café Américain Sat 2010-09-25 09:55 EDT

FOMC: Sound the Bell. School's In, Suckas

Jesse

...What the Fed cannot do is breathe vitality into a zombie economy, and provoke a sustained recovery not tied to some sort of credit bubble. That is why stagflation remains the most likely outcome until the nation obtains the will and the determination to reform the financial system and restore a balance to trade and the real economy through a commitment to sound and practical public policy not driven by self-serving economic quackery. The dollar and bonds are made stronger through a vibrant underlying economy with the ability to generate taxable income and real returns to their holders. But in the meanwhile the special interests will be served. A profound deflation and hyperinflation remain as possibilities for the future, but they will most likely be seen on the horizon in advance of their arrival as the result of some exogenous event or catastrophic failure. So far, not a glimpse...

bell; FOMC; Jesse's Café Américain; school's; sounds; SUCKAS.

zero hedge Wed 2010-04-07 18:31 EDT

Quantitative Easing And Its Effect On Inflation And The Economy

Sancho Ponzi

The Fed's response to the financial meltdown was twofold: Interest rates were effectively set at zero, and the monetary base was increased 140%. While it is not known exactly what formula the Fed used to arrive at the 140% increase of the monetary base, the expansion from roughly 800 billion to 2.2 trillion roughly correlates with the asset backed securities since purchased by the Fed...Rather than an attempt to spur bank lending, Bernanke, like Paulson before him, employed QE strictly to offload toxic assets from bank balance sheets in an attempt to make banks and other financial institutions whole, with the effect of preserving historically inflated asset valuations for residential real estate. As a result, massive increases in federal spending have been required to offset the erosion of private sector GDP...

economy; effect; Inflation; Quantitative Easing; Zero Hedge.

Credit Writedowns Tue 2010-01-05 19:27 EST

The collapse of commercial real estate

The long-coming commercial real estate bust has arrived in the U.S. and elsewhere, a result of sky-high prices met by a severe downturn. Prices could only work in a best-case economic scenario and large busts are now coming (see my posts on Stuyvesant Town and Capmark Financial).

Collapse; commercial real estate; credit writedowns.

Tue 2009-04-21 00:00 EDT

Mish's Global Economic Trend Analysis: Bernanke's Grand Experiment Continues

Bernanke has failed, deflation has arrived

Bernanke's Grand Experiment Continues; Mish's Global Economic Trend Analysis.

Wed 2009-02-11 00:00 EST

naked capitalism: Is Cap and Trade Dead on Arrival?

arrive; capped; naked capitalism; Trade Dead.

Sun 2008-08-24 00:00 EDT

Guest Commentary

The Great Consumer Crash of 2009, by James Quinn (Prudent Bear); ``the tremendous prosperity that began during the Reagan years of the early 1980s has been a false prosperity built upon easy credit''; ``We have outsourced our savings to the emerging economies, along with our manufacturing jobs.'' ``the gathering storm has arrived. It will be long, painful and destructive.''

guest commentary.