Posts filed under “Federal Reserve”

Fed “Stress Test” Results

Zion’s Bank — really?

Fed “Stress Test” Results

Source: WSJ

Category: Credit, Digital Media, Federal Reserve

Kocherlakota’s Dissent

Statement on Kocherlakota Vote at March 19, 2014, Meeting of the Federal Open Market Committee Narayana Kocherlakota – President FOMC March 21, 2014     Note* I view the March 19 Federal Open Market Committee (FOMC) statement as an unusually significant one. In that statement, the FOMC adopted new forward guidance about the evolution of…Read More

Category: Federal Reserve, Think Tank

The Fed and Hyperinflation

“It is after a trend has been reversed that the full effect of the preceding excesses is felt.” -George Soros For the last 5+ years we have seen a massive attempt by global central banks to prop up asset prices. The Federal Reserve has spearheaded the effort, increasing their balance sheet from less than $1…Read More

Category: Economy, Federal Reserve, Inflation, Markets

The Counter-Factual & the Fed’s QE

    “The weak recovery is proof that the Federal Reserve’s program of quantitative easement does not work.”   You do not understand the Counter-Factual. That is the only conclusion I can draw from what the very common criticism of the Federal Reserve policies of ZIRP and QE (above), and its inherent analytical error. The…Read More

Category: Federal Reserve, Philosophy

Yellen on Fed’s Stimulus Campaign

Janet L. Yellen, the Federal Reserve chairwoman, spoke at a news conference after the Fed announced it would reduce its monthly bond purchases because of the economic recovery’s progress.

 

click for video
yellen
NYT, March 19th, 2014

Category: Federal Reserve, Video

If They Will Lend, Someone Will Spend (on Something)

If They Will Lend, Someone Will Spend (on Something) Paul Kasriel March 17, 2014     Upon awakening from my winter hibernation way up here in beautiful northeastern Wisconsin, I have noticed that bank asset managers have been anything but hibernating. Rather, they have been quite busy expanding their loans and securities. As shown in…Read More

Category: Credit, Federal Reserve, Think Tank

Private Credit and Public Debt in Financial Crises

Private Credit and Public Debt in Financial Crises Òscar Jordà, Moritz Schularick, and Alan M. Taylor FRBSF Economic Letter 2014-07 March 10, 2014     Recovery from a recession triggered by a financial crisis is greatly influenced by the government’s fiscal position. A financial crisis puts considerable stress on the government’s budget, sometimes triggering attacks…Read More

Category: Bailouts, Credit, Federal Reserve, Think Tank

How Unconventional Are Large-Scale Asset Purchases?

How Unconventional Are Large-Scale Asset Purchases? Carlo Rosa and Andrea Tambalotti Liberty Street Economics, March 03, 2014     The large-scale asset purchases (LSAPs) undertaken by the Fed starting in late November 2008 are widely considered to be a form of “unconventional” monetary policy. Although these interventions are certainly unprecedented, this post shows that their…Read More

Category: Bailouts, Federal Reserve, Think Tank

Fed Laughter and Housing Prices

Source: Elliot-today     Earlier this week, we discussed the amount of laughter in FOMC meetings as a sign that the Fed was not fully cognizant of the coming financial storm. Today’s chart adds another component to this, overlaying Fed laughs with Case Shiller residential real estate price index, via Elliot-today. Perhaps the best way…Read More

Category: Federal Reserve, Real Estate, Research

Does the Federal Reserve Staff Still Beat Private Forecasters?

Category: Federal Reserve, Fixed Income/Interest Rates, Really, really bad calls, Think Tank