How Concerned is Bernanke about his possible legacy?

I suspect the Chairman is seriously concerned about living out his life with his legacy, as told by the mainstream, going something like this: “Blindsided by an intense financial crisis, the Chairman, a champion of full employment and student of the Great Depression, did everything he could come up with to support ...Read More

Jimmy’s legacy

Had dinner with him way back. He plays to the crowd: Jim Rogers: Don’t See How US Can Ever Pay Off Debts By Deepanshu Bagchee May 25 (Bloomberg) — The U.S. doesn’t deserve a AA-plus credit rating, much less triple-A, commodity bull and noted investor Jim Rogers told CNBC on Monday. Rogers ...Read More

Bernanke comments/legacy

Headlines: Bernanke: Aware Of Dollar’s Special Role In Global Economy Bernanke: Best Fundamentals For Dollar Come From Strong Economy Bernanke: Must Act To Bring Down Long-Term Fiscal Deficits Bernanke: Well-Functioning Chinese Economy Good For US Economy ’nuff said?? ...Read More

‘Legacy of Debt’ Gives Fiscal Stimulus Bad Name: Caroline Baum

[Skip to the end] This article gives Baum a bad name. ‘Legacy of Debt’ Gives Fiscal Stimulus Bad Name: Caroline Baum Commentary by Caroline Baum June 5(Bloomberg) — By the time the U.S. government unveiled its Public Private Investment Partnership in March, the toxic loans and securities clogging bank balance sheets had ...Read More

The scrap heap of capitalism

Capitalism has always been characterized by a massive scrap heap of failures. Not to say the ‘winners’ don’t make it all worthwhile! ;) Why technology spending isn’t all its cracked up to be: Study By Javier E. David Oct 31 (CNBC) — Large companies often spend a good deal of money on ...Read More

Existing home sales

Recalls my suspicion of the Bernanke legacy- “just as the recovery was gaining traction he let mtg rates rise and cratered the housing market, etc.” Full size image Y/Y: Full size image Existing Home Sales Highlights Sales of existing homes have yet to recover from the Federal Reserve’s decision, way back last ...Read More

Fed–Williams uber dovish

Looks to me like there’s been more push back on rates due to risks to housing, perceived to be the most rate sensitive ‘engine of growth’. I don’t think this Fed wants its legacy to be ‘just when things got going after 5 years of hard work the let rates go up ...Read More

Michigan survey and a small rant

Funny how sentiment follows stocks… And how housing has gone flat all year is dismissed. Not to forget jobless claims are about people losing their jobs and not about anyone getting a job. Yes, claims have correlated to new jobs, but that’s a different matter. For example, ‘at the limit’, you could ...Read More

Obama Accepting Sequestration as Deficit Shrinks

President Barack Obama has stopped worrying and learned to live with sequestration. By Mark Deen May 27 (Bloomberg) — Gone are the cold February predictions of mass layoffs, family upheaval and the prospect of a new recession because of the automatic, across-the-board spending cuts. Cabinet secretaries no longer visit the White House ...Read More

Koo on reserves time bomb – 500% inflation

So much for yet another legacy. :( From Richard Koo’s latest report: But nightmare scenario awaits when private loan demand recovers. The problem is what happens when private loan demand recovers. Loan books could grow more than tenfold in the US and five fold in Japan and Europe if bank reserves remain ...Read More