QE2 Archive

quick update

First, a few of today’s headlines to set the mood: China factory sector close to stalling – Flash PMI Europe Services, Manufacturing Weaken More Than Forecast France’s Manufacturing, Services Growth Slows More Than Forecast Trichet Says Risk Signals ‘Red’ as Crisis Threatens Banks Italian Household Confidence Falls Amid Concerns on Growth, Jobs ...Read More

Foreigners Make Run on US Housing Market

This is what happens when the Fed scares the heck out of global portfolio managers with otherwise benign QE2, and they deallocate dollar holdings to the point where the currency sells off enough to find real buyers of dollars who want them to buy cheap real assets like US real estate. That’s ...Read More

Bernanke Admits Economy Slowing; No Hint of New Stimulus

In fact, no one on the FOMC has called for QE3, so it’s highly unlikely with anything short of actual negative growth. So the question is, why the unamimous consensus? I’d say it varies from member to member, with each concerned for his own reason, for better or for worse. And I ...Read More


Fed’s QE2 Failed to Boost U.S. Spending, Pimco’s El-Erian Says: Tom Keene By John Detrixhe and Tom Keene June 2 (Bloomberg) — The Federal Reserve’s quantitative easing policy failed to meet the “ultimate objective” of boosting employment and economic growth, said Mohamed El-Erian , chief executive officer at Pacific Investment Management Co. ...Read More

QE and Real GDP

To which they respond ‘monetary policy works with a lag’ And to which I add, yes, it lags until the next fiscal adjustment kicks in. ;) >    >   But equities continue to peform relatively well. >    Yes, they should be ok with any positive top line growth. The risks that remain are a ...Read More

comments on inflation in China

When the western educated offspring do what they’ve been taught to fight inflation it can all go very wrong. Their main tool, whether they know it or not, directly or indirectly, is higher interest rates, which only directly makes the inflation worse through the cost channel and interest income channel, which further ...Read More

Wray article on QE

Wray: QE2 Two: Equivalent to Issuing Bills in the First Place ...Read More

QE question

>    >   (email exchange) >    >   On Wed, Nov 10, 2010 at 10:29 PM, Mark wrote: >    >   One more thing I dont get. You say there isn’t more money >   in the system, but there is more “cash”. For instance, If >   I have $10 in t-bonds before QE and you have $10 in cash >   and ...Read More

Consumer Borrowing Posts Rare Gain in September

This is how it all starts. The $10.1 billion gain in non revolving is the key. That, along with housing, is the borrowing to spend the drives consumer credit expansions. And the ongoing federal deficit spending continues to add to savings via less credit card debt that’s generally used for current consumption. ...Read More


Karim writes: Very solid number in many respects NFP +151k plus Net revisions +110k Private sector job gwth +159k Average hourly earnings +0.2% and index of aggregate hours +0.4% will combine with the jobs increase to produce a very strong personal income number for October Hours data will also show up in ...Read More