Tuesday, August 14, 2012

What I Read About the Fed in the Boston Globe

I don't know which is more insane, Fed policy or my continued reading of the Boston Globe.

"Sentiment grows for further Fed stimulus" July 25, 2012

WASHINGTON — A growing number of Federal Reserve officials have concluded that the central bank needs to expand its stimulus campaign unless the nation’s economy soon shows signs of improvement, including job growth.

The question is expected to dominate the agenda when the Fed’s policymaking committee meets next week, with some members pushing for immediate action while others seek to postpone a decision at least until the committee’s next meeting in September so they can see a few more weeks of economic data.

Fed chairman Ben S. Bernanke told Congress last week that the options under consideration include a new round of asset purchases, or ‘‘quantitative easing,’’ often described as QE3. 

Okay, if it didn't work the first time, and didn't work the second time.... insanity expects a different result.

As part of any such program, officials increasingly favor expanding the Fed’s holdings of mortgage-backed securities for the first time since 2010.


Bernanke and other Fed officials are convinced that such a step would further drive down long-term interest rates and improve economic growth, but they are concerned that the benefits would be modest while the costs are uncertain....

I'm so sick of being spun s*** by the banker's mouthpiece.


Yeah, that's them.

"What that action might be isn’t clear. The Fed has already pursued two rounds of purchases of Treasury bonds and mortgage-backed securities to cut long-term interest rates and encourage borrowing and spending. These programs are called quantitative easing.

The Fed has also extended a program called Operation Twist. Under this program, the Fed sells short-term Treasurys and buys longer-term Treasurys....  

I'm beginning to realize this whole economy is built on nothing more than a paper tiger of a currency being moved around by private central bankers. It's a complete fraud.

Even if the Fed did act, few think that further lowering long-term rates would provide much benefit to the US economy.  

But, you know, who cares? Fed just has to put out the illusion of imagery that they are doing something and the stock market spin machine will take over. 

Most businesses and consumers who aren’t borrowing now aren’t likely to change their minds if rates slipped a bit more.... 

They wouldn't give me the loan anyway, and rates can't go down much further. Already near zero.  

Oh, yeah, another thing: WE HAVE NO MONEY ANYMORE because the MONEY JUNKIES have STOLEN IT ALL!! Minor point.


Related: US growth slows, Federal Reserve says, but no further stimulus yet

Economists: Fed action will have minor impact

Also see: After crisis, firms propped up money market funds, report says

Just fooling with the money in the colossal fraud we call an economy.

Time for some front-page Fed promotion:

"Boston Fed chief embraces advocacy role; Rosengren a frequent voice for strong action" by Beth Healy  |  Globe Staff, August 09, 2012

Eric Rosengren has spent his entire career at the Boston Fed, joining in 1985 after receiving his Ph.D. in economics, and notably spent time researching New England’s real estate bust of the 1980s and Japan’s 1990s banking crisis. He oversaw regulation and the flow of money to the Fed banks before the local board named him president, a $350,400-a-year post. Last summer he was appointed to a second five-year term....

His tenure as Boston Fed president has so far been defined by the financial crisis. He came to the post when the economy’s problems were gathering steam. The subprime mortgage disaster was starting to rear its head; two Bear Stearns hedge funds that invested in risky mortgage securities failed. Within months, Rosengren was a lone wolf....

I agree; he is a terrorist.

Critics say Rosengren’s proposed “quantitative easing” — buying up Treasuries and mortgage-backed securities to free up cash at banks so they will lend more to consumers and businesses — won’t help the economy and could lead to inflation.  

Blah, blah, blah. 

Others sense that Bernanke doesn’t want to take any action, fearing it could influence the presidential election.

But Rosengren, along with his counterpart at the Chicago Fed, Charles Evans, argue that the country can tolerate a bit more inflation — as it’s still below the 2 percent target rate — especially if it means stimulating economic growth. Evans has been advocating a so-called 7/3 policy, suggesting it’s worth spurring growth to push unemployment below 7 percent, so long as inflation stays below 3 percent. 

Honestly, we have HAD ENOUGH of the BOOM and BUST CYCLES of the BANKER'S CAPITALISM, 'kay?!!!!!!?!!!!!!!!

To some people, Rosengren’s remarks this week were more scripted than radical, and perhaps not out of step with the message Bernanke has been sounding on the still-fragile economy....   

Then this whole disagreement thing is really just another s*** fooley, ain't it?


Look who else sits on the Boston Fed (or did):

Roger Berkowitz, chief executive of Legal Sea Foods and an independent director of the Boston Fed.

Richard Syron  

SEC Sounds Syron at Fannie and Freddie

'nough said?