The problem with kicking the can down the road is that sooner or later, the road ends. Evidence of this can be found in recent stock market performance. Quantitative easing…
Unemployment Drops … Just In Time for the Election!
The unemployment rate has finally dropped below 8% to 7.8%! Or has it? Really? The latest numbers are a head scratcher. The Bureau of Labor Statistics (that’s BLS, not BS)…
This Is Progress?
Economic growth for the second quarter of 2012 officially has been revised down to 1.25%, which is below the lowest previous estimate. In an effort to stimulate the economy, the…
Set Our Markets Free!
In the not-too-distant past, the stock market rewarded entrepreneurs who worked hard and had innovative ideas. Today, the market is driven primarily by two things: Monetary policy. The Federal Reserve…
The Truth about High-Frequency Trading
We’ve been critical before about high-frequency trading. While regulation sometimes makes matters worse, it’s encouraging that he U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing this…
Going For Broke
So The Fed is “all in.” QE3, the third round of quantitative easting, will continue until the unemployment rate drops to an acceptable level. The implication is that buying bonds…
Consumers Might Spend – If They Had Any Money
Bond buying will pump money into the economy and reduce long-term interest rates, which are already at historic lows. Theoretically, this will give consumers a greater incentive to spend their…
When a Lower Unemployment Rate Is Bad News
Want to reduce the unemployment rate? Stop looking for a job. More than 300,000 workers dropped out of the labor force in August, while employers added just 96,000 positions. In…
The Other QE
It’s not QE3, the Fed’s highly anticipated and much discussed quantitative easing program, but the European Central Bank’s (ECB) bond buying program is having a similar impact. Stock markets worldwide…
Bernanke’s “On the Other Hand” Speech
To the disappointment of many on Wall Street, and to the relief of many in the real world, the Federal Reserve Board did not announce a third quantitative easing program…