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…
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…
The Fed and Facebook
On the surface, The Federal Reserve Board and Facebook have nothing in common. But media speculation about Fed action is very similar to the speculation that preceded Facebook’s IPO. For…
Is Everybody Happy?
Forget about growth in GDP, the unemployment rate, inflation, stock prices and all things relevant to money. Federal reserve Chairman Ben Bernanke suggested this week that happiness should be used…
Dog Days Not So Slow
Another near-miss “flash crash,” more European craziness, buzz about more action from The Federal Reserve Board and a stock market that rises along with the unemployment rate … who says…
Over Fed
To QE3 or not to QE3? That is the question the Federal Reserve Board has been pondering for months … or at least Fed observers think it’s being pondered. But,…
Dancing With A Cow
While Europe’s sovereign debt crisis has beaten down the U.S. stock market, it has helped the bond market. Because the European bond market is in such poor shape, U.S. bonds…
An Anorexic Recovery
If we could put the recovery of the past few years on a scale, it would be the thinnest in history. Recently, though, it has become downright anorexic. Goldman Sachs…
A Step in the Right Direction?
An unemployment rate above 8% is no longer news – it’s been above 8% for 41 months, which is the longest streak since the Great Depression. However, during the Clinton…