Ease on. That’s the message that Fed Chairman Ben Bernanke delivered this week, causing the bond market to rally, the stock market to hit new highs and the seas to…
Bad News Is Good News
Good news. The economy still stinks. In today’s economy, which is driven by The Federal Reserve Board’s quantitative easing (QE) program, bad news is good news and good news is…
Market Reaction To Comments Reflects Market Efficiency
It’s worth keeping the efficient market hypothesis in mind when considering the impact of Fed Chairman Ben Bernanke’s announcement this week that bond buying will be coming to an end.…
The Second Housing Bubble
“Demand is artificially high … and supply is artificially low.” …
90,000,000 Americans Have Stopped Working
When the unemployment rate declines, even by a little bit, it should be good news. But when it declines because people are leaving the workforce in record numbers, it’s not.…
Ben, the Great and Powerful
“Bernanke said, in essence, that he wasn’t a magician.” …
Follow The Fed At Your Own Risk
If you think Fed Chairman Ben Bernanke has a firm grasp of the economy, you may change your mind after listening to Bain Capital co-founder Coleman Andrews quoting Chairman Bernanke…
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…
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…