Archive | Federal Reserve

Why do we survey economists’ opinions when the majority are wrong?

When it comes to the question of when (and if) the Federal Reserve will raise interest rates, we’re not really sure why the media continues to report on “what economists think“.   It’s clear to anyone who is paying attention that economists are not good at making predictions, and that the consensus of economists has been consistently wrong after […]

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Oops! Philly Fed Admits QE widens inequality

Once again, the Federal Reserve proves that it’s the last one to know everything that we knew already.   Today’s stunning announcement:  The Philadelphia Fed admits they (“may have”) made the wealthy wealthier and Main Street poorer. Oops.  Sorry America. The Philly Fed insists that “redistributing wealth” to the wealthy isn’t the main idea, but just a potential side […]

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Fed just said it will raise rates when economy of the WORLD improves.

The greatest disconnect in the world today must be the vast chasm between what the Federal Reserve “thinks we think” and what the rest of us “actually think”. What the Fed “thinks we think” is that there’s some significant possibility that they will raise rates sometime soon. What we “actually think” is that any meaningful hike in rates will instantly […]

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Never go full retard: Bloomberg calls for “helicopter money”

Clive Crook, a member of Bloomberg View’s editorial board, has gone where the sensible have long feared to tread.  In today’s Bloomberg View, he recommends stimulating the economy by just giving everyone free money. Crook also may have set a Bloomberg View record for getting everything so wrong, so quickly.   By his third sentence Clive is clearly lost. […]

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Stanley Fischer’s statement of the obvious: “Bankers should be punished for financial crimes”

Federal Reserve vice chairman Stanley Fischer’s speech yesterday met with disbelief and snickers when he announced that those who commit financial crimes should “suffer”. So where was Mr. Fischer back before the statute of limitations on the largest crimes ran out? Of course, we know. He was busily destroying the US economy with a deadly cocktail of unproven, fringe economic […]

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Will there be an epic (final) US Dollar rally?

When large ships first begin sinking, they tend to sink evenly.  The lowest part of the hull, or bilge,  fills with water increasing the weight of the ship and pulling the entire ship down evenly.  Then as the water-level reaches successively higher decks, the rushing water often causes an increase in weight towards the bow or the stern. The increased weight […]

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Central banks speculating in equity-markets: What could possibly go wrong?

Yesterday, in Congressional testimony Janet Yellen apparnetly felt it was within her mandate as Chair of the Federal Reserve to slap a “sell rating” on social media stocks and bio-techs. The smack-down of two sectors certainly raised eyebrows. Why?  Because it was one more disturbing sign of increasing Federal Reserve involvement in equity markets.  The big question […]

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Must Watch: Warren destroys Yellen’s position on “Too Big to Fail”.

This dialogue hasn’t received nearly as much attention as it deserves. As we predicted this morning, Warren would grill Yellen over TBTF.  And Yellen would do little more than say the Fed is “looking into it”. Sure enough, Yellen repeatedly attempted to deflect the issue.  Warren was having none of it. This single clip summarizes the entire […]

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Did Janet Yellen just step out-of-bounds?

A strange thing happened during today’s Federal Reserve testimony in front of Congress:  Janet Yellen told the world that she felt a particular sector on the equity markets was overvalued.  More specifically:  Janet Yellen decided it was in the Federal Reserve’s authority to knock some of the wind out of social media and biotech stocks.  We’ve re-read […]

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Please help us raise funds to visit Paul Krugman’s home planet.

We’re asking for your support to help crowd-fund a purpose-built spacecraft. We haven’t gotten around to making a page on StartJoin yet, but it’s coming. Why, you ask?   Because after reading Paul Krugman’s editorial defending Fed policies last week, we have become intensely interested in visiting his planet. So if you’re ready to hear our “pitch”, please sit […]

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NotQuant’s response to Mish’s Response to NotQuant

Yesterday, we read Mike Shedlock’s response to our piece Is the Fed Going to Initiate A Controlled Collapse with interest. He called our piece “complete silliness” and then attempted to deconstruct our logic with this silliness: Mish wrote: Does the Fed know the difference between an asset bubble and my mom’s tuna casserole? Does the Fed know the […]

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What would mainstream economists have advised Bernie Madoff to do?

Just over two weeks ago, Bernie Madoff’s accountant finally plead guilty to fraud after six years of defending himself. He was sentenced to 30 years in prison at the age of 78. While he admits to falsifying records, to this day he claims he had no idea that Madoff was running a ponzi scheme. The prosecution has called […]

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Is the Fed going to attempt a controlled collapse?

As most Fed watchers know, last week was interesting because Janet Yellen, speaking at IMF came out and said something quite surprising.  In a nutshell, she said “It’s not the Fed’s job to pop bubbles”.   While many market participants immediately took this to mean, “To the moon, Alice!” and started buying equities hand over fist, there’s […]

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Did the “central banks’ central bank” just call for a stock-market collapse?

Don’t look now, but the Bank for International Settlements (BIS), which is often referred to as the “central banks’ central bank”, just advised the world’s central banks to stage a market collapse now rather than later. For anyone claiming that the many global critics of central banks are a “bunch of doomers”, that argument has now been […]

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