Aug 27 2012
Zero effective policy and stalling QE3 – Why QE3 will have little financial impact if implemented. Deposits at US commercial banks quickly approaches $9 trillion.
The markets eagerly await the words of central bankers over the next few days. The markets are on the fence waiting to see if Ben Bernanke gives the green light for QE3. What many fail to realize is the Fed already has other mechanisms to force banks to lend in the current marketplace. First, there […]
Sep 23 2011
The coming failure of Operation Twist – The Federal Reserve resurrects a program from the 1960s named after the Twist Dance. Appropriate timing for a Dancing with the Stars nation.
The Federal Reserve has literally run out of ideas. Operation Twist, a throwback to the 1961 action taken by the Fed named after the Twist Dance fad at the time, is now back in 2011. This time the Fed plans to purchase $400 billion of bonds with 6 to 30 year maturities while selling bonds […]