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Having already skewered Fed policy by taking it to the next absurd stage, Sheila Bair warns the...
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Monday, April 23, 2012, 7:25 PM ETHaving already skewered Fed policy by taking it to the next absurd stage, Sheila Bair warns the gang that never saw the housing bubble that they've created a bond bubble. If the market wants to push rates up a bit, she says, the Fed ought to let it. The economy may even benefit as those on the housing sidelines see rates headed north and move into the market.
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This news story has 22 comments:
"If the market wants to push rates up a bit, she says, the Fed ought to let it. " Look at corporate rates they are market driven....how is the Fed holding down Baa rates or for that matter 6 month commercial paper...why is it the financial media or government hacks like Sheila Bair doesn't understand the demand side of the equation???
I am starting to get slightly BULLISH on europe. WHY?
Becasue they are at least trying to address the problems somewhat. USA, a bunch of corrupt elite banksters control the printing presses kicking the can.
Rob Arnott a respected insitutional manager says using 1980 methods to calulate cpi would increase it 2-4% today. Therefore inflation is running 5%.
Scamming Fed and the Bernank.
Idiot Liesman talking about no QE. BS we have QE right now and it is called operation Twist Scheme.
Leave it to the FEd to come up with another Propanganda name calling money printing in the near future to Fool the sheeple and global investors...or at least try to fool a few of the last remaining fools.
Seriously she is a nobody and nobody cares or listens to what she has to say. Thank God for that.
And thank God for Bernanke. The Master.
E
Both are Lawyers, never studied Finance or Econ. Public Policy is a good start, when COMBINED with Law, Finance, Economics.
Again, the unqualified lend their "pseudo expertise" to USG.
Unfortunately lawyers run this country.
She is (now) saying (Fed easy) money feeding back into bonds will cause a collapse of the bond market.
So what? Its the same thing the ECB is doing with LTRO. If she does not have logic on her side (if not a consensus opinion) why are the EZ rates so wobbly?
Deutsche Bank alone into the FED for $354 BILLION USD, tell me who will be calling the shots in the EU soon, as Germany currently playing the role of the heavyweight, will themselves now have a new boss: the FED.
All things being equal, (Germany > EU),.....is equal to... (FED > Germany),...... therefore (FED > EU), unless they can cough up the dough. Personally, I would leave it as it is. I like the idea of FED breaking Germany's "overly defiant" will, and getting the EU back on track. The austerity measures are crippling the EU, as Germany profits.
See today's WSJ European Edition
http://on.wsj.com/K2XkHd
and
http://on.wsj.com/ItWsyd
WSJ says:
"Germany's central-bank chief, rejected calls for the European Central Bank to back off from its push for fiscal austerity, batting down mounting concern that the strategy is causing deep economic pain and escalating political upheaval across Europe."
END
They (Germany) are an occupied country under treaty for a reason, and they should learn to act accordingly (for instance, being forced to follow the Maastricht Treaty themselves, before seeking to punish others), AND to resist the urge to constantly overstep their bounds within the EU, at the expense and suffering of the periphery. This will soon end with the recent news out of France regarding the upcoming elections, and the end of Franco-German cooperation on austerity.
Europe, will effectively, be owned outright by FED when they can't pay up. Most will fall in line, as it makes sense to do so, others who have enjoyed the "lion's share" until now, will walk away from the table with a bad taste in their mouths.