Having already skewered Fed policy by taking it to the next absurd stage, Sheila Bair warns the...

Having 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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Comments (22)
  • bbro
    , contributor
    Comments (11237) | Send Message
    Ben Bernanhe saved our economy. This statement belies the ignorance of Sheila Bair.


    "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???
    23 Apr 2012, 07:39 PM Reply Like
  • The_Hammer
    , contributor
    Comments (5114) | Send Message
    Ben is that you?
    23 Apr 2012, 09:22 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
    No, it's not Ben, just one of his many mouthpieces/apologists.
    24 Apr 2012, 05:20 AM Reply Like
  • American in Paris
    , contributor
    Comments (5495) | Send Message
    Rubbish. Bernanke saved the global economy in 2008 and 2009. It's indisputable.
    24 Apr 2012, 08:00 AM Reply Like
  • The_Hammer
    , contributor
    Comments (5114) | Send Message
    I will be hunting both you and Bro down when the dollar/bond crisis come to the USA reminding you of your foolish comments
    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.
    25 Apr 2012, 09:00 AM Reply Like
  • The_Hammer
    , contributor
    Comments (5114) | Send Message


    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.
    25 Apr 2012, 12:39 PM Reply Like
  • drekon
    , contributor
    Comments (193) | Send Message
    I fail to understand how artificially low rates help the housing market with banks that won't lend and 17 million unemployed. It hurts those unemployed by inflating food and fuel, while it destroys the responsible savers' spending ability. This administration is clueless.
    23 Apr 2012, 07:43 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
    You can only understand it if you live in the alternate universe Bernanke inhabits.
    24 Apr 2012, 05:21 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9903) | Send Message
    At least Sheila is on the right track and the right general direction, which Uncle Ben clearly is not.
    23 Apr 2012, 08:02 PM Reply Like
  • Jolly_Rancher
    , contributor
    Comments (631) | Send Message
    The Fed sees how much of those trillions of bank reserves it created is being lent out, so it knows when to expect inflation. Those loans can be balanced with weakness in the EU and possibly China.
    23 Apr 2012, 08:48 PM Reply Like
  • Econdoc
    , contributor
    Comments (2938) | Send Message
    Who's Sheila Bair?


    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.


    23 Apr 2012, 08:48 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4297) | Send Message
    Market? We don't want no stinking market.
    23 Apr 2012, 08:57 PM Reply Like
  • rjj1960
    , contributor
    Comments (1479) | Send Message
    What amazes me is how Alan Greenspan escaped untouched in all this. Sickening.....
    23 Apr 2012, 09:13 PM Reply Like
  • SoldHigh
    , contributor
    Comments (991) | Send Message
    Frank & Dodd are even worse- thank them for the endless FRE/FNM losses that continue...
    23 Apr 2012, 11:32 PM Reply Like
  • Dr. V
    , contributor
    Comments (1168) | Send Message
    Not to mention, that neither (Dodd / Frank) have a financial clue either.


    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.
    24 Apr 2012, 03:37 AM Reply Like
  • bbro
    , contributor
    Comments (11237) | Send Message
    Bair is a lawyer too....
    24 Apr 2012, 04:43 AM Reply Like
  • Spencer Knight
    , contributor
    Comments (389) | Send Message
    Lawyers are taught to argue. They argue their argument to the death, even if that means not having the proper background. I used to have a roommate who wants to be a lawyer. He is an intelligent kid, but he is like most lawyers. He and these other lawyers have skewed visions of the economy and they don't shy away from arguing that they are correct. It is difficult to get through to them that they are wrong even with facts and evidence.


    Unfortunately lawyers run this country.
    24 Apr 2012, 05:03 AM Reply Like
  • srspa77
    , contributor
    Comments (325) | Send Message
    Helicopter Ben is a genius. Don't you know that?
    24 Apr 2012, 12:58 AM Reply Like
  • change is the only constant
    , contributor
    Comments (2265) | Send Message
    Two years before the housing crisis FDIC Chair Bair correctly predicted the sub-prime et al loans would destroy bank balance sheets. The off-balance sheet crap would fold. And her agency would bear a huge brunt of cleaning it up. She came out of left field with this prediction.


    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?
    24 Apr 2012, 07:37 AM Reply Like
  • boblogan
    , contributor
    Comments (2) | Send Message
    I'm buying up TBT by the boat load. It's a double inverse 20 year treasury fund. Whenever rates start to increase, there will be a mad rush to the door, and hopefully a mad rush of money racing into my account : )
    24 Apr 2012, 08:03 AM Reply Like
  • Lee Hoffman
    , contributor
    Comments (385) | Send Message
    She's partially right. What we don't know is how much paper the fed is buying to keep and maintain a low interest rate environment. Clearly, much US Treasury purchasing is caused by fear in other markets. To the extent that consumers know that low rates are here forever, the less inclined they are to trigger a capital purchase especially a home. A deflationary mentality. Between increased pressure on banks (Dodd / Frank) and safe havens like treasury's and zero interest at the overnight window, there's not much motivation for banks to lend. This may be the law of unintended consequences for eased monetary policy. I do not believe Bernanke thought the banks would just sit on the dough, but neither did he foresee the assault on bank reserves when they lend. Unfortunately, Dodd Frank did nothing to deal with the real problem of Credit Default Swaps which are unregulated insurance schemes.
    24 Apr 2012, 08:20 AM Reply Like
  • Dr. V
    , contributor
    Comments (1168) | Send Message
    To find out what is buried, start with the recent GAO Audit of the FED that exposed 16 Trillion in loans. See pg. 130-131.


    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






    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."




    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.
    25 Apr 2012, 07:34 AM Reply Like
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