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Boston Fed chief Rosengren pops onto CNBC to repeat his call for a new large-scale, open-ended...

Boston Fed chief Rosengren pops onto CNBC to repeat his call for a new large-scale, open-ended QE program (he earlier told the WSJ the same). Again, Rosengren isn't a FOMC voter and his dovish views are to be expected, but he sits in camp with powerful members like Yellen and Dudley.
Comments (20)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    He did not sound like he knew what he was talking about...open ended..but then he says he wants to keep their balances down????
    Strange speech...and it was a speech..he had several talking points he had to make for some reason.....no politics at the Fed...yeah right..
    7 Aug 2012, 09:08 AM Reply Like
  • Tack
    , contributor
    Comments (12761) | Send Message
     
    Lunacy. Are we having a full moon?
    7 Aug 2012, 10:35 AM Reply Like
  • bearfund
    , contributor
    Comments (1534) | Send Message
     
    This makes no sense. If the Fed is concerned about monetary velocity, they should do the following:

     

    - Allow individuals to deposit up to $25,000 with their regional Fed branch.
    - Pay 500% interest on all individual deposits for one year.

     

    Instant velocity, guilt-free deleveraging, no debt hangover. If they're not considering this, they're not serious about velocity. And we all know they're not serious about velocity; the Fed's true priorities as reflected in their actions are ensuring bank profitability and funding the federal vote-buying deficit. Fed-watching has become completely pointless.
    7 Aug 2012, 10:51 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    bearfund,

     

    I check the M2 velocity stat every once in while. Right now, it hasn't been this low since just before 1960 when FRED started tracking it:

     

    http://bit.ly/yfiMV9

     

    Seems like all the QE's are creating the "liquidity" trap that Irving Fisher predicted. Deflation risks are growing despite the rising inflation in the price of food and energy unless this turns around.
    7 Aug 2012, 11:35 AM Reply Like
  • Tao Jaxx
    , contributor
    Comments (1274) | Send Message
     
    Right you are, but this escapes most "hyperinflation coming!" posters around here.
    Great profit opportunity.
    7 Aug 2012, 11:58 AM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    They are concerned about the debt and the need to inflate it away. The so called velocity of money is nonsense. The FED will need to step in and fund the large budget deficits out there.
    7 Aug 2012, 04:06 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    At this point they have no idea what they are doing.

     

    They figure that if they keep talking the market will continue to move higher. The only problem is that the market is pricing in this move and they have to deliver. So either the market falls on the news that the program is starting (buy the rumor, sell the news) or they do not deliver and the market falls.
    7 Aug 2012, 11:40 AM Reply Like
  • Tao Jaxx
    , contributor
    Comments (1274) | Send Message
     
    Agreed.
    7 Aug 2012, 11:58 AM Reply Like
  • anomaly1
    , contributor
    Comments (767) | Send Message
     
    Setting up for a correction... short 20% of portfolio so far (began today)
    7 Aug 2012, 12:46 PM Reply Like
  • kaa1016
    , contributor
    Comments (175) | Send Message
     
    These Fed guys are dangerous people. They use models that have no basis in the real world, give forecasts that never turn out to be right, yet they base their decisions on these same models and forecasts. Someone needs to explain to me why doing additional QE would have any impact on the economy when the problems facing the country are structural in nature and can't be fixing by pushing record low interest rates even lower or by trying to manipulate the stock market higher. They may succeed at pushing the market a little higher, but I have a feeling that this isn't going to end well.
    7 Aug 2012, 02:36 PM Reply Like
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    kaa,

     

    To a hammer everything looks like a nail :)
    7 Aug 2012, 02:58 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2000) | Send Message
     
    Massachusetts is perhaps the most 'liberal' state; and its Federal Reserve bank is no exception.
    7 Aug 2012, 03:16 PM Reply Like
  • jeffz
    , contributor
    Comments (158) | Send Message
     
    Good luck with the open-ended QE, when oil rises above $100, people will want their heads on a stick!
    7 Aug 2012, 03:27 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Open-ended QE means plow everything into gold.
    7 Aug 2012, 03:50 PM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    This is what I was just thinking about ... maybe some silver too.
    7 Aug 2012, 04:06 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    I would suspect equities spike up and then crash. Little or no earnings growth right now with weak economic growth makes the market look expensive.
    7 Aug 2012, 04:16 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    DU,
    Yes, earnings and revenues are continuing to weaken for many corporations. Would be surprising if that does not continue in Q3&Q4/12.
    7 Aug 2012, 04:34 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Frankengren is a true monster, with delusions that the printing press is a perpetual motion machine, and lacking skills to produce innovations that actually can boost real, tangible growth...
    7 Aug 2012, 04:34 PM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    Well, that kind of thing can create some jobs for people operating printing presses! The good news is that if Rosengren and a few others get that open ended QE done, the printing jobs will be permanent. Got a print job?
    7 Aug 2012, 05:33 PM Reply Like
  • CUTIGER75
    , contributor
    Comments (140) | Send Message
     
    Sounds like a little Federal Reserve manipulation coming from the White House. As mentioned above , open ended QE will lead to much higher pump prices which will lead to an even weaker economy. The politicos have no limit to how much they will damage working people to get their votes.
    8 Aug 2012, 03:17 AM Reply Like
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