Seeking Alpha

After the Boston Fed's Rosengren's call for aggressive QE, out trots the Dallas Fed's Fischer to...

After the Boston Fed's Rosengren's call for aggressive QE, out trots the Dallas Fed's Fischer to proclaim the central bank has "done (its) job." Unworried about inflation, he still does not see the need to print more money. The Fed needs to avoid the impression it can solve all of our problems, he argues.
Comments (9)
  • Gary Jakacky
    , contributor
    Comments (2522) | Send Message
     
    "The Fed needs to avoid the impression it can solve all of our problems, he argues."

     

    How about properly conveying the impression that it can't solve ANY OF THEM?
    8 Aug 2012, 10:11 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9950) | Send Message
     
    At least Fischer is on the right track anyway. Rosengren needs to get out there and get a real job and get paid based on his actual performance of producing something real.
    8 Aug 2012, 10:13 AM Reply Like
  • cash
    , contributor
    Comments (464) | Send Message
     
    well, why do that - that is hard, when I can just collect a fat pay check pushing files around and sucking up to boss.
    8 Aug 2012, 03:53 PM Reply Like
  • Greenspanblows
    , contributor
    Comments (148) | Send Message
     
    Yes, I agree the Fed has done it's job. Greenspan presided over the most corrupt Federal Reserve in history. In twenty years he managed to grow the disparity between the wealthy and the other 99% to all time highs. He watched as tech stocks inflated and did nothing, he advised the average consumer to take the equity out of their homes as real estate prices were peaking. He ignored warnings from the CFTC about the dangers of OTC derivatives. They ignored complaints (the SEC as well) about Bernie Madoff for over a decade. They have completely messed up the finances of the United States which will most likely lead to a revamped version of capitalism before this is all said and done.

     

    And now we have the Bernanke put which is rewarding extreme risk taking. Yes, thank you Federal Reserve for destroying the "American Dream" and making sure that my children will not be able to enjoy what once was a great country. Pay yourselves another million dollars, you deserve it!
    8 Aug 2012, 10:48 AM Reply Like
  • Davidesand
    , contributor
    Comments (21) | Send Message
     
    To ascribe the shrinking middle class and a growing disparity between what you might call the rich and the poor to the actions of the Federal Reserve is flawed thinking. It is not the duty of the Fed to monitor sectors of the stock market to determine if any sector may be hyper-inflated. The economic adjustment was due in most part to various congressional leaders pushing the idea that everyone deserves to own their home without regard to the credit worthiness of those people. Freddie Mac and Fannie Mae did what they were instructed to do.

     

    The second driver is the fact that government grew at an outrageous rate. You may not be aware, but a dollar spent by government only turns 3 times, while a dollar spent by the private sector turns 7. Shifting the economy to a larger government kills productive growth.

     

    Last but not least is the multi-decade of the baby boomer effect. Unlike their parents who saved and purchased with cash, the boomers were an entire generation of debt accumulation to acquire everything "right now" that they wanted. So downturns were multiplied by this.

     

    You mention capitalism. We haven't had it for years. With the ever growing socialistic government, we have squeezed capitalism to death. We seek to punish the successful and reward the non-producers. You really ought to read Atlas Shrugged.
    8 Aug 2012, 01:10 PM Reply Like
  • Greenspanblows
    , contributor
    Comments (148) | Send Message
     
    David,

     

    You make some great points and I happen to agree with almost all of them. It is hard to hold someone accountable for what has happen which is most likely why no one has gone to prison. I pinpoint Greenspan because he has been involved in one fashion or another (economic advisor to presidents, chairman of Fed) for the last 40 years. If anyone could have prevented this disaster it would have been him. To make matters worse he has added fuel to the fire for most of his years in public service.

     

    It is hard to imagine that such a brilliant person can make such stupid decisions even considering his large ego without some sort of hidden agenda. When in doubt, follow the money. How many millions did Frederick Raines make as CEO of Freddie Mac. You mean to tell me that they had no clue that their 1000x1 leverage was a problem and that they were instructed to do so. Sorry but I don't buy it, Raines' sole motivation was to move the stock price as high as possible so he could get his $50 million worth of bonuses for the short tenure he had.

     

    One day, the American citizen will no longer be distracted by football, the Kardashians, and Jersey Shore (not sure why I put football in the same category of the latter, ok, maybe not football) and wake up to reality. The wealthy (elite) are sucking the life out of the middle class and make no mistake, this is their intent. The entire system is skewed in their favor and the level of graft and corruption is much worse than anyone realizes.
    8 Aug 2012, 01:39 PM Reply Like
  • Hendershott
    , contributor
    Comments (1558) | Send Message
     
    Atlas Shrugged was a sophomoric work of fiction that described a world that doesn't exist, never did, never will. Unfortunately the loony right has been convinced that the book is biblical and taken Rand's assertion that the only useful motivation is financial gain. Combined with the mistaken assertion from the Chicago economists that people always act in their own financial interest and we have the "theology" of the GOP. The GOP has allowed themselves to be manipulated into legislating the demise of the middle class and the destruction of the federal budget all to benefit a very few financial elite, largely through the tax code. Atlas Shrugged was bad science fiction and John Galt was a flat fictional character about on par with L. Ron Hubbard's work.
    8 Aug 2012, 05:14 PM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    The central bank has done its job, and will continue to do its job, of enriching the bankers by giving them 0% loans to do as they please.

     

    Why shouldn't every citizen be able to borrow money at the same rate?
    8 Aug 2012, 11:42 AM Reply Like
  • davidshelton
    , contributor
    Comments (315) | Send Message
     
    The Fed has done it's job of monetizing debt, creating false demand until there was real demand again, lowering the cost of service of said debt(rates!) and creating free money for all the moral hazards out there. It was never about job creation or "stimulus" of the economy IMHO. The economy was in better shape in 2010 than now and yet we still had QE2 but treasuries were a lot cheaper then...... just saying.
    8 Aug 2012, 03:58 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector