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Treasury bond bulls as far back as memory goes, Hoisington and Hunt remain so, explaining how...

Treasury bond bulls as far back as memory goes, Hoisington and Hunt remain so, explaining how Federal Reserve actions serve to slow economic activity. Rising CPI during QEs I and II "had a devastating effect on workers' incomes," they write. Bernanke's wealth effect is a myth, they say, with zero benefit for those with incomes less than $130K, and negligible help for those over. As always, a great read.
Comments (6)
  • Tack
    , contributor
    Comments (13037) | Send Message
     
    The only question one might raise is that since we've had nonstop increases in retail sales, auto sales and even home sales, who's buying all this stuff, if nobody has benefited?
    23 Oct 2012, 01:04 PM Reply Like
  • Ohrama
    , contributor
    Comments (509) | Send Message
     
    Perhaps no down payment etc. are back again. And old habits never die that fast. Withdrawal syndrome (from not buying things for awhile) too I suppose. And add the Fed induced fake gain to stock market (unless you happened to be an old man at the right age and cashed out, most have just paper gain that can vanish as fast as it came).
    23 Oct 2012, 04:52 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Stunted income growth and rising costs - stagflation. The Fed's collateral damage in its real goal to put a bid under risk assets used as collateral.
    23 Oct 2012, 01:12 PM Reply Like
  • freigog
    , contributor
    Comments (3) | Send Message
     
    Amen....may they rot in hell in a special place reserved for economic sociopaths.
    23 Oct 2012, 03:20 PM Reply Like
  • into dark shadows
    , contributor
    Comments (327) | Send Message
     
    Bernanke and his Bubble Blowin QE Stun Gun have destroyed the middle class!
    When Romney wins in a landslide and gets rid of the corruption at the Treasury, Tax Cheat Timmy should be indicted, the next move is to bring some sanity back to our once free market system and REMOVE Bernanke!

     

    The pain will be real, but we need to face it and then move on.
    This QE perdition has only served the Wall Street Money Changers at the expense of every working man / woman who played by the rules, saved all their lives and lived within their means.
    You could add those who actually sacrificed their wants now for the comfort of an easy life in retirement, they have been royally screwed with this abortion called Fed Policy!

     

    Tell me Ben, how the frack is someone aged 70 plus and depending on some interest income for their daily needs going to accept the level of risk you have forced on them?
    They can't!

     

    Bernanke, as well as Greenspan are epic FAILURES and deserve the scorn of an ungrateful country!
    A pox on both your houses!

     

    God save the Republic!
    23 Oct 2012, 01:13 PM Reply Like
  • fred1724
    , contributor
    Comments (64) | Send Message
     
    Absolutely on the money. Disastrous failures. And we all will suffer more o come with inflation( which is not the current gov't lies).
    23 Oct 2012, 03:24 PM Reply Like
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