Bonded Bernanke

By Econ70 | 12/18/2013
A man in a suit and glasses is holding his hands up

By perfectly calibrating his message, this time, Bernanke was able to taper yet see equities climb by 1.75% and bond prices barely budge. Quite a difference from this past May. By combining tapering with a commitment to keep short-term rates low into 2015, Bernanke has reduced uncertainty and compensated markets for the knowledge that QE…

Read More

Fed Head Fiasco

By Econ70 | 09/16/2013
A man standing at a podium with his hands raised.

The biggest loser in the current Fed Chairman Sweepstakes is the Fed. Simply considering Summers for the head Fed job politicizes a job that should be non-partisan. Arthur Burns, appointed by Nixon in 1970, was the last Chairman that was closely identified with one political party and he was a disaster. All evidence overwhelmingly shows…

Read More

Money for Nothing

By Econ70 | 01/11/2012
A black and white image of the words graphs and laughs.

The Federal Reserve transferred all $76.9 billion of its profit to the Treasury in ’11 down from the record $79.3 billion in ’10. The Fed is profitable because rather than borrowing money, it simply creates what it needs. Thus all interest earned, is profit. The $76.9 billion paid to the Treasury was 3.3% of all…

Read More