POLL: "I'm Sorry America" - Andrew Huszar

Former Federal Reserve official, Andrew Huszar, has been making the rounds this week apologizing to America for his part in QE. See his article on WSJ.com here. Below is his opening statement.

"I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time."

I found the article both interesting and scary and it made me think...

Did The Federal Reserve Do The Right Thing?

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Please take a moment to cast your vote and to share your thoughts on the article and the Fed.

Every Success,
Jeremy Lutz

Deflationary Forces Stymie the Fed's Economic Rescue Efforts

By Elliott Wave International

The Federal Reserve's efforts to rescue the economy have been historically aggressive, starting with the initial round of quantitative easing in 2008 and continuing through 2013.

The central bank's assets have skyrocketed due to the Fed's bond purchases, which you can see clearly in this eye-opening report that Robert Prechter presented to the Market Technicians Association and his Elliott Wave Theorist subscribers.

Editor’s Note: Visit Elliott Wave International to download the rest of the 8-page, free report, How to Protect Your Money When the U.S. Debt Bill Comes Due.

Continue reading "Deflationary Forces Stymie the Fed's Economic Rescue Efforts"

Should Janet Yellen Be The Next Federal Reserve Chief?

The challenges for Janet Yellen if she becomes the next Federal Reserve chair will require both the steely intellect and the personable style that many attribute to her.

Deciding when to slow the Fed's economic stimulus. Forging consensus from a fractious policy committee. Calculating the effects of any economic slowdown from Washington's budget fight. Facing volatile financial markets. Absorbing new members at the Fed.

First, though, Yellen will have to get there: She'll need to overcome Washington's toxic political environment and win confirmation from the Senate.

It's almost enough to make you wonder why she'd want the job, but a better question is....

Should Janet Yellen be the next Federal Reserve chief?

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Yellen is widely seen as a "dove" on Fed policy: She stresses the need to use the Fed's tools to boost growth and reduce unemployment in the sluggish aftermath of the Great Recession, rather than worry about igniting future inflation. Continue reading "Should Janet Yellen Be The Next Federal Reserve Chief?"

Macro Markets Shrug Off Policy Makers, Ready for a Pivot

Once again we present the Treasury 'TICs' data for China and Japan, most recently available through June.  It can be argued that these two countries are the T bond market, when considering the volume in which they deal and their strategic status as heretofore T bond consumers.


And now our long-running and most important macro chart, the 'Continuum' in long-term T bond yields; a monthly view of the 30 year yield and its 'limiter' AKA the 100 month exponential moving average (red line). Continue reading "Macro Markets Shrug Off Policy Makers, Ready for a Pivot"

FOMC Minutes… Head for the Hills!!!

While the MSM instigates reasons why we should give a damn about what people who have little control over the T bond market were thinking at the last meeting, why don’t we just tune it all out and manage the markets instead?

tyx, etc

The top panel shows the 30 year yield marching toward the traditional limiter AKA the 100 month EMA.  The pattern measures to 4.5% or so, so there could be a spike above and a hell of a lot of hysteria at some point.  That’s the collective markets; 98% hype, hysterics and emotion and 2% rational management.  Either the 30 year yield is going to do something it has not done in decades (break and hold above the EMA 100) or it is not.  Simple. Continue reading "FOMC Minutes… Head for the Hills!!!"