on 26 Jan 2012 10:21
on 02 Feb 2012 15:12
CNBC wrote:In what may be the strangest market indicator ever, a blogger found that the amount of laughter recorded in the official transcripts of Federal Reserve Open Market Committee meetings from 2000 to 2006 correlates almost perfectly with the rise in housing prices taking place at the time.
A particular series of side-splitting meetings by the central bank in 2006 marked the very top of the housing bubble.
CNBC wrote:...one of the more TV sitcom-like moments came during the Fed’s January 2006 meeting when then-Vice Chairman Tim Geithner said to the departing Greenspan during his last gathering:Tim Geithner wrote:“I’d like the record to show that I think you’re pretty terrific, too. [Laughter] And thinking in terms of probabilities, I think the risk that we decide in the future that you’re even better than we think is higher than the alternative.[Laughter] With that, the economy looks pretty good to us, perhaps a bit better than it did at the last meeting. With the near-term monetary policy path that’s now priced into the markets, we think the economy is likely to grow slightly above trend in ’06 and close to trend in ’07.”
But soon after that exchange, the laughter died.
CNBC wrote:That means the laughter count is probably pretty low in Fed meetings these days.
But we don’t know for sure because while the FOMC meeting minutes are released three weeks later, full transcripts of the meetings that record these moments of brevity are not released until five years later.
on 02 Feb 2012 15:44
Peter Schiff wrote:With its announcement this week that it will keep interest rates near zero until at least late 2014, the Federal Reserve has put another large crack into the foundations underlying the US dollar. In a misguided attempt to provide clarity and transparency, Ben Bernanke has instead laid out a simple road map for economists and investors to follow. The signposts are easily understood: the Fed will stop at nothing in pursuing its goals of creating phantom GDP growth, holding down unemployment, propping up stock and housing prices, and monetizing government debt. To do so, it will continue to pursue a policy of negative interest rates, while ignoring the collateral damage of unsustainable debt, virulent inflation, misallocated resources and credit, suffering yield-dependent retirees, and a devalued U.S. currency.
on 02 Feb 2012 18:53
on 01 Mar 2012 15:29
In remarks that hit Wall Street stock prices, the central bank boss suggested the economy could hit a serious roadblock if Congress allows the Bush tax rates and a payroll tax cut to expire and $1.2 trillion in spending cuts to be implemented simultaneously in January.
Bernanke warned that draining funds from the economy by allowing tax cuts to expire and trimming spending could slow growth.
on 27 Feb 2013 11:21
on 27 Feb 2013 12:35
on 27 Feb 2013 13:17
Lola wrote:OK guys I'm the first to admit that I"m not the sharpest tool in the shed.
Who gets the interest ? Like if we increase the interest rates on say mortgage loans - who keeps that interest? The government?
(sorry if this is a no-brainer answer).
on 27 Feb 2013 15:21
Lola wrote:Who gets the interest ? Like if we increase the interest rates on say mortgage loans - who keeps that interest? The government?
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