Since the great recession, the Federal Reserve has taken extraordinary measures to keep interest rates low. These policies have likely Diminished the Americans’ purchasing power. Inflation is increasing while interest rates are decreasing. How much has the disparity between the two cost us? The Federal Reserve Vs. Interest Rates infographic 'Get ValueWalk's Daily Edition By Email and Never Miss Our Top Stories'
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Chris Woods of CLSA is out with his famous latest weekly commentary Greed and FEAR. Last Week, Woods discussed China and expressed doubt whether China could ever rebalance from an export oriented economy to one oriented towards the consumer. This week Woods talks about Japan, and although the report came out after the huge drop in the Nikkei that is only a side point. Below is the entire report from Greed and Fear titled...
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The Federal Reserve Chairman Ben Bernanke appeared before the Joint Economic Committee in Congress today to explain the position of the Central bank on its bond buying program, among other things. There was a clear takeaway from the testimony, Ben Bernanke is promising nothing when it comes to ending QE3. According to Jon Hilsenrath over at the Wall Street Journal, what Bernanke said this morning was that when the Federal Reserve decides to end...
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When will QE end? Bernanke is set to testify before Congress. Is tapering coming soon? And a discussion of whether the Fed will end the rally, with Jon Hilsenrath, Wall Street Journal, known as probably the best source on Fed policy. Below is the video of the interview with CNBC (5/21/2013). Jon Hilsenrath Here’s what Bernanke will say 'Get ValueWalk's Daily Edition By Email and Never Miss Our Top Stories'
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Find out why investors are ‘drowning’ in central banking and how Apple is the new Microsoft according to Jeff Gundlach, CEO of DoubleLine Capital and the new so-called ‘bond king.’ Jeff Gundlach sat down with Reuters TV to discuss Fed policy and some tech giants, among other topics. Jeff Gundlach video below 'Get ValueWalk's Daily Edition By Email and Never Miss Our Top Stories'
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PIMCO’s Bill Gross brought a smile face mug on Bloomberg TV‘s “Market Makers” today to illustrate to Erik Schatzker and Sara Eisen how happy he is. Bill Gross said the end of the 30 year US bond rally is unlikely to be like 1994 and he sees 12-months of treasury, corporate and high yields that don’t move much. Bill Gross also said: “We see bubbles everywhere, and that is not to be dramatic and...
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My view is that there is no such thing as a free lunch, not even for governments or central banks. Any action taken may have benefits, but also imposes costs, even if those costs are imposed upon others. So it is for the Fed. At the beginning of 2008, they had a small, clean, low duration (less than three years) balance sheet on assets. Today the asset side of their balance sheet is much...
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Gundlach on Apple : I’m Not Positive or Negative DoubleLine Capital’s Jeff Gundlach says the easy money on shorting Apple has already been made. Bond King Sits With Halftime Jeff Gundlach, DoubleLine Capital CEO & CIO, says anything with a yield on it will be more valuable going forward. Transcript: okay, welcome back to the halftime report live. we’re joined for the whole hour by lee cooperman of omega advisers. he’s the chairman aceo....
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Charles Plosser, president of the Philadelphia Federal Reserve Bank or The FED, told Tom Keene and Sara Eisen on “Bloomberg Surveillance” today that “we’ve dug ourselves a very large hole” and that “when I’ve weighed the costs and benefits of this policy, I’ve decided that the costs outweigh the benefits.” Plosser also said that it is “disturbing” to him that “more and more is being expected of central banks.” He said, “We...
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Stanley Druckenmiller was a managing director at George Soros’ Soros Fund Management, where he managed $22 billion for the Quantum Fund. He founded Duquesne Asset Management and ran investments until he closed the firm in 2010. Currently, Druckenmiller manages his family fortune. At the Ira Sohn conference, he reiterated his disagreement with the U.S. Federal Reserve loose monetary policy and its resulting subsidy of asset prices and risk premiums. However, Druckenmiller does not see...
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Charlie Munger: Banks may ‘get in trouble again’ Despite Berkshire Hathaway’s large investments in big banks, Charlie Munger says the banks need more regulation and less risk on their trading books. Charlie Munger on jobs: ‘Suffering is required’ Billionaire Berkshire Hathaway Vice Chairman Charlie Munger says, ‘I don’t think you change policies because some people are suffering.’ Buffett: Income inequality hurting economy Billionaire investor Warren Buffett thinks immigration reform will pass in Congress and...
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