Fed’s Bill Dudley: The Fed Doesn’t Fully Understand How QE Works

The Fed’s Bill Dudley admitted what many of us already suspected.  The Fed has no clue how QE would affect the markets.  Such a statement from a high level Fed official is unusual, and a very telling sign. From Zero Hedge: Well, it took three years, but finally the Goldman Sachs-based head of the New […]

Fed may taper if data meet criteria

In typical Fedspeak, the Fed has said absolutely nothing while discussing tapering, saying that they may taper if conditions warrant, with an unknown amount. *FOMC SAW `SEVERAL SIGNIFICANT RISKS’ REMAINING FOR ECONOMY  *FED TAPER LIKELY IN COMING MONTHS ON BETTER DATA, MINUTES SHOW *METLIFE FOUNDATION, SESAME WORKSHOP PARTNER TO PROVIDE FINL *FOMC SAW DOWNSIDE RISKS […]

3 Potential “Taper” Surprises And FOMC Sugar-Coating

As we head for the fateful FOMC announcement on September 18, US data have continued to moderate. Accordingly, the consensus seems to be converging on a $10-15 billion initial reduction in monthly purchases (mostly focused on the Treasury side and less so on MBS) with any ‘tightening’ talk tempered by exaggerated forward-guidance discussions and the potential to […]

The Fed Has Wasted Trillions and the US Remains in Depression

The facts are now becoming abundantly clear, that the forecast we’ve maintained for well over two years has been validated: the US is in a DE-pression and both Washington and the Federal Reserve have wasted trillions of Dollars. The reality is that what’s happening in the US today is not a cyclical recession, but a […]