Posts Tagged ‘animal spirits’

Notes From Underground: THE BANK OF THE UNITED STATES (THE FED) … That is the REAL Jackson’s HOLE

August 21, 2011

The week ahead will be waiting for the words of wisdom from Ben Bernanke and his take on where the U.S. is at and where the economy is possibly going. THERE WILL BE NO QE3. IT IS NOT BECAUSE OF RICK PERRY BUT BECAUSE QE2 IS A FAILURE BY ANY METRIC. THE YIELD CURVE IS FLATTER; UNEMPLOYMENT HASN’T IMPROVED; AND THE BELOVED PORTFOLIO BALANCE CHANNEL IS A NON-EVENT– AS MEASURED BY THE S&P/BOND RATIO–FOR THAT BELOVED INDICATOR IS BACK TO WHERE IT WAS AT LAST YEAR’S BERNANKE BLOCKBUSTER SPEECH. What did we get for the $600 BILLION in asset purchases. I know things would’ve been much worse. The FED has locked itself in to a two-year zero rate policy so it makes Bernanke’s task very difficult as the FED has expended a great deal of good will and has very little to show for its effort.

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