Between every FOMC meeting we hear from Plosser, Fisher and others that the FED needs to reign in QE2 and start reversing the huge amount of liquidity that it has added to the financial system. The airwaves are filled with the dissenting voices of the “monetary hawks” proclaiming their fidelity to edicts of responsible monetary policy. However, come the scheduled meetings, the “HAWKS” become detaloned as they fall prey to the soft coos of the “doves.” It seems that entrance into the FED’s citadel requires that one must leave individualistic thought in your home district and resolve to join the consensus.
Posts Tagged ‘jobless claims’
Notes From Underground: SHOULD THE SEC CLOSE DOWN DAVOS AS IT IS THE EPITOME OF INSIDER TRADING?
February 2, 2011Now that the lights have been turned off at the World Economic Forum in Davos, and all the sycophants have praised the wealth creators of the world, the question must be asked: What takes place in this beautiful resort that people spend up to $500,000 for the privilege of sharing thoughts with the global movers and shakers? If so much can be gained by listening to policy makers in private sessions, shouldn’t the whole FORUM be deemed an inside trader’s paradise?
Notes From Underground: BOE, check; ECB, check; Bank of Korea Raises
January 13, 2011As expected, the U.K. and the Trichet-led ECB held rate steady. The surprise was the South Korean Bank raising rates 25 basis points to 2.75 percent. Yet the markets, although purportedly surprised, did very little with the WON. More interesting for the currency markets was Trichet’s statement that the ECB was concerned about inflationary pressures within the EU. This on a day when Greek unemployment rose to more than 13 percent. Mr.Trichet, will you ever learn? The markets have just allowed the EU to phony up the Spanish and Portuguese DEBT auctions and before the DOLLAR can even try to rally, Trichet plays the INFLATION card. Really, with an overall European unemployment rate of 10 percent, do the ECB policy makers not believe in output gaps, and, of course, NAIRU?