Operation Twist

A reader asked me to comment on a video from the Big Picture conference of Jim Bianco commenting on the so-called wealth effect of quantitative easing. In the video, Jim takes the position that the Fed cannot create permanent wealth though…

The real solution has nothing to do with the Fed because the constraints are demand side and not supply side. But people will continue to exhort the Fed to do more and so they will do more.

The big news in the US today was the Federal Reserve's Open Market Committee's decision to extend its simultaneous purchase of longer-dated Treasuries and sale of shorter-dated ones. This effort, dubbed Operation Twist, was set to expire at…

Investors must still be worried about the fallout from the European meltdown. However, the situation in the US is looking much better than it did last week because of this aggressive policy response.

David Rosenberg was on Bloomberg and sees operation twist. But he also says he doesn't see how the Fed could prevent a US recession. His view is that the recession is already baked in. He goes further and says that Ben Bernanke is ‘always…

The jobs numbers in the US were weak. There was no change in non-farm payrolls. Unemployment was unchanged from July at 9.1%. Underemployment was 16.2%. Total revisions to previous months’ data were –58,000, meaning the number today was…