savings

I am on-board with Roach's sentiments. This is certainly what I take away from the U.S. policy mix. Now, a lot of economists of the Keynesian variety are telling us that the problems in the US are cyclical i.e. an aggregate demand (AD)…

by Annaly Capital Management One of the goals of QE is to raise asset prices, as we have been told by Chairman Bernanke and Brian Sack among others, which should stimulate wealth-effect consumption. Leaving aside all of the obvious hazards…

I will be on BNN today at 12 Noon ET talking about the G20 amongst other topics, so I wanted to highlight this issue. Here's the text first (with added bolding) and then a few comments: First, G20 countries should commit to undertake…

by Michael Pettis The PBoC has just announced that it is hiking the one-year lending and deposit rates by 25 basis points. Here is what Bloomberg says: China raised its benchmark lending and deposit rates for the first time since 2007…

Here we go again: the dollar appears to be under sustained attack in the foreign exchange market. To judge from its latest FOMC statement, the Federal Reserve appears to be actively encouraging inflation: “The Committee will continue to…

by Edward Hugh: Barcelona The current generation of policymakers seem to be like Captains of large ocean liners, out there on the high seas, bereft of either compass or adequate charts, trying hard to calm their worried passengers by…

Bill White, formerly of the BIS and now with the OECD spoke to Bloomberg News during the KC Fed's annual meeting in Jackson Hole, WY. He gave some rather pointed answers to questions about the Federal Reserve's monetary policy. I reviewed…

Topic of the Day: Savings rates Marginal Revolution: Australian fiscal policy BBC News - Savings used to boost spending and income BBC News - Savings raided to cover income shortfalls On the Way Down: The Erosion of…

It has been a while since I have had a round of these and in the current macro/market environment I thought it an excellent occasion to take some pot-shots at the market discourse. So, read on if you want to see what it looks like when I am…

The market is engaged in a discussion over what the Federal Reserve will do next. St. Louis Fed president James Bullard published a provocative paper about ratcheting up quantitative easing to avoid the Japanese dilemma. Conversely, Philly…