Said the Fed: "The economy's gist, again,
Is that lackluster data persist again;
In short, we have found
That it's coming unwound,
So come on now baby - let's twist again!"
The policy makers of the Federal Reserve Open Market Committee conclude their latest two-day meeting this afternoon with a Ben Bernanke press conference at 2:15 EDT. Most observers expect that, in view of lingering economic weakness in the US, and the downside risks posed by the euro zone debt crisis, the Fed will continue with the so-called Operation Twist.
Under this groovy program of monetary stimulus, the Fed sells short-term Treasury bills and notes, and invests the proceeds in long-term bonds (either Treasuries or mortgage-backed). In so doing, Chairman Bernanke and his cohort hope to stimulate credit activity by holding down the cost of long-term borrowing. As we have seen, this program has had mixed results, in part due to many Americans' limited access to credit. Then again, the tools of the Fed are also limited.
Wednesday, June 20, 2012
Subscribe to:
Post Comments (Atom)
Popular Posts
-
Said a Harvard professor of econ, "That Google's got something unique on: They have cash by the score, Yet still borrow more; T...
-
"After proofing each check and gratuity, We've determined beyond ambiguity: Your expenses look funny, If none of this money ...
-
I'm buying a Powerball ticket (Or several, or even a thicket), In hopes I may win A billion bucks in The unlikely case that they pic...
-
The US has always depended On a rate of consumption that's splendid, By consumers for whom The means to consume May soon have them over...
-
"In reviewing your earnings per annum, We're less than impressed, and we pan 'em. The bank may have gains, But this letter ...
-
Economists show the proclivity Toward lamenting the lost productivity When Americans cling, From the first day of Spring, To basketball ...
-
Said the Lehman bankruptcy inspector Of the repo transactions that wrecked 'er: "The Feds, who were looking At books that were ...
-
Though intended to thwart something scandalous - That those who have millions on hand do less - The AMT's hardest On households more ...
-
Facebook is valued at plenty By Wall Street's high-tech cognoscenti, Based on 1 billion friends Times $5 each, then Times the IP...
-
On a US default, we deduct, If the GOP reps can obstruct, Our economy's fatally, Foolishly, finally, Fittingly, fecklessly f***ed. ...
Dr. Goose's Blogs of Note
Posts
No comments:
Post a Comment