Posted by Colin Barr
November 4, 2010 12:12 pm
"Is Ben Bernanke trying to export our problems to the rest of the world?
Bernanke says in a piece in Thursday's Washington Post that the Fed decided to buy $600 billion worth of Treasury bonds over the next eight months in order to bring domestic interest rates down even further and boost asset prices. He hopes to start a "virtuous circle" of more spending, higher incomes and expanding profits, he says, that will support U.S. economic growth."
Or do you agree with Pimco heavyweight
"Mohammed El-Erian, a top executive at giant bond investor Pimco, contends in a piece published in the Financial Times that quantitative easing will fail to restart domestic growth because it fails to address the real problems that are holding down U.S. employment and output"
"Liquidity injections and financial engineering are insufficient to deal with the challenges that the U.S. faces," El-Erian writes. "Without meaningful structural reforms, part of the Fed's liquidity injection will leak right out of the U.S. and result in yet another surge of capital flows to other countries."
Headlines cheered "stocks rally as FED injects....blah blah..." but what is needed is JOBS....not phoney service sector jobs in the food industry....like openings at Red LObster.
JOBS REPORTS GIVE MIXED SIGNALS almost as many LAYOFSS announced as jobs.
Jimi said it best "castles made of sand, slip into the sea....eventually"
And just as the American people decide to pay down debt and save more....the FED decides to screw them by not paying anything on savings.....a $million of savings you would get about $2,000 of income from.....if that isn't messed up what is?
And I'll say this again.....we would NEVER have economic slowdowns or could deal with ANY crisis if all you had to do is create money out of thin air....."targeting stock prices....".....this is crazy manipulation.....and cannot end well.....pitchfork sales will go off the charts
Duratek
1 comment:
IT IS hard to believe this was a public statement.
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