Welcome to the morning roundup. Here's a look at today's banking and finance headlines.
Bond buying. Federal Reserve Bank of Boston President Eric Rosengren is calling on the Fed to launch a bond-buying program that would continue until economic growth picks up and unemployment falls, the Wall Street Journal reports. The official's move to speak out is a sign of momentum building inside the Fed for new action, the Journal writes.
Safe havens. American investors are turning to places such as Norway, Sweden and Australia for safety while they wait out the European crisis and continued troubles in the U.S. and China, the New York Times reports. Those countries offer "little of the risk, or the outsize returns," the Times writes.
Confidence falls. CEOs in the U.S. were less confident about the economy in the second quarter, with more predicting economic conditions will worsen in the next six months, Bloomberg reports, citing a private survey. The decline from the first quarter was the largest since the survey began in 2009.
Stocks climb. Stocks rose this morning as investors await action from the European Central Bank, Reuters reports.
Tuesday, August 7, 2012
Fed official urges action to shore up economy
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2 comments:
Can you PLEASE stop using vacuous euphemisms like "take action" and define exactly what the Fed has done: PRINT MONEY AND CREATE INFLATION? People need to understand why the pack of Thomas's bagels that cost $2.99 at Harris Teeter last summer costs $4.49 today.
Your say the Fed may "buy bonds". WITH WHAT? Fairy dust? NO! With money they print out of thin air with no asset backing it.
Why would the Fed take the same actions they've already taken that have done absolutely nothing to improve employment? As 1027 points out all the Fed has done is print money which has crushed the consumer's purchasing power.
Furthermore, the Fed cannot buy bonds directly through Treasury; they buy from Primary Dealers (so-called precisely because they're the only entities permitted to buy directly from Treasury). And when the PDs sell to the Fed, they do so at a profit and with a commission. So another round of bond-buying is nothing but another round of windfall profits for Goldman Sachs and the other bankster criminals.
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