Simply put, the Fed pulled off a magic trick that would leave Houdini gasping. Janet Yellen and the Fed took the made-up money and bought Wall Street assets that would have otherwise crashed and gave money to Wall Street banks that would have otherwise gone bankrupt...with no strings attached.
The Federal Reserve's core guiding belief is that economic stimulus boosts economic growth, thus increasing employment opportunities, payrolls, tax revenues, corporate profits, retirement security and Wall Street wealth.
The fact that the government is utterly financially unconstrained in just the way Trump noted today is the hugest, most subversive Truth he has told to date. And of all the truths he has ever told, it is the one that libertarians should be proclaiming the loudest.
In the aftermath of the global financial crisis, central banks around the world have become the largest, most powerful, and exceedingly profitable financial institutions. And they can't wait to get out of this predicament.
ECB President Mario Draghi has been highly effective with his words alone -- moving markets with speeches and little action. However, by doing so he has also set the bar high and expectations for action are becoming the norm.
I have built my career on the belief that all students can benefit from learning how to start and maintain a small business. But without understanding the theoretical underpinnings of this movement, we lose some of its significance.
America's financial and economical decisions will have an effect on emerging economies in the times to come. The reversal of flows will destabilise emerging economies, and an effort to attract investment will have to be made in order to keep the increasing growth rates in the GDP.
There has been a lot of talk about a rebound in the equity and real estate markets helped along by the Fed's free money. That much is for sure the truth; but the evidence of a viable and sustainable recovery built on free-market forces just isn't there.
Despite the global economic situation, Colombia has shown resilience to external shocks in recent years, with reasonable economic performance in its region, in part due to responsible monetary policies conducted by the Central Bank.
The end of these unconventional monetary policies will come and may pose threats to financial stability because of the length and breadth of their unprecedented reign. Policymakers should be alert to the risks and take gradual and predictable measures to address them.
Unless we choose a course that makes drastic changes to monetary and fiscal policies, each successive generation of Americans will work away their lives in quiet frustration in a system that guarantees repeated recessions, depressions, inflation and perpetual poverty.
That investors are far from bullish may indicate more life and potential upside to this market rally. But nobody really knows. The third quarter saw quality blue chips enjoy better relative performance. As our posture remains defensive, we hope that this beneficial trend will continue.