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Quantitative Easing

Where There's A Will There's a Way

Michael Farr | Posted 11.24.2015 | Business
Michael Farr

If the full extent of the budgetary problems are not well understood, how can we be in a position to address the problems?

Friday: Draghi Fever Has Traders Ignoring More Terrorism

Phil Davis | Posted 11.20.2015 | Business
Phil Davis

170 hostages were taken at the Radisson Hotel in Mali.  I know - where's Mali?  Who cares?  Apparently, not too many of you d...

An End To Austerity?

Harlan Green | Posted 11.09.2015 | Business
Harlan Green

The result of such austerity policies has been lost output and overall wealth that several economists say could last for years--and may even be permanent--hurting both jobs and economic output.

Senator Ted Cruz Really Wants to Return to the Gold Standard... Has He Heard of the Great Depression?

Marvin Meadors | Posted 10.30.2015 | Politics
Marvin Meadors

Radical conservatives, such as Cruz, and libertarians believe gold to be a hedge against inflation. It is curious to be concerned about inflation at a time when it is at historic lows and short-term interests rates are at zero, making borrowing money just about free.

Want to Grow the Economy? Time to Unleash the Devil.

Lynn Parramore | Posted 10.30.2015 | Business
Lynn Parramore

Adair Turner discusses his new book, Between Debt and the Devil: Money, Credit, and Fixing Global Finance and the critical questions -- and radical solutions -- that can help lift the economy for everyone.

Tricky Tuesday -- More China Easing Spooks the Bears

Phil Davis | Posted 10.27.2015 | Business
Phil Davis

Oh this is so ridiculous! After opening down 200 points (1%) the PBOC boosted the Chinese markets with yet another announcement of easing monetary policy.

Monday Market Preview: Earnings Season Begins

Phil Davis | Posted 10.12.2015 | Business
Phil Davis

Well, at least the expectations are low now. As you can see from the chart on the right, earnings have been revised down 30% in the past week (f...

Testy Tuesday: German Investor Confidence Crashes With the DAX

Phil Davis | Posted 09.15.2015 | Business
Phil Davis

As noted yesterday, the DAX is in trouble.   It's no surprise to us then that, this morning, Germany's ZEW Economic Sentiment Indic...

Confusion Reigns

Michael Farr | Posted 08.06.2015 | Business
Michael Farr

Economic data and financial-asset prices don't always paint the same picture about the health of the economy.

Has the Chinese Market Finished "Correcting"?

Michael Farr | Posted 07.14.2015 | Business
Michael Farr

All things considered, the major equity markets of the world have been fairly orderly for the past year and a half. That is, all except the Chinese market.

Riding a Growth Wave

Michael Farr | Posted 06.25.2015 | Business
Michael Farr

It is still early days for the American newfound interest in health and wellness, but as organics only make up 5 percent of total food sales I think the industry has a long runway of growth ahead.

Irrational Exuberance?

Michael Farr | Posted 05.22.2015 | Business
Michael Farr

I've stated repeatedly that a massive amount of stimulus has been required to generate GDP growth of just 2.0%-2.5% annually since the end of the Great Recession (June 2009). We have further said that the removal or reversal of some of these stimulants will be a tough hurdle for the economy to overcome.

What Is About To Crash - The Markets, The Economy? Neither, Even If Greenspan (Who?) Says So!

Terry Connelly | Posted 05.19.2015 | Business
Terry Connelly

It's late spring, and the Chicken Littles are back. They don't fly but they do cluck.

Poking Holes in the Strong-Dollar Thesis

Michael Farr | Posted 05.11.2015 | Business
Michael Farr

The dollar began its ascent against other major world currencies in mid-2014. The move higher was fast and furious, but the greenback ran into some resistance beginning in the middle of March.

Where Is That GDP Growth We Keep Waiting For?

Luis Ubiñas | Posted 05.04.2015 | Money
Luis Ubiñas

Balancing the budget through reduced spending and increased revenues, ending the vast expansion of the Federal Reserve's balance sheet and normalizing interest rates, are all necessary actions in the effort to right the economy in the face of the Great Recession.

Protester Attacks ECB President Mario Draghi

The Huffington Post | Alexander C. Kaufman | Posted 04.15.2015 | Business

"End the ECB dictatorship!"

Fed Near the Cliff

Michael Farr | Posted 06.09.2015 | Business
Michael Farr

The incessant parsing and analysis of each and every Fed utterance is becoming quite comical. God love Steve Liesman and Mark Zandi, but are they really adding much value by trying to read between the lines of each statement from each Fed member?

Why Do Interest Rates Keep Decreasing?

Michael Farr | Posted 05.27.2015 | Business
Michael Farr

The market's response to Wednesday's economic data was somewhat perplexing at first blush.

How Germany Can Make or Break the Euro

Helen I. Hwang | Posted 05.17.2015 | World
Helen I. Hwang

The eurozone's largest economy, Germany can essentially "make or break" the euro, especially now at this critical juncture of the crisis. Germany is the largest in the eurozone and that heft is putting it in the role as "rule-maker -- providing order and discipline."

Why Is a Central Bank Taking the Risks of Quantitative Easing?

Stefan Bielmeier | Posted 05.15.2015 | Money
Stefan Bielmeier

Surging liquidity, more risk on the balance sheets of banks and insurers, sky-high valuations in individual asset classes -- these are some of the already visible consequences of the ECB's policy, and the trend is set to continue.

The End of the Gravy Train?

Michael Farr | Posted 04.25.2015 | Business
Michael Farr

In the summer of 2013, a sharp spike higher in interest rates caused by the "taper tantrum" (fear that the Fed will soon end monetary easing) reduced both housing affordability and the opportunities to lower mortgage rates through refinancing.

Maybe The Federal Reserve Has Been Right About The U.S. Economy All Along

Terry Connelly | Posted 04.12.2015 | Business
Terry Connelly

Hard as it may be for its legion of economic, political and media critics (and even some of its own members) to accept, the most recent bullish jobs report from the Labor Department looks like a ringing endorsement of Federal Reserve policies and perspectives on the economy.

The Bernanke-Yellen Recovery

Harlan Green | Posted 04.09.2015 | Business
Harlan Green

This is something that Germany, instigator of the eurozone's austerity policies, has to learn if it wants to bring Europe out of its Second Great Depression; by supporting policies that will unite Europe into a greater union, rather than cause its disintegration.

ECB Paddles Both Ways in the Rubicon

Stephen G. Cecchetti | Posted 04.11.2015 | Business
Stephen G. Cecchetti

On January 22, the ECB crossed the Rubicon twice -- but in opposite directions. In an effort to combat deflation and years of anemic growth, the central bank announced a sustained program of large-scale asset purchases.

A Race Against Time

Michael Farr | Posted 04.01.2015 | Business
Michael Farr

The year 2015 may yet produce solid returns for investors in US stocks. However, it's looking more and more likely that TINA ("There Is No Alternative"), more than any other factor, will be responsible rather than strong earnings growth.