Is There a Reckoning Coming Thanks to Quantitative Easing?
Federal Reserve rune reading is serious business for a lot of big name investors. So I was interested to note that yesterday, when the minutes of the last Federal Reserve meeting held on October 23 and 24 came out, it pointed to yet more money injections into the economy, as part of a process that’s known as “quantitative easing.” QE has made anyone who owns stocks richer in the last year, buoying the market and helping hike up consumer confidence. If we’re reading the runes correctly, it looks like Ben Bernanke and his team are going to keep buying bonds well into next year in an effort to keep that good feeling going. The news coincides nicely with my new feature in the latest issue of Time magazine on the oracles at the world’s largest bond trader PIMCO — Bill “the Bond King” Gross and his heir apparent Mohamed El-Erian, both of whom are very, very worried about the effects of this Fed-induced market sugar high, and what it might do to the economy in lieu of real economic ...
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Bernanke, Geithner visit India to boost economic ties
Tuesday, October 9, 2012 - 07:07 PRAKASH SINGH/AFP/Getty Images U.S. Treasury Secretary Timothy Geithner (R) talks with U.S. Federal Reserve Chairman Ben Bernanke during a meeting of U.S.-India Economic and Financial partnership in New Delhi on October 9, 2012. Treasury Secretary Tim Geithner and Fed Chairman Ben Bernanke are visiting India together today. The two are there to boost economic ties -- last year trade between the two countries stood at $57.6 billion. They hope that figure will dramatically increase after India pushes through reforms to open up key sectors -- like retail -- to foreign investment. If you want to see America's growing influence on India just visit any large shopping center. You'll see how popular American companies like McDonalds and Starbucks are with young people. Young Indians have embraced American culture over that of their old colonial rulers, Britain. So on this trip, Bernanke and Geithner want to capitalize on this popularity for American ...
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European markets feel effect of QE3 announcement
Friday, September 14, 2012 - 05:45 Chip Somodevilla/Getty Images Federal Reserve Board Chairman Ben Bernanke testifies before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill July 17, 2012 in Washington, D.C. The Fed will spend $40 billion a month buying mortgage securities to keep interest rates down and inject liquidity into the U.S. economy. Yesterday, that news was a big help to markets here in America. Today, it seems to be giving a helping hand to Europe as well. "September was always feared as a potential very dangerous month for the whole euro zone economy ," says James Knightly, senior international economist with ING. "In the end, the ECB continues to offer support and is looking to step up its bond-buying program. And also the Dutch elections -- we've actually got a pro-EU government in. And of course, we've got this extra stimulus from the Federal Reserve." It is fairly typical that Fed action helps boost European markets. But to what extent does it really ...
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