–The Fed can’t taper Quantitative Easing without really hurting the market. –Tapering of QE will signal a shift by the Fed to tighter monetary policy –Tapering will signal the end an era of Fed ease and the onset of higher inflation and interest rates, the market’s eventual downfall. –The “Worst” case and what happened to stocks,…
Tag: Recession
A significant change in message occurred Friday the 13th.
The word from Washington has changed from the coronavirus is ‘no big deal.’ We can get through this biological tap on the brakes of the economy with monetary ease (50 basis point cut in the Fed funds rate), a suggested cut in payroll taxes and, last Wednesday, a 30-day ban on flights from continental Europe….
“Walking a tightrope”
This was the title of Bloomberg’s “Weekend Reading” post, which captures and caters to the angst in the market place about the global economy and fear of the “R” word. I mean “walking the tightrope” did get my attention, so much so I used it for my title as I was attempting to gain your…
Prof. Robert Shiller–Don’t Sell (Maybe)
“I can see it as a real possibility that stocks prices and house prices would both keep going up for years (maybe), but I’m not forecasting that by any means,”– Robert Shiller. Even though this is a qualified opinion it is still quite a revelation, as the good professor, co-inventor the Cyclically Adjusted Price-to-Earnings Ratio…
Take something beautiful and drag it through the gutter
When I saw Jeff Sommer’s column, “Scoping Out a Phantom Recession”(May 24, 2015, NY Times), I thought I was in for a beautiful treat–the New York Times calling out an economist for a miserable call. And, initially that is what I got–Sommers taking the Economic Cycle Research Institute to task over making a highly confident…