The dollar would have fallen faster or further had there not been this massive central bank intervention. If in fact they are going to cut back on their dollar-support activities, then the dollar is going to resume its decline, and that's going to have some inflationary implications. |
The Fed is a price fixer; it fixes the price of short-term credit. If there's an increase in demand for credit, interest rates want to rise. But because the Fed is fixing the price of credit to keep rates from rising, it has to create more reserves or allow banks to create more money, and that's what leads to bubbles. |
The Fed is clearly not in the mood to preempt inflation. They're going to wait, and that ultimately will have some unpleasant ramifications. |
The Fed is happy to provide all the reserves the banking system needs, ... It's told the banking system 'Ya'll lend now,' and they're doing it. |
The Fed is happy to provide all the reserves the banking system needs. It's told the banking system 'Ya'll lend now,' and they're doing it. |
The Fed isn't eager to cut rates anymore. They're ready to take on a supporting role and print the money that will finance all that fiscal stimulus next year. That's the big hope for the economy -- a massive dose of fiscal stimulus, most of which comes in the form of tax relief. |
The final chapter of Greenspan's legacy has not been written. |
The final chapter of Greenspan's legacy has not been written. Maybe it will work out fine, but maybe not. |
The labor market is improving, optimism is improving and spirits will be higher this holiday season. Sales are going to better than OK, they're going to be good. |
The lady doth protest too much, methinks, |
The lady doth protest too much, methinks. |
The new data are pointing toward a bottoming out in the manufacturing sector, |
The only reason they won't cut is because Alan Greenspan suggested he wasn't yet in the mood to cut, ... He's probably a Cubs fan as well -- they always say, 'Wait 'til next year.' In this case, Greenspan says, 'Wait 'til the second half.' |
The people that make the stuff say that things aren't getting better. But the data say different. |
The problem is that labor has basically priced itself out of the market. We had a very sharp run up in compensation costs in the late 1990s. People got too expensive and they're still too expensive. |