Points in Warsh view
- QE3 (to infinity) is all in for the FED, this response is equal to the panic of 2008
- QE3 (to infinity) is all in for the FED, this response is equal to the panic of 2008
- Fed is worried by the sluggish US and global recovery, Europe on the dawn of recession, China weakness
- Fed cant do much more to lower unemployment rate
- Fed trying to compensate for the failure of other polices
- Exit from monetary policy is very difficult
- Fed is a Bernanke put by accident, not intention
- We are not in a panic now, but the risk of one is growing, so act now is trying to be ahead of the curve
- Congress can do more (fiscal policy)
- Stimulus polices for the next quarter is a failure
- Private sector is a better asset allocation of capital than Washington
- Getting closer to a tipping point of a real crisis
- Central bankers can buy time, to allow the economy to get back in the groove.
- The FED is try to buy time for a very long time
- Asset prices driven up not by company fundamentals but by policies from Washington, this is when a crisis can happen
You can not remove the ‘recession’ phase from the economic cycle. Playing around with the economic cycle is just wrong. Kevin Warsh says the FED is try to buy a lot of time to allow the economy to fix itself. An event could easily kick start a global recession tomorrow. For example, Spain or Italy refusing to take a bailout, just for starters.
So what more can the FED do? Very little. The patient is on a full morphine drip and if there is another wave of pain the patient will feel it.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
- Fed cant do much more to lower unemployment rate
- Fed trying to compensate for the failure of other polices
- Exit from monetary policy is very difficult
- Fed is a Bernanke put by accident, not intention
- We are not in a panic now, but the risk of one is growing, so act now is trying to be ahead of the curve
- Congress can do more (fiscal policy)
- Stimulus polices for the next quarter is a failure
- Private sector is a better asset allocation of capital than Washington
- Getting closer to a tipping point of a real crisis
- Central bankers can buy time, to allow the economy to get back in the groove.
- The FED is try to buy time for a very long time
- Asset prices driven up not by company fundamentals but by policies from Washington, this is when a crisis can happen
You can not remove the ‘recession’ phase from the economic cycle. Playing around with the economic cycle is just wrong. Kevin Warsh says the FED is try to buy a lot of time to allow the economy to fix itself. An event could easily kick start a global recession tomorrow. For example, Spain or Italy refusing to take a bailout, just for starters.
So what more can the FED do? Very little. The patient is on a full morphine drip and if there is another wave of pain the patient will feel it.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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