Topic: Quantitative Easing

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'Zero job' economy: 11 ways Washington can fix it

A stagnant job market has ramped up the pressure on President Obama and Congress to come up with solutions. What can be done? Here are 11 proposals.
Stocks plunge: four factors behind investor pessimism

The stock market is tanking. At midday Aug. 4, the Dow had fallen 300 points. The bond market is also beginning to growl like a bear. Investors are buying long-dated bonds while eschewing shorter-term securities to protect their assets, a clear indication that they feel the economy is likely to weaken further. High-profile economists are also turning gloomy. Former Treasury Secretary Lawrence Summers put the chances of another recession at 1-in-3; Harvard economist Martin Feldstein put it at 1-in-2. What's behind all the pessimism? Here are four big factors that are weighing on stocks and could determine the course of the global economy in the coming months:
Five ways US default would hit your pocketbook

With the possibility of America defaulting on a debt payment just days away, Americans are hoping for the best but bracing for the worst. Lawmakers are raising alarms. Some investors are scrambling to the safety of gold and foreign currencies. What would a US default mean for the American consumer? Here are five ways it would hit your pocketbook:
Soft patch? Three reasons economic growth is slowing.

For those hoping that the economy is merely going through a “soft patch” right now, the weight of evidence suggests something more serious. Two years after the Great Recession ended, the economic expansion has slowed to an annual rate of 1.8 percent in the first quarter of 2011 versus 3.1 percent in the final quarter of 2010. Why is the rebound so tepid? Here are three key indicators, which historically help boost recoveries, but stand in the way this time:

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Robert Reich
The Republicans' latest ploy to keep the economy lousy through election day

Republicans aim to block most or all of Obama's jobs bill, and now they're taking aim at Fed. chief Bernanke
'Zero job' economy: 11 ways Washington can fix it

A stagnant job market has ramped up the pressure on President Obama and Congress to come up with solutions. What can be done? Here are 11 proposals.
Paper Economy
MBA application survey: mortgage rates fall as application numbers increase

The average rate for a 30 year fixed rate morgage fell 7 points last week, while purchase application volume went up 0.9 percent
Will Bernanke announce another round of quantitative easing?

Experts warn against policy initiatives with questionable benefits
Paper Economy
Mortgage rates inch up, but remain near historic lows

The average interest rates for 30-year and 15-year fixed rate mortgages increased slightly from last week, bringing the 30-year rate to 4.39 percent and the 15-year rate to 3.56 percent
Stocks stage afternoon rally; Gold plunges $104

The Dow ended 144 points higher, with gold taking a dive and government bond yields rising. The S&P 500 gained about 15 points, and the Nasdaq closed about 21 points up.
Federal Reserve more likely to do third round of easing: pros

Federal Reserve will start purchasing assets again, some market observers predict. The chances of the Federal Reserve starting another round of quantitative easing shot up in the last week as markets became unstable.
Fed's interest-rate move wows Dow, but is also sign of plodding recovery

The Dow recovered almost 430 points Tuesday, after the Fed said it would keep short-term interest rates low until mid-2013. But the Fed's surprise move also points to expectations for slow recovery.
After 635-point sell-off, Fed running out of options

It's unlikely the Fed will introduce another round of quantitative easing, say some observers
Stocks plunge: four factors behind investor pessimism

The stock market is tanking. At midday Aug. 4, the Dow had fallen 300 points. The bond market is also beginning to growl like a bear. Investors are buying long-dated bonds while eschewing shorter-term securities to protect their assets, a clear indication that they feel the economy is likely to weaken further. High-profile economists are also turning gloomy. Former Treasury Secretary Lawrence Summers put the chances of another recession at 1-in-3; Harvard economist Martin Feldstein put it at 1-in-2. What's behind all the pessimism? Here are four big factors that are weighing on stocks and could determine the course of the global economy in the coming months:
Why debt-ceiling deal didn't give stock markets a bigger boost

Congress and the president may in part have wanted a deal on the debt ceiling out of concern for financial markets, but word of an agreement couldn't compete with a dismal July report.
Five ways US default would hit your pocketbook

With the possibility of America defaulting on a debt payment just days away, Americans are hoping for the best but bracing for the worst. Lawmakers are raising alarms. Some investors are scrambling to the safety of gold and foreign currencies. What would a US default mean for the American consumer? Here are five ways it would hit your pocketbook:
Donald Marron
If QE2 is over, does that mean QA2 just started?

Quantitative easing is just the first of a three-stage plan. Next up: quantitative accommodation and quantitative tightening.
Medicare, other entitlements mean US worse off than Greece

Medicare, Medicaid, and Social Security obligations put the US in terrible financial straits, says PIMCO's Gross. Public debt, Medicare, and other entitlements mean the US on the hook for nearly $100 trillion.
Soft patch? Three reasons economic growth is slowing.

For those hoping that the economy is merely going through a “soft patch” right now, the weight of evidence suggests something more serious. Two years after the Great Recession ended, the economic expansion has slowed to an annual rate of 1.8 percent in the first quarter of 2011 versus 3.1 percent in the final quarter of 2010. Why is the rebound so tepid? Here are three key indicators, which historically help boost recoveries, but stand in the way this time:
The Circle Bastiat
Is the Fed manipulating the stock market?

Stock prices are no longer based on buyers and sellers, but instead, on the US central bank. Here's how.
Stocks end modestly higher; Microsoft gains

The Dow rose about 8 points, closing higher for the second session in a row
Forex trading: Did US Special Forces just rescue the dollar?

Forex traders push dollar down to a three-year low against a basket of currencies. But one trader says the US show of military dominance could shore up the dollar on the Forex.
Ben Bernanke pulls back curtain on Federal Reserve in first-ever briefing

Ben Bernanke held a press conference Wednesday – the first of its kind by a Federal Reserve chief. He said the US economy is improving, but there are few levers the Federal Reserve can pull now to speed up the process.
Did Federal Reserve just tip its hand to a third round of easing?

Federal Reserve's statement says it will review size of its securities holdings. Instead of creating more currency, Federal Reserve could sell its securities and buy government bonds.
Ben Bernanke press conference: chance to repair Federal Reserve's image

The Federal Reserve's move toward more openness also carries risks. It all hinges on how Ben Bernanke handles the press conference. Says one Fed expert: 'It's all in the execution.'
Week ahead: new transparency at the Fed and a gusher of earnings

The Fed will hold its first-ever quarterly briefing, and new data will likely reveal sluggish economic growth for the first quarter
Bond fund (and many others) bearish on US debt

Bond fund giant PIMCO shorts US Treasuries. Bond fund says end of QE2, US budget deficits, and looming inflation will push Treasuries lower.
Stock market to continue grinding higher: strategists

Stock market will rise with economy's expansion, although they may stumble when the Fed's quantitative easing ends.
The Daily Reckoning
Japan was a 'zombie state,' even before the earthquake

The country has been living beyond its means for years, leaving future generations to pay