Ben Bernanke & US Fed 01 (May 08 - Nov 10 )

Re: Ben Bernanke / US Fed

Postby millionairemind » Sat Aug 28, 2010 6:48 am

Aug 28, 2010
Fed may 'take action'

JACKSON (Wyoming) - FEDERAL Reserve Chairman Ben Bernanke said on Friday that the Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare.

The Fed chief offered his most extensive thoughts yet on how to pull the US economy out of a deepening slump. His remarks came 90 minutes after the government said the economy slowed sharply in the second quarter to a 1.6 per cent pace.

Fears are growing that the US could lapse back into a recession. Mr Bernanke described the economic outlook as 'inherently uncertain' and said the economy 'remains vulnerable to unexpected developments'.

Mr Bernanke stopped short of committing to any specific action. But he raised the prospect of another Fed purchase of securities, most likely government debt or mortgage securities, to drive down rates on mortgages and other debt to spur more spending by Americans.

The other two options he laid out are: - Providing more information in the Fed's post-meeting policy statements about how long Fed policymakers would continue to keep rates at record lows. For more than a year, the Fed has been pledging to hold rates at ultra-low levels for an 'extended period.' - Cutting to zero the interest the Fed pays for banks to keep money parked at the Fed. That rate is now 0.25 per cent.

'The issue at this stage is not whether we have the tools to help support economic activity and guard against disinflation. We do,' Mr Bernanke said. -- AP
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
User avatar
millionairemind
Big Boss
 
Posts: 9605
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: Ben Bernanke / US Fed

Postby winston » Sat Aug 28, 2010 9:02 am

So are you all excited just because he said that he will try to do his best ?

If you dont have money, it does not matter that interest rates are at zero ..
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105034
Joined: Wed May 07, 2008 9:28 am

Re: Ben Bernanke / US Fed

Postby iam802 » Sat Aug 28, 2010 9:43 am

winston wrote:So are you all excited just because he said that he will try to do his best ?

If you dont have money, it does not matter that interest rates are at zero ..


The short term bounced is expected.

You can just look at the chart, it has not drop as furiously compared to the FAT FINGER error, or when Euro was having issues couple of weeks (months) back.

So, for the short term traders, most are just waiting for this rebound. (>> I know I am)

Now that it has reversed, the levels that I am looking at :

1063, 1090 and 1130.

Hitting these 2 levels is a good enough gain for me.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
User avatar
iam802
Big Boss
 
Posts: 7268
Joined: Wed May 07, 2008 1:14 am

Re: Ben Bernanke / US Fed

Postby greenhoney » Sat Aug 28, 2010 10:24 am

i think ben will rather herald an inflationary holocaust rather than a delflationary depression.
greenhoney
Foreman
 
Posts: 270
Joined: Tue Feb 17, 2009 9:39 am

Re: Ben Bernanke / US Fed

Postby kennynah » Sat Aug 28, 2010 12:47 pm

of cos...then he wont have to spend his masters' money if there's inflationary pressure and can command higher interests on fed loans...
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 18582
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: Ben Bernanke / US Fed

Postby millionairemind » Fri Sep 03, 2010 6:27 am

Fed chief stresses need for banks to face stricter regulations
Posted: 02 September 2010 2350 hrs


WASHINGTON: The most important lesson to come from the financial crisis is that banks must not be allowed to become "too-big-to-fail," Federal Reserve chairman Ben Bernanke said on Thursday.

Stressing the need for banks to hold more cash in reserves and face stricter regulations, Bernanke also told a panel investigating the causes of the economic crisis that the central bank's policies did not spur the collapse.

"If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved," he said in prepared testimony.

He cited ongoing negotiations on the amount of reserves banks must keep to cover their operations and recently passed US legislation as the key tools to tackle the risks posed by big banks.

The near collapse of the US financial system was widely blamed on the troubles at a handful of very large banks whose reach spread throughout Wall Street and beyond.

Troubles at Bear Stearns, Lehman Brothers and AIG triggered waves of concern across the financial system as banks up and down Wall Street rushed to call in their loans, bringing the financial system to a standstill.

But criticising banks for taking excessive risks in buying up dodgy mortgage-backed securities, Bernanke denied that the Fed had fuelled risk-taking by keeping the cost of borrowing excessively low.

"Cross-national evidence also does not favour this hypothesis," he said, pointing rather to "optimism regarding house prices" and "significant capital inflows."

He also denied that the Fed could have stepped in to stop the bubble from popping by raising interest rates.

"Monetary policy is a blunt tool; raising the general level of interest rates to manage a single asset price would undoubtedly have had large side effects on other assets and sectors of the economy."

- AFP/de
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
User avatar
millionairemind
Big Boss
 
Posts: 9605
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: Ben Bernanke / US Fed

Postby millionairemind » Wed Sep 22, 2010 8:49 am

HOME > BREAKING NEWS > MONEY > STORY

Sep 19, 2010
Feds expected to 'wait and see'


WASHINGTON - GLIMMERS of a revived economic recovery are expected to give the US Federal Reserve some breathing space when its top committee meets on Tuesday, avoiding a renewed battle inside the central bank.

Members of the Fed's policymaking panel will gather for the last time before November's mid-term elections, with the economic outlook transformed since their last meeting from apocalyptic to vaguely promising.

The Federal Open Market Committee (FOMC) is expected anchor the fragile recovery by promising to leave interest rates at historic lows and keep stimulus spending at current levels. But with the economic picture brightening it is expected to hold off from dramatic increases in spending designed to speed up growth.

'We see the improved data as buying time for the Fed to sit on the sidelines at the September FOMC meeting,' said Michael Gapen of Barclays Capital. The US economy, after months of languishing in the doldrums, has regained some momentum since the Fed meet at the end of June, when members expressed concern about a 'sluggish' economic recovery.

In July and August private firms continued to add jobs, albeit at pace that was too slow to offset the loss of tens of thousands of Census taking jobs.

A rapidly narrowing trade deficit and recovering consumer prices have also pointed to a tempered, if tepid, recovery. Most economists now expect the economy to grow faster in July, August and September than the previous three months. That could help avoid a showdown at the Fed over the need for more stimulus. -- AFP
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
User avatar
millionairemind
Big Boss
 
Posts: 9605
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: Ben Bernanke / US Fed

Postby winston » Wed Sep 22, 2010 8:58 am

In an earlier post, someone mentioned that Heli Ben has already made plans to have QE2 should things worsen from here. I think the forummer may be correct.

So I dont think things will be that bad for Equities going forward.

If there's a "Double Dip", there would be Liquidity from QE2.

If there's no "Double Dip", earnings would be catching up with Valuation.

Why am I so optimistic today ? Must be the full moon effect :?
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105034
Joined: Wed May 07, 2008 9:28 am

Re: Ben Bernanke / US Fed

Postby winston » Tue Sep 28, 2010 8:22 pm

There was a report in the Wall Street Journal saying that the Fed may not announce massive bond purchases with a finite end as it did in 2009 but instead opt for a smaller-scale program that can be adjusted as the recovery unfolds.

The Fed's next meeting is in early November.


Source: AP
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 105034
Joined: Wed May 07, 2008 9:28 am

Re: Ben Bernanke / US Fed

Postby kennynah » Tue Sep 28, 2010 8:44 pm

why would fed slow down its bond purchases from treasury??

could it be that bond prices have risen enough?
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 18582
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

PreviousNext

Return to Archives

Who is online

Users browsing this forum: No registered users and 1 guest

cron