Good news: welcome to the first chairwoman of the Federal Reserve.

$85 billion dollars of our money getting spent a month.

Yeah, might be worth an audit...

 

Well if the govt would take action and have clear direction then that would certainly help a lot....but that didn't happen with the latest deal. The Fed has the mandate to create stable prices and full employment. Prices are stable so they Fed can continue with low rates in order to help create better employment conditions. I wish the govt wouldn't pass this mandate off to the Fed, but it is what it is.

Further, the Fed isn't trying to inflate the stock market. The bulk of the rise in the stock market is due to P/E multiple expansion and people being less afraid of the economy crashing. The Fed has helped create the environment of stability. It is also going up because profits are good because companies are very lean and have low debt levels which means lower interest cost. On top of that if they want to take on debt they can do it cheaply due to low interest costs.

 

They are pretty up front with what they are buying. Have you ever visited the Fed's website? It's pretty useful.

 

not stock prices

The stock market is going one way and every other economic indicator is flat (wages, unemployment, economic growth). That is a worrisome disconnect.

You can't pump $85 billion a month into the economy and not have it inflate something.

 

Except, of course, the one indicator that the stock market measures: corporate profits. Your real concern should be why corporations are making record profits without any wage growth or employment. But as a libertarian, that's not really a concern of yours anyway.

 

That would kind of ruin the conspiracy party. It's like the time Adam showed up to our tin foil party and told us exactly what wavelengths the tin foil would and would not block.

 

Yep. And in that $85 billion dollars, I'm sure there will be some mistakes. Perhaps not even mistakes so much as something which the goldtards can interpret as mistakes for their populist mouthbreathers to serve as an additional weapon for END THE FED.

There's no reason to humor the conspiracies and idle fancies of people like Paul.

 

yeah, like those conspiracies about the government capturing all of our phone calls...

 

So QE ended a couple of months ago and the world didn't collapse as promised.

Can't wait for the mea culpas to finally start rolling in.

 

What happened to the runaway inflation and QE-Infinity that we were promised?

 

Oil prices have collapsed. And the fed is continuing $15 billion worth of purchases, to my understanding.

 

Oil prices collapsing are (1) a good thing and (2) the opposite of what was predicted by the crazies (runaway inflation! $5000 gold!).

Not sure what you're referring to in the $15B. That may be cycling through bonds that are coming due, but the easing has ended.

 

This thread is a goldmine of failure.

 

I'll start with mea culpas - you were correct that the government would make money on AIG bailout (as well as all of TARP and the Auto bailout).

I was still in favor of the bailout but figured the AIG stuff was so near worthless that there was no way it would get to break even.

But no we would have been better off everything just failed because...atlas shrugged, or bitcoin, or zimbabwe or something.

 

Benghazi!!!

 

Bitcoin
Putin "The Real Leader"

 

What happened to the deflation and recession after the sequester that we were promised?

Monetary policy> fiscal policy

Yellen has done an excellent job just like Republican Bernanke did.

Glad everyone ignored Krugman and Keynesian call for another huge spending stimulus bill.

 

Oil price collapse is bad. This indicates that if fed raises interest rates then oil and overall consumption will fall further. Since at the moment there seems to be no oil drop induced inflation the fed should probably away from raising short term rates in 2015.

 

Krugman is neither Keynesian nor liberal. He is a misanthropic polemicist.