Forward Guidance - Who Are You Going to Believe, the Fed or Your Lying Eyes?
by Paul Kasriel, The Econtrarian
Recently, a commentary published by the
Federal Reserve Bank of San Francisco, 'How Stimulatory Are Large-Scale
Asset Purchases?', came to my attention. In this commentary, the
co-authors, Vasco Curdia and Andrea Ferrero, state:
'The Federal Reserve's large-scale
purchases of long-term Treasury securities most likely provided a
moderate boost to economic growth and inflation. Importantly, the
effects appear to depend greatly on the Fed's guidance that short-term
interest rates would remain low for an extended period. Indeed,
estimates from a macroeconomic model suggest that such interest rate
forward guidance probably has greater effects than signals about the
amount of assets purchased.'
What We Read Today 08 August 2013
Econintersect: Click Read more >> below graphic to see today's list.
The top of today's reading list says
Assad may not have given permission for the gas attack ........ and
the last article reports on recovering U.S. auto sales. There is also a
special Sunday bonus at the end.
Russian Dash Cam Video
Russian
trucks, vodka and unsuspecting motorists make a deadly combination.
Slick roads and speeding play apart too. I bet the new truck sales is
booming.
A Word from This Newsletter's Sponsor
We Just Raised the Price Target for this Bakken Stock.
We are expecting a 153% gain for this small oil producer.
And massive new land purchase could send production higher.
Now we are upping the share target for this $8 gem to $26.
Senator Robert Owen of Oklahoma and the Federal Reserve's Formative Years
by Chad R. Wilkerson - Economic Review 3Q2013, Federal Reserve Bank of Kansas City
U.S. Senator Robert Owen of Oklahoma
played a key role in the formation of the Federal Reserve in the early
twentieth century. He championed the creation of a quasi-public central
bank with a decentralized structure. Senator Owen contributed to the
Fed's early development and sought a Fed structure that would avoid
placing too much control either in a centralized agency in Washington,
D.C., or in a small number of Wall Street bankers. Owen generally
praised the Fed's early performance but became a critic in the early
1920s, and again in the 1930s, when its deflationary policies were
especially harmful to the agricultural economy of his home region.
Infographic of the Day: Do Business Owners and Employees See Eye to Eye?
This infographic examines whether employees or business sees eye-to-eye.
The Week Ahead: How will Syria Impact Stocks?
by Jeff Miller, A Dash of Insight
Last week I predicted that we would see
volatility without clarity. The market concerns include Syria, changes
in Fed policy, the nomination for Fed Chair, and the debt ceiling,
roughly in that order. We got the employment report, the last big piece
of economic data before the FOMC meeting, and plenty of speeches and
pundit pontification. What do we know? Nothing more than we did a week ago! This looks like a victory on the cloudy crystal ball front.
EU, US House Prices Still Showing Little Sign of Recovery
by Felix Richter, Statista.com
According to the Economist, the
remarkable house prices that preceded the worldwide financial crisis
still show little sign of recovery. In the United States however, there
are now signs of life, even though the situation is still grim. Prices
rose in the first quarter of 2013, though the pace of growth may well
peter off due to rising mortgage rates.
Why Silver Prices Will Double from Here
Written by Michael Lombardi, Profit Confidential
As
gold bullion prices declined in the period from April to June of this
year, so did silver prices. And just like gold bullion, the bullish case
for the white metal's prices continues to build.
Demand for the white precious metal is not just robust; it is rising. The chart below compares sales of silver coins at the U.S. Mint in the months of January to July of 2012 and 2013.
Inside Scoop: The Next Fed Chairman
Special Report from The Martian via the Daily Reckoning
by Pierre Lemieux, Daily Reckoning
Following an extensive investigation, The Martian
can reveal that it is neither Lawrence Summers nor Janet Yellen who
will be the next chairman of the Federal Reserve System. Instead,
President Obama is scheduled to announce that Davita Vance-Cooks will
replace Ben Bernanke on Jan. 1.
What Happened to the 'Snap' Merger USAirways and American Airlines?
Written by William Kurtz
The folks at USAirways and at American
Airlines thought their proposed merger would be an easy case. After all,
there had been four recent mergers which had sailed right through with
hardly a ripple. However, this time proved to be different.
Documentary of the Week: Soft Currency Economics
Econintersect:
This week Warren Mosler presents a lecture at the University of
Missouri Kansas City on the operations of modern fiat currency systems,
explaining how traditions of former hard currency regimes have confused
thinking of many.
[
Click through Read more >> to view video.]
30% of U.S. Internet Users Share Their Home Address Online
by Felix Richter, Statista.com
In the wake of the NSA surveillance
scandal, which sparked a global debate about online privacy, the Pew
Research Center published a report on online anonymity in the United
States. It shines a light on both, the extent to which Americans share
information online and the measures they take to protect their online
anonymity.
