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Thursday, 22 October 2009 16:36 |
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Bernanke is very optimistic about the recovery. Economists and economic indicators point to a different direction. An overview of opinions.
US News: At a morning question-and-answer session in September, Federal Reserve Chairman Ben Bernanke remarked that technically, the recession was "very likely over." The stock market closed that day at a new high for the year.
Reuters: The United States may face a series of asset price bubbles and a rerun of the financial crisis unless it lets the dollar fall "at least" another 25 percent, economist Bernard Connolly said on Tuesday. Because fierce international resistance will likely prevent such a large dollar devaluation, Connolly told Reuters the Federal Reserve may instead have to extend indefinitely its artificial support of a struggling U.S. economy by purchasing another $2 trillion in U.S. Treasuries and federal housing agency debt.
Found on Flickr: Peter Schiff on CNBC: Meanwhile, the FED continues to issue new paper, according to Zero Hedge: The Treasury has released the line up of Treasury issuance for next week and it is a stunner: in the week of October 26th alone, the US will issue $116 billion in new Treasury Notes (2,5 and 7 Years), another $30 billion in Bills and $7 billion in TIPS. As pointed out earlier, there is about $150 billion in availability before the Federal debt ceiling is breached ($12.1 trillion). This likely means that Geithner will have to resort to some last minute tricks to make this full upcoming issuance legally permitted.
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Last Updated on Thursday, 22 October 2009 17:13 |
