News from FT. The Federal Reserve’s latest monetary policy statement has just been released, and the signal seems to be that the central bank is gearing up for another round of quantitative easing.
Whereas at the last meeting on August 10 officials simply said they would employ their tools “as necessary” to promote economic recovery and price stability, they went further this time, saying the Fed was “prepared to provide additional accommodation if needed”.
My point. I guess they are ready to print more money even if the banks are going to keep it at the Fed. Stocks and bonds, however, seem to like the idea. Oops, I forgot, and gold.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked best market timer in the 12 and 6 months ending 8/20/10 by Timer Digest
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2 comments:
I really enjoy your posts! All of my finance and economics professors told me we were seeing strange economic behaviors, like the relationship between gold and the dollar. My uncle has been preaching gloom for years and years, and he is saying that we are about to 'double-dip.' The company I work at is seeing excellent results as of late however. I know one company is no indicator of global recovery, but for this optimist I see it as a glimmer of hope!
Don't put too much emphasis on what economic professors and your Uncle say.
Can't double dip when the first dip never stopped dipping. The illusion was created by government magicians.
If the Feds print more money, temporarily drinketh from the cup of Mammon. Then split.
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