Why is printing trillions of new dollars not giving the US economy a bigger boost? Here are three reasons why… The “extra” money goes to banks, not you and me. We’re seeing little of this money. You can’t spend what you don’t have. We depend on small and medium-sized companies to generate
Two Fed officials said there was no need for further easing. The Fed is sitting tight for now, continuing its Operation Twist program until it expires in June.
GDP came in at 2.2% for the first quarter – an uninspiring rate considering that GDP grew 3% in the fourth quarter last year and the economy was expected to expand by 2.5% this past quarter. What kept the economy from doing even worse were car sales.
Did you catch it? Paul Krugman vs. Ron Paul on Bloomberg TV yesterday. If you were busy at work, like most Americans, below is a snapshot of their debate (if you can call it that).
My nightmare scenario is an unstoppable banking crisis from Europe that spreads to the rest of the world with dire consequences for the global economy.
The mood in the market now is crazily giddy.
Investors are seeing ‘green shoots’ in the housing market… they’re breathing a sigh of relief as the US unemployment rate is slowly but surely moving down… and people are feeling more optimistic today than they have in years.
This much is fact: The Fed pumped money into the economy through the banks during the two QE rounds. The opinion comes in with trying to figure out whether it was a good or bad move.
“Notwithstanding these welcome recent signs, the job market remains quite weak relative to historical norms,” he said. “After nearly two years of job gains, private payroll employment remains more than 5 million jobs below its previous peak.”
