Could central banks’ near-zero interest rate policies actually be hampering growth rather than stimulating it? PIMCO’s Bill Gross says that may well be the case. In an op-ed piece for the Financial Times, Gross says that “Historically, central banks have comfortably relied on a model which dictates that lower and lower yields will stimulate aggregate [...]
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Tag Archives: Federal Reserve
Ritholtz: “Austerians” Have It All Wrong
September 23, 2011
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Barry Ritholtz of FusionIQ and The Big Picture blog says that the Federal Reserve has done just about all it can do it fix the economy, and that changes to fiscal policy are needed to really get things moving in the right direction. But, he adds, many government officials have a track record of getting [...]
Read moreHussman: Recession Now “Virtually Certain”
September 13, 2011
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Fund manager John Hussman says a new recession — and a Greek debt default — are now “virtually certain”. In his latest market commentary, Hussman says that the markets seem to be viewing the current situation as a replay of the 2010 correction, and are holding out hope that the Federal Reserve will launch another [...]
Read moreGross: Fed Policies May Be Destroying Credit, Not Creating It
September 7, 2011
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The Federal Reserve has for the past few years maintained a low interest rate policy in order to make credit easier to obtain and growth easier to come by. But PIMCO’s Bill Gross says that policy — and the Fed’s announcement that it will continue it for the next two years — may be having [...]
Read moreSiegel: Stocks Cheap; Fed Needs to Do a Bit More for Economy
July 13, 2011
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Wharton Professor and author Jeremy Siegel says stocks remain “so cheap”, but he thinks the Federal Reserve needs to do a bit more to help the economy work through its recent soft patch. Siegel tells Bloomberg that he’s not talking about another round of quantitative easing, but instead other measures that would encourage banks to [...]
Read moreRogers: Let Greece Fail
June 30, 2011
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Commodities guru Jim Rogers says that Europe should let Greece default on its debt, and that the U.S. Federal Reserve needs to stop printing money, or else risk creating another serious financial crisis. Rogers tells Bloomberg that history shows the longer one delays dealing with a debt crisis, the more trouble it creates. He opposes [...]
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