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Bilifuduo (98.27)

Federal Reserve Still Stuck?

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July 01, 2012 – Comments (3)

recent article from Reuters shows the clear divide between top Federal Reserve officials concerning the appropriate response of the Federal Reserve in spurring economic growth. Although the Federal Reserve recently extended Operation Twist, it has not initiated a new round of quantitative easing as many in the investment world have hoped.

One one side are officials such as Atlanta Federal Reserve leader Dennis Lockhart, who only believes the Federal Reserve should act should the situation in Europe or at home get more dire. On the other side are officials such as Chicago Federal Reserve Bank President Charles Evans, who argues that an aggressive approach needs to be adopted by the Federal Reserve. Of course, many question the very efffectiveness of quantitative easing and programs such as Operation Twist by the Federal Reserve.

 

For example, analyst Dick Bove recently came out and said that monetary easing won't nearly be as effective as deregulation of the banking industry. Because deregulation/lack of regulation enforcement worked so well in the years leading up to 2007...

 

For information on the probablity of QE3 by the Federal Reserve:  here.

3 Comments – Post Your Own

#1) On July 02, 2012 at 1:44 PM, mtf00l (45.02) wrote:

From the movie The Fifth Element;

"The President has asked that we fire 500,000"  "Fire one million" " he only asked..."  "Fire one million"

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#2) On July 02, 2012 at 1:57 PM, outoffocus (22.89) wrote:

"For example, analyst Dick Bove recently came out and said that monetary easing won't nearly be as effective as deregulation of the banking industry."

Really?  I mean really? Everyone seems to think that if you give special favors to their industry that it will singlehandedly restore our economy. Oh and by the way, this must be done at the expense of everyone else.   This is why our economy is going to hell in a handbasket...

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#3) On July 02, 2012 at 2:01 PM, outoffocus (22.89) wrote:

There are alot of good comments on this article but I think this comment sums my thoughts up nicely:

stopthecorruption | Jun 19, 2012 02:25 PM  ET

Is it just me or does every "solution" involve catering to the banks that played a large roll in creating our current problems?

Why not just let the markets correct so we can finally have price discovery and correct valuations. The avg investor/joe doesn't give a flying fawk about the banks.

 

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