Ben Bernanke

Ben Bernanke

Jackson Hole'd - A New Monetary Order Looms

The title of this year’s Jackson Hole meeting – “Designing Resilient Monetary Policy Frameworks for the Future” – is a telling one. It is actually a call to a specific goal, rather than the typical generic one. You get the feeling that the Fed has something on its mind... Translation: Fed projections have been wrong, and the central bank doesn’t know how to make them any better in the future.

Global Stocks Decline Along With The Dollar, As Jackson Hole Begins

Global stocks declined broadly, led by European equities which fell for the first time this week while currency markets continued their subdued tone even as the recent 4-day rally in the USD appears to have topped out, as investors took to sidelines ahead of the Jackson Hole meeting which begins tonight. Japanese and Chinese stocks had suffered modest drops in Asia.  S&P 500 Index futures slipped 0.2%, continuing yesterday's modest selloff.

Goldman "Explains" Why Yellen Lost Credibility: "In Our View, The Fed Has Been Unlucky"

"The May 18 minutes surprised virtually everyone by guiding strongly toward a rate hike in June or July, and Chair Yellen reinforced this message in her remarks at Harvard University on May 27. But the weak May employment report released on June 3 and increased concern about the UK referendum again triggered a sharp pivot, putting on hold the notion of further hikes. These dramatic shifts have frustrated many market participants. In our view, the Fed has been unlucky."

Jeffrey Snider: All Signs Point To Systemic Reset

"... what’s happened in stocks is more a myth than actual reality. Investors in stocks are buying at ridiculous valuations based on the premise that the Fed can create a recovery through liquidity. And what 2014 and 2015 show us is that this simply wasn’t true! ...the longer the earnings recession lingers, the higher the risk that stock investors will realize that they’ve been following the wrong story all along!"

The Fear Economy: It Couldn't Possibly Happen Here But It Did

In the late 1990’s, economists attempted to get reacquainted with something that they previously believed was an artifact of long ago history. The plight of Japan during that decade had revived fears of deflation and depression. Some economists, those daring enough to challenge entrenched notions, began even to contemplate whether or not it could happen here.

Fed's Williams Calls For An Overhaul Of Monetary And Fiscal Policy... But There Is A Problem

According to John Williams, central banks and governments must come up with new monetary and fiscal policies to kickstart a global economy which is barely growing (thanks to 7 years of flawed monetary policy). "We can wait for the next storm and hope for better outcomes or prepare for them now and be ready." As a result, Williams believes that a major fiscal stimulus thrust is now critical to propel the US economy higher. And he is, mostly, right. There is just one problem...

BOJ Leaks September Statement To Ease Investor Concerns That It May Be Tapering QE

To quell any speculation that it may be easing off in its "inflation boosting" monetization efforts, moments ago the BOJ "leaked" what its September statement would be, and as Reuters reported the BOJ has "already prepared a preliminary outline of a "comprehensive" assessment of its policies due next month that will maintain a pledge to hit its 2 percent inflation target at the earliest date possible, sources familiar with its thinking said." The general tone would suggest that a tapering of the BOJ's massive stimulus program is unlikely.

With All Eyes On Tonight's BOJ Announcement, A "Minor" Snag Emerges

With all eyes on the BOJ's decision in several hours, an announcement which is expected to contain some component of government deficit funding attached to it, or helicopter-lite, a "minor" snag has emerged in what Japan has affectionately titled the "emergency, peace of mind realization, overall spending measures" fiscal package, namely that only about a quarter of the total JPY 28 trillion in new stimulus is in the form of actual spending.