tag:blogger.com,1999:blog-11719208.post6859440035088655376..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: What's Hot, What's NotTimhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-11719208.post-49903125429044780532009-01-04T14:25:00.000-08:002009-01-04T14:25:00.000-08:00I think it's fair to say that our gubment has set ...I think it's fair to say that our gubment has set all kinds of nasty new precedents over the last year.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-16133114556576508362009-01-04T12:54:00.000-08:002009-01-04T12:54:00.000-08:00Just read this and wondered if it was on the radar...Just read this and wondered if it was on the radar anywhere?<BR/><BR/>>> <A HREF="http://uk.reuters.com/article/companyNewsMolt/idUKTRE50306H20090104" REL="nofollow">Fed has abandoned monetary policy, critic says</A><BR/><BR/>FYI: Taylor said the U.S. Congress has a legitimate right to demand a say in who the Fed lends money to. The outcome would be "radical reform" that would risk monetary policy independence, he said.<BR/><BR/>This concern was echoed somewhat by the president of the St Louis Federal Reserve Bank, James Bullard, who also took part in the panel discussion. He said the close collaboration between the Fed and U.S. Treasury in fighting the crisis could have unintended consequences.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-22705507948566231932009-01-04T12:37:00.000-08:002009-01-04T12:37:00.000-08:00Happy 2009.The hot thing I'm still looking at is a...Happy 2009.<BR/><BR/>The hot thing I'm still looking at is a broken Treasury yield curve and trying to make sense as to how long that will take to be mended and thus how long it will take people to re-value the value of money. This systemic failure may well be a $15 Trillion problem connected to market inefficiencies that could be three times that, thus it seems highly unlikely that any Obama-nium-like stimulus attempt, will fall far short of what will be needed to <A HREF="http://www.americanheart.org/presenter.jhtml?identifier=4483" REL="nofollow">shock</A> the patient back to robust health.<BR/><BR/>I found these old tid-bits hanging around which set a tone for the pending recovery which will have headwinds of ZIRP, non-existent Treasury yields, diminished dividends and meaningless bonds, worthless stocks that have highly limited growth and a destabilized housing market -- linked to increased foreclosures that are linked to increased unemployment and immobility.<BR/><BR/>1. Using a new measure of house prices, the Fed now says consumers have lost a staggering $7.1 trillion in net worth since the third quarter of 2007. <BR/><BR/>2. The equity sell-off has eviscerated some $4.6 trillion of global stock market wealth in the past three weeks alone, according to the market capitalization loss on MSCI's main world equity index.<BR/><BR/>> I guess I'm somewhat with Roubini and thinking that 2009 will be somewhat of a wash, i.e, not a crash and not a turn around, but just continued bad news that will be priced in (then ignored) while cash-burn adds to volatility and stagflation like purgatory. 2010, on the other hand will a time to dig out from the next mess: <A HREF="http://www.timesonline.co.uk/tol/news/world/us_and_americas/article5444466.ece" REL="nofollow">Fears over earthquake 'swarm' at Yellowstone National Park</A>Anonymousnoreply@blogger.com