Fed becoming worried about stimulus side effects

Comments (13)
WJL wrote:

Looks like foreign nations purchases of Treasuries are reducing.

Jan 03, 2013 4:56pm EST  --  Report as abuse
tmc wrote:

What were there concerns?

Jan 03, 2013 5:20pm EST  --  Report as abuse
reality-again wrote:

The problem isn’t that much with the known side effects of this unprecedented and to a certain extent extreme monetary policy, but with its yet unknown side effects.
Some of these side effects may be hiding in plain sight, as it often happens with problems that are so big that hardly anyone perceives them as problems.

Jan 03, 2013 5:29pm EST  --  Report as abuse
Rhino1 wrote:

Is one of the possible risks that other parts of the world come up with their own rating agencies?
The US has been looked after by their own agencies very well so far while these same agencies were very quick at discounting the rest of the world, especially Europe lately. The current AAA-rating guarantees enough demand for US bonds. What will happen when China’s and Europe’s (in the making) rating agencies will start to evaluate the relative security of US bonds? I think, interest rates will have to get a lot more attractive in order for international investors to be interested.

Jan 03, 2013 8:04pm EST  --  Report as abuse
venturen wrote:

Wall Street Wins people lose….The new FED motto.

Jan 03, 2013 11:41pm EST  --  Report as abuse
TheNewWorld wrote:

So who balls out the Fed? Anybody?

Jan 04, 2013 12:39am EST  --  Report as abuse
Rhino1 wrote:

A French revolution type thing is needed! Guillotine etc., the whole shebang.

Jan 04, 2013 4:36am EST  --  Report as abuse
Pete_Murphy wrote:

Interesting that this sudden emergence of concern over “side effects” coincides with the approach of the next debt ceiling battle. Could it be that the Fed is concerned that, if the debt ceiling isn’t raised, the federal government could choose to selectively default only on the debt held by the Fed, sparing foreign investors any pain? After all, unlike foreign investors, what recourse would the Fed have?

The Fed seems to be having trouble coming to grips with the fact that its “asset purchases” are nothing more than printing money, and the “assets” on their balance sheet (bad mortgages and treasuries that might not get paid back) look more like liabilities.

Jan 04, 2013 4:49am EST  --  Report as abuse
tmc wrote:

Crappy reporting. What were the FED’s concerns? Explicitly? Quote them? Or are you just “Making News”?

Jan 04, 2013 6:22am EST  --  Report as abuse
justinolcb wrote:

haha you guys are staring at the obvious – the FED’s concerns are the negative effects of printing 40 billion fake dollars monthly (its called inflation and thats the Obama plan for getting out of debt free) Yes, of course he will raise your taxes – he said so in his campagin and you still voted for him. But the FED will also continue to print valueless dollars until other currencies eclipse the value of the US dollar – there’s more tricks up the Chicago hustler’s sleeve, you can count on that!

Jan 04, 2013 6:55am EST  --  Report as abuse
justinolcb wrote:

btw now you know why fiscal conservatives vote NO so much – because Obama’s “solutions” have real consequences – you’ll see! yes, the whole world will see!

Jan 04, 2013 6:59am EST  --  Report as abuse
Globalman wrote:

This is new territory and no one truly knows the long term economic consequences. The economy needs jobs which require more investment by companies which requires less taxes and less uncertainity of the impact of federal regulations such as Obama care. The Fed cannot be expected to continue to offset for bad economic policies and unbridled fiscal spending of the White House and disagreements in Congress. The President wants control of the debt ceiling. The fact remains regardless of your political leanings, this President has accumulated more debt then any and all previous Administrations. To give him a blank check, makes our Founding Fathers to turn over in their graves,in horror. They wisely saw the separation of powers to be a key aspect of government.

Jan 04, 2013 7:58am EST  --  Report as abuse
Jameson4Lunch wrote:

It’s a great sign when even the US central bank is concerned about lending to the US government. Everything is fine. The economy is recovering. Seriously though, anyone with two brain cells to rub together should have been concerned in 2010 when the Fed was the main purchaser of US debt. No one else wanted it then, and now it’s being held afloat with a speculation bubble.

Jan 04, 2013 10:05am EST  --  Report as abuse
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