quantitative easing

In 2008 the Fed Bought Bonds (and Kept Buying and Buying). Will it Buy Equities Now?

Quantitative Easing for Stocks [Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire.] With the Dow in free fall, investors are looking to the cavalry (the Fed) to once again...
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The Stock Market That Can’t Go Down

One Sure Thing When it Comes to Investing (Really) “Federal Reserve Cuts Interest Rates for Third Time in 2019” –Headline, The NYT (10/30/19). Let me see if I’ve got this straight: If the economy is strong, corporate earnings are growing, unemployment low, etc. . . . the market goes up because the fundamentals are good....
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Mr. Krugman, Please Define “Not Necessarily That Big”

Lehman’s “Not So Big” $600,000,000,000(!) Balance Sheet “The 2008 financial crisis itself was centered not on big banks but on “shadow banks” like Lehman Brothers that weren’t necessarily that big.” –Paul Krugman, “Sanders Over the Edge”; The NYT (4/8/2016) No matter what you think of big banks or who caused The 2008 Crash, I think...
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Is the Fed Put Kaput?

Markets Now Testing 3 Hypotheses “Don’t fight the Fed.” –Wall Street mantra “Don’t fight the Fed . . . unless the Fed is out of ammo.” –2015 update(?) I don’t know if the Fed put is kaput, but the Chinese put — if there ever was one — certainly appears to be history. What I’m referring...
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Mortgages Could Never Sport a Negative Yield, Right? (Right??) — or, “Buy High . . Sell Even Higher”

Making the Mattress Look Good “Investors are willing to lose a little to make sure they don’t lose a lot.” –“Accentuate the Negative”; The Economist (1/24/2015) Could today’s already infinitesimal interest rates ever actually fall below zero, to the point where mortgages sport negative interest rates? My knee jerk reaction is, “Of course not!  That...
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2013 Person of the Year: Federal Reserve Chair Ben Bernanke

“For Better” . . . For Now  “The person, group, idea or object that for better or for worse . . . has done the most to influence the events of the year.”  –Time magazine’s criteria for selecting its “Person of the Year.” My selection for 2013 person of the year is Federal Reserve Chair...
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