Economy | timiacono.com - Part 30

It’s Yellen Time

The pregrame warm-up is about done and it’s game time for Fed Vice Chair Janet Yellen who, absent any Albert Brooks style perspiration problems (skip to the 4 minute mark), should be easily confirmed after appearing before the Senate Banking Committee today.

Not that it will make any difference, but the timing of yesterday’s thoughtful Wall Street Journal op-ed by former Fed money printing manager Andrew Huszar was pretty good.

This Wall Street Journal op-ed by Andrew Huszar, formerly a Morgan Stanley managing director and head of the Federal Reserve’s $1+ trillion MBS purchase program in 2009-2010, had been set aside for reading later, but, given how it’s been the subject of so much talk over the last 24 hours, it seemed worth taking a look at without any further delay.

It begins…

BernankeI can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.

That’s probably the best opening paragraph of any article I’ve read in at least a few years and it gets even better from there, something that you wouldn’t think is possible.

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Marc Faber on the “Endgame”

From last Friday, Gloom, Boom, and Doomer Marc Faber talks about the endgame for central banks as they attempt to keep asset prices inflated.

He sounds like an Austrian economist (or at least a Swiss one) talking about the crack-up boom phase of a credit expansion when noting, “It will end badly. The only question is whether we will have a minor economic crisis and then huge money printing …  or do we get into some inflationary spiral first”.

Payrolls Up 204K, Jobless Rate Rises to 7.3%

If it weren’t for the large and growing piles of paperwork related to our ongoing family emergency here in Pennsylvania that has occupied me for most of the last month, there might be more to offer about today’s labor report than just the chart below.

About all I can say is the household survey looked as bad (almost a million people left the labor force) as the institutional survey looked good (3-month annualized job growth of ~2.5 million) and I’m not looking forward to hearing “Dectaper” for the next month or so.

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