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Subject: Ben Bernanke

Ben Shalom Bernanke (born December 13, 1953) is an American economist. Bernanke succeeded Alan Greenspan as the Chairman of the United States Federal Reserve on February 1, 2006. He was nominated for a second term by President Barack Obama in 2009 as the Chairman of the Federal Reserve. [Wikipedia]

US Bond Market

Consequences of a Democratic victory

Donkey economics bodes ill

The Democratic Party and its supporters have indicated a willingness to enact legislation that will reduce demand for bonds, while increasing supply: a recipe for lower bond prices and higher yields. Questionable economic policies are expected to include support for Fannie Mae, protectionist trade measures, and large pensions for unionized civil servants.

Federal Reserve

Can the Fed really manage inflation?

Is the Fed Wizard a Humbug?

It has been widely-publicized that Ben Bernanke, the new Federal Reserve Chairman, has strong views regarding the Federal Reserve Bank’s responsibility and ability to control inflation in the United States. Most of the discussion about interest rates seems to start with the assumption that interest rates do indeed control inflation and that the Federal Reserve’s ability to rig short-term rates gives it the power to stabilize the value of money.

But is this assumption reasonable?

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Featured articles on inside pages

Stock buybacks

The Stock Buyback Era evaluated

The buyback era began when the SEC allowed issuers to manipulate prices to give value to executive options. Stock buybacks since 1982, in 2008 dollars, total $5.77 trillion. More ...

Securities Analysis

Mark-to-market nonsense

Banks, by their nature, are insolvent, requiring government guarantees of their liabilities to protect against bank runs. Over the last fifty years, the percentage of bank liabilities guaranteed by the government has fallen considerably, while banks, free from the shackles of the Glass-Steagall Act, have become increasingly complex.
More ...

US Politics

America grows with legal immigration

Legal immigration has resulted in solid growth of the US population, despite declining birth rates and an increasing number of old people. This is good news for investors in stocks and real estate. Illegal immigration appears to be less than 5% of legal immigration, and legal immigration is at an all time high.
More ...

US equities

Sarbanes-Oxley and the shortage of equities

The Sarbanes-Oxley Act of 2002, by discouraging companies to go public, will exacerbate the shortage of equities, with a negative effect on the US stock market, although this was not the intent of its authors. Poorly drafted, ill-conceived, and unfair this law does little to protect investors.
More ...

US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

Signs of US losing its groove?

Thirty years ago, US income from abroad was more than double the amount of income that the US paid to the rest of the world. This year, or the next, this foreign income surplus may disappear forever. Is the US 'losing its groove'? More ...

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2010-12-13 13:50