June 3, 2016
Bloomberg Editorial Board: What the Fed Should Do Next
It needs to avoid the suspicion that it's dithering and that super-low interest rates will be available indefinitely.
Just because I write an Illusion of Prosperity blog, am a long-term holder of long-term US bonds, Japan's short-term interest rates have been below 1% for more than 20 years, our short-term interest rates have been below 1% for more than 7 years, a record $10 trillion in global debt has negative yields, our banking system must endure negative interest rate stress tests in order to boost dividends or buy back shares, and Janet Yellen won't rule out negative interest rates as a monetary policy tool, it does not necessarily mean that I am suspicious.
In fact, I could believe that the future's so bright, I gotta wear shades!
The Market Ticker - Maybe The Snowflakes Are Right? - *What if "Pajama Boy" is right?* GDP came in pretty punky this morning, and a big part of it was consumption -- consumer spending. Much has been said, i...
2 hours ago