Bernanke Put

The markets seem to be hoping that good ol' helicopter Ben will come through with another round of quantitative easing (QE) tomorrow.  Doing so would extend the legacy of  the "Greespan Put" and probably ignite a speculative risk-on rally.  Analysts like Dave Rosenberg and Bill McBride have pointed out how equity markets seem to be dancing around the Fed's QE activities, shown for … Continue reading Bernanke Put

The Game Must Go On

This morning Ben Bernanke, Chairman of the Federal Reserve (the US central bank aka the Fed), delivered his semiannual report on monetary policy to Congress.  During the report, Bernanke said, “the possibility remains that the recent economic weakness may prove more persistent than expected, and that deflationary risks might reemerge, implying a need for additional policy support.”  … Continue reading The Game Must Go On

Where are the Fed’s Reserves?

The Federal Reserve System, more commonly known as the "Fed," is the central banking system in the United States.  As the term "central" implies, the Fed is the bank for other banks.  As such, it plays a very important role in maintaining the stability of our financial system.  Like other banks, the Fed basically uses a combination … Continue reading Where are the Fed’s Reserves?