tag:blogger.com,1999:blog-16264003691028288592024-03-05T19:07:47.379+08:00Bursa Malaysia (KLSE) Daily Info Edge ZoneMalaysia Forex | KLSE Index | FTSE KLCI | Bursa Malaysia | MayBank Forex | Malaysia Stock Trading | Malaysia ShareUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-1626400369102828859.post-49689266636791051792012-05-04T07:39:00.000+08:002012-05-04T07:39:46.500+08:00A Jelly Donut is a yummy mid-afternoon energy boost<div class="separator" style="clear: both; text-align: center;"><a href="http://2.bp.blogspot.com/-_8nDOJD2KCM/T6MXLsuPbPI/AAAAAAAAGJM/5M8vMTvCZb0/s1600/bernanke.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="202" src="http://2.bp.blogspot.com/-_8nDOJD2KCM/T6MXLsuPbPI/AAAAAAAAGJM/5M8vMTvCZb0/s320/bernanke.jpg" width="320" /></a></div>Federal Reserve Chairman Ben Bernanke appears to have a penchant for “jelly donut” monetary policy, according to noted hedge fund manager David Einhorn.<br />
“A Jelly Donut is a yummy mid-afternoon energy boost. Two Jelly Donuts are an indulgent breakfast. Three Jelly Donuts may induce a tummy ache. Six Jelly Donuts — that’s an eating disorder. Twelve Jelly Donuts is fraternity pledge hazing,” Einhorn wrote in an article for the Huffington Post.<br />
“My point is that you can have too much of a good thing and overdoses are destructive,” Einhorn continued. “Chairman Bernanke is presently force-feeding us what seems like the 36th Jelly Donut of easy money and wondering why it isn’t giving us energy or making us feel better.”<br />
Einhorn, president and co-founder of Greenlight Capital, went on to take Bernanke to task for his misguided and reckless economic theories that have helped prevent the U.S. economy from achieving a sustainable recovery.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1626400369102828859.post-30796941195009079632011-09-03T06:28:00.002+08:002011-09-03T06:32:30.720+08:00Worse than expected jobs report<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://1.bp.blogspot.com/-Rf9X6gsZXuk/TmFY7na_QtI/AAAAAAAAEwo/1y6QagaHcl0/s1600/bernanke-10-300x200.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 300px; height: 200px;" src="http://1.bp.blogspot.com/-Rf9X6gsZXuk/TmFY7na_QtI/AAAAAAAAEwo/1y6QagaHcl0/s400/bernanke-10-300x200.jpg" alt="" id="BLOGGER_PHOTO_ID_5647893188917019346" border="0" /></a>Following this morning’s worse than expected jobs report, Goldman Sachs’ chief U.S. economist Jan Hatzius predicted that Ben Bernanke and his colleagues at the Federal Reserve will step up their level of accommodative monetary policies. <p>In a note to clients, the Goldman economist <a title="monetary policy response" href="http://www.zerohedge.com/news/goldmans-response-nfp-miss-here-comes-qe3" target="_blank">wrote</a> the following:</p> <p><em>BOTTOM LINE: We now look for the FOMC to announce a lengthening in the average maturity of its balance sheet at the September 20-21 meeting.</em></p> <p><em>MAIN POINTS:</em></p> <p><em>1. Following today’s worse-than-expected jobs report, we now look for the FOMC to announce a lengthening of the average maturity of the Fed’s balance sheet at the September 20-21 meeting, with sales of relatively short-dated Treasuries and purchases of relatively long-dated Treasuries.</em></p> <p>While such a measure would differ from the first two rounds of quantitative easing – in that the Federal would not be expanding the size of its balance sheet this time – the fact that the Fed would be purchasing Treasuries is likely to cause many investors and economists to label this move as QE3.</p> <p>Moreover, such a decision by the Fed could establish a precedent for further easing, such as outright Treasury purchases similar in nature to that of QE1 and QE2, which would certainly qualify as QE3.</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1626400369102828859.post-74902900034851865502011-08-13T08:11:00.001+08:002011-08-13T08:12:44.523+08:00Bernanke doesn’t seem to understand that he is 100% trapped<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/-kIAhMAwqNQ0/TkXBdFl_7mI/AAAAAAAAEoA/3WuLiF7D8qc/s1600/bernanke-pic1.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 300px;" src="http://3.bp.blogspot.com/-kIAhMAwqNQ0/TkXBdFl_7mI/AAAAAAAAEoA/3WuLiF7D8qc/s400/bernanke-pic1.jpg" alt="" id="BLOGGER_PHOTO_ID_5640126813813337698" border="0" /></a>The above title refers to comments from Bill Fleckenstein, an investor and market pundit who has been bullish on gold and a strong critic of the Federal Reserve for many years. <p>In his latest article for MSN Money, Fleckenstein wrote that “Bernanke doesn’t seem to understand that he is 100% trapped. Either he needs to spring more quantitative easing (i.e., QE3) soon, or stocks will crash more and he will have to do it later anyway. For a guy committed to printing our way to prosperity, he sure doesn’t seem to understand the monster that he and his predecessor, Alan Greenspan, have created.”</p> <p>Fleckenstein went on to talk about the impact of the European sovereign debt crisis on the markets and economy, noting that “No matter what the Fed does, though, it can’t fix the problems inside the European banking system, nor can it cure the potential insolvency of European sovereign debt.”</p> <p>“The scary part about Europe is that, at every step along the way, the European Central Bank, led by Jean-Claude Trichet, and the heads of the European Union have been a day late and a euro short trying to get out in front of the issues they face,” he continued. ”That is partly due to the inherent flaw of the euro system, namely, the difficulty of getting disparate countries to agree to the same policies…All this leaves us in a mode in which anything in any market can trade anywhere.”</p> <p>Lastly, he wrote that “The potential bright side to all of the carnage is that it will force us to start dealing with our problems and hopefully scare us enough that we find the courage to solve them. However, in the short run (i.e., the next year or two), turmoil and pain will likely continue, as there are no short-term solutions to the litany of economic and financial problems that we — and the rest of the world — face.”</p> <p>
<br /></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1626400369102828859.post-17329292026523082482011-07-18T07:56:00.002+08:002011-07-18T08:01:08.685+08:00Ben Bernanke’s hypocrisy was on full display<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/-eKSeLTvqUmU/TiN3ipmofvI/AAAAAAAAEds/zN96VA16mzs/s1600/bernanke-10-300x200.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 300px; height: 200px;" src="http://4.bp.blogspot.com/-eKSeLTvqUmU/TiN3ipmofvI/AAAAAAAAEds/zN96VA16mzs/s400/bernanke-10-300x200.jpg" alt="" id="BLOGGER_PHOTO_ID_5630475396310400754" border="0" /></a>Ben Bernanke’s hypocrisy was on full display on Friday as he chided Congress over a variety of fiscal policy matters. <p>“I only ask … as Congress looks at the timing and composition of its changes to the budget, that it does take into account that in the very near term the recovery is still rather fragile, and that sharp and excessive cuts in the very short term would be potentially damaging to that recovery.”</p> <p>The Fed Chairman, who has on numerous occasions told Congress not to interfere in monetary policy, “warned Congress on excessive budget deficits, warned Congress on reducing deficits too quickly, and warned Congress about not hiking the debt ceiling,” according to Mike “Mish” Shedlock, author of <em>Mish’s Global Economic Trend Analysis</em>.</p> <p>Mish – a long-time critic of the Federal Reserve and Bernanke in particular – went on to <a title="monetary policy criticism" href="http://globaleconomicanalysis.blogspot.com/2011/07/bernanke-interferes-in-fiscal-policy.html" target="_blank">say</a> that “After bitching and moaning on numerous occasions about Congress interfering in monetary policy, Bernanke repeatedly plunges headlong into fiscal policy, hoping to place the blame for the next collapse on anyone other than the Fed.”</p> <p>While Congress clearly deserves its fair share of the blame for the United States’ economic problems, so does the Federal Reserve. The fact that the most fervent supporter of money printing in the history of mankind is lecturing others on fiscal responsibility illustrates the severity of Bernanke’s hypocrisy and ego.</p> <p>He is just another can-kicking advocate who refuses to acknowledge the structural problems in the economy, which are rooted heavily in the <a title="U.S. central bank news" href="http://www.goldalert.com/the-fed" target="_self">Federal Reserve’s</a> ability to create money out of thin air.</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1626400369102828859.post-47480391120774647402011-07-13T17:59:00.001+08:002011-07-13T18:00:49.391+08:00Federal Reserve plans to begin its exit strategy<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/-rPnLJW065x8/Th1swwiBzVI/AAAAAAAAEcU/ZGdeANMTlPI/s1600/bernanke.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 253px;" src="http://4.bp.blogspot.com/-rPnLJW065x8/Th1swwiBzVI/AAAAAAAAEcU/ZGdeANMTlPI/s400/bernanke.jpg" alt="" id="BLOGGER_PHOTO_ID_5628774694200134994" border="0" /></a>The latest Fed minutes revealed the manner in which Chairman Ben Bernanke and the Federal Reserve plans to begin its exit strategy, but not when it will do so. <p>The proposed order for the exit strategy would be to initially halt the reinvestment of principal on bonds the Fed holds, followed by altering the forward guidance on the federal funds rate. Next would come the actual increase of the target for the federal funds rate, and finally the selling of agency securities after the first rate increase.</p> <p>The initial reaction in financial markets consisted of:</p> <p>gold surged above $1,570, within a fraction of its all-time high</p> <p>the U.S. Dollar Index sunk to an intra-day low near 76.10</p> <p>U.S. equities turned modestly positive, with the Dow Jones Industrial Average up 0.2% at 12,530.81</p> <p>U.S. Treasuries showed a muted reaction, remaining fractionally higher</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1626400369102828859.post-35842317786200201582011-07-02T11:26:00.002+08:002011-07-02T11:29:39.315+08:00Greenspan Says QE Ineffective, Greece Will Still Default<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/-7v7Ixp6ZtcQ/Tg6QgqahoRI/AAAAAAAAEXg/5PnmzFq7cP0/s1600/QE3.jpeg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 177px; height: 147px;" src="http://4.bp.blogspot.com/-7v7Ixp6ZtcQ/Tg6QgqahoRI/AAAAAAAAEXg/5PnmzFq7cP0/s400/QE3.jpeg" alt="" id="BLOGGER_PHOTO_ID_5624591875448086802" border="0" /></a>Alan Greenspan provided his latest thoughts on a variety of economic topics, including quantitative easing and the potential for a Greek default. <p>The former Federal Reserve Chairman stated in a CNBC interview that the Fed’s quantitative easing programs under Ben Bernanke have done little to increase lending and stimulate the U.S. economy. ”There is no evidence that huge inflow of money into the system basically worked. It obviously had some effect on the exchange rate and the exchange rate was a critical issue in export expansion. Aside from that, I am ill-aware of anything that really worked. Not only QE2 but QE1.”</p> <p>Going forward, Greenspan<span style="text-decoration: underline;"> said</span> he “would be surprised if there was a QE3″ due to the damaging effects it could have on the value of the U.S. dollar.</p> <p>Greenspan went on to discuss the sovereign debt crisis in Greece, noting that a Greek default is eventually likely. A default would substantially weaken the profitability of U.S. companies, because of their large economic commitments to Europe, which holds a significant portion of Greek debt.</p> <p>The former Fed Chairman also talked about the U.S. deficit, predicting that Congress will not reach an agreement on raising the debt ceiling by the August 2 deadline.</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1626400369102828859.post-34848869333599444692011-06-25T09:31:00.002+08:002011-06-25T09:50:56.844+08:00Ben Bernanke’s approval rating reached its lowest level in two years<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/-AizD9s1-JO4/TgU--ArMD0I/AAAAAAAAEVA/boUgjGgmHK4/s1600/66306-chairman-of-the-federal-reserve-ben-bernanke-300x226.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 300px; height: 226px;" src="http://4.bp.blogspot.com/-AizD9s1-JO4/TgU--ArMD0I/AAAAAAAAEVA/boUgjGgmHK4/s400/66306-chairman-of-the-federal-reserve-ben-bernanke-300x226.jpg" alt="" id="BLOGGER_PHOTO_ID_5621968944895889218" border="0" /></a>Fed Chairman Ben Bernanke’s approval rating reached its lowest level in two years, according to the latest Bloomberg National Poll. <p>In the most recent <a title="lack of confidence in Fed Chairman" href="http://www.bloomberg.com/news/2011-06-24/bernanke-public-approval-falls-to-lowest.html" target="_blank">poll</a>, conducted June 17-20, 26% of respondents viewed Bernanke unfavorably, 30% favorably, and 44% were unsure. This compares quite poorly to September 2009, when the Fed Chairman received a 41% approval rating and only 22% disapproved.</p> <p>Other worrisome results from the poll included:</p> <p>- 66% said the U.S. is on the “wrong track”</p> <p>- 44% said they are worse off now than at the beginning of 2009</p> <p>- 55% expect their children to have a lower standard of living than their parents do today</p> <p>The poll was conducted by Des Moines, Iowa-based Selzer & Co., and is comprised of interviews with 1,000 U.S. adults. It has a margin of error of +/- 3.1 percentage points.</p> <p>While the poll is closely followed by economists and investors, if one wants a more real-time estimate of Bernanke’s approval rating, he/she has to look no further than the price of gold.</p> <p>As Marc Faber stated this week, “Not to own any gold is to trust central bankers, and that you don’t want to do in your life.”</p>Unknownnoreply@blogger.com0