Fwd: FWC: TARGETING ASSET VALUES ... AGAIN? By David Rosenberg

ECRI WLI & Growth Rate Both Up Again

-------- Original Message --------

Subject:	FWC: TARGETING ASSET VALUES ... AGAIN? By David Rosenberg
Date:	Thu, 7 Oct 2010 15:32:51 -0700
From:	Jas Jain

TARGETING ASSET VALUES ... AGAIN? By David Rosenberg

The Greenspan-Bernanke Fed, especially since 1997, has been in Asset Inflation business to help Bankrupters and Fraudsters of New York City and Corporate Crooks of America perpetrate fraud on the public. Only economics ignoramuses can fail to see that the cabal that dominates financial manipulation also dominates the Fed and other govt polices related to the economy. The "bubbles" were driven by fraud. Only dopes believe that keeping housing prices higher, artificially, via various govt polices is good thing. 

Jas

-x-x-x-x-x-x-x-x-x-

David Rosenberg; 10/05/10

TARGETING ASSET VALUES ... AGAIN?

Brian Sack, a senior official at the New York Fed, had this to say about the powers of quantitative easing in a speech he just delivered:

"Some observers have argued that balance sheet changes, even if they influence longer-term interest rates, will not affect the economy because the transmission mechanism is broken. This point is overstated in my view. It is true that certain aspects of the transmission mechanism are clogged because of the credit constraints facing some households and businesses, and it is true that monetary policy cannot directly target those parties that are the most constrained. Nevertheless, balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be. It seems highly unlikely that the economy is completely insensitive to borrowing costs and wealth, or to other changes in broad financial conditions."

I just love that one comment to the effect that QE "adds to household wealth by keeping asset prices higher than they otherwise would be." When will these guys ever learn that maybe, just maybe, these Fed policies aimed at targeting asset prices at levels above their intrinsic values is probably not in the best interests of the nation? As our friend Marc Faber likes to say, the "Bernanke put" is cut from the same cloth as the fabled "Greenspan put" — only the strike price is different.

• Vanguard Lowers Admiral Shares Minimum to $10,000
  
  
• ECRI WLI & Growth Rate Both Up Again
  
  
• Equity, Bond & Money Market Fund Flows - Yearly Totals