What We're Reading

Admin

Larry Summers On QE And Fed Policy

September is guaranteed to be packed with drama for the markets wall of worry.  As if Syrian tensions weren't scary enough.  Reuters outlines, not only will non-farm payrolls be highly important (will the Fed taper or no based on it) but German elections, Abe's 3rd phase of economic policy and of course, Obama's nomination for the next Fed Chairman.  (yes I'm completely ignoring the debt ceiling as a concern because it's not)

A few months back, it was Janet Yellen everyone felt would replace good old Ben Bernanke as the next Federal Reserve Chairman however as September nears, it's Larry Summers who has pulled away from the pack as the 5/2 odds on favorite, at least according to PaddyPower

Not being particularly interested in his resume bur rather what his views were on monetary policy and the like, I pulled these quotes from ft.com which should lend insight into Mr. Summer's beliefs on QE and Fed intervention.  Clearly he's slightly more hawkish when it comes to the use of QE.  I particularly liked his comment "if we have slow growth, we're not going to keep thinking 5.5% unemployment is normal".   Thank you Larry for admitting what the rest of us already know.  7.5% is the new 5.5%.    Of major interest is also Mr. Summers, while not thrilled about QE, does endorse the use of stimulus packages so spur spending and job growth.......which the market would love.  I can already hear the cheers for infrastructure stimulus once again.   So the guy's not all bad. 

Just as Obama was left to clean up Bush's mess, now it appears Summers will be left to taper QE and dig out of the Fed's debt bubble.  I don't think they could pay me enough to take the job but truly if they tap you to "serve your Country", can you actually say no?  Please add any thoughts or comments you may have below.  Enjoy.

E-mail me when people leave their comments –

You need to be a member of StockBuz to add comments!

Join StockBuz

We welcome you to post a blog entry, oped or share your daily reading with us as long as it is relevant to the topic of investing and not an attempt to sell a product, proprietary strategy, platform or other service. Please provide links to any research data and if re-posting other articles, give credit where credit is due providing a back link to the original site.

300 words minimum per post. You may also sort by category or search by topic. Don't forget to comment and please "share" via Facebook, Twitter and Google+. If you have any questions, please contact us.

FOLLOW STOCKBUZ

__________________

This is a member-supported site. Please donate when you can to help pay the rent. Thank you!

Stay Informed. Sign up for the FREE StockBuz eNewsletter

________________

Investing involves substantial risk. All content is subject to StockBuz disclaimer.

Create Income With Option Spreads

All content on StockBuz.net is subject to disclaimer and Terms of Service