Thursday, July 26, 2012

Tin Duy — Why Europe Matters to the US

...one thing is looking more certain day by day: The Fed should have been hitting their own panic button six weeks ago when it became clear their forecasts were well off the mark.
Read it at Tim Duy's Fed Watch
Why Europe Matters to the US
Tim Duy

4 comments:

Detroit Dan said...

He wants more "Fed easing". What do you think he means by this? Can the Fed encourage more private debt in the current economic climate? What is wrong with conventional macroeconomic discourse when meaningless terms such as "Fed easing" are tossed about as the obvious solution to our economic woes?

Tom Hickey said...

The only sense I can make of it is to lower rates further along the yield curve. The idea is to encourage spending on investment, and housing falls into the category of investment. Housing is creating a huge drag.

Otherwise?

Detroit Dan said...

But surely he knows that the effect of any further lowering of mortgage interest rates will be trivial. Just today, 30-year mortgage rates fell to a new record low of 3.49 percent, fergodsakes...

paul said...

These guys seem to think when you release the drag on the fishing reel it pushes the fish back into the water.