Archive for the 'Federal Reserve' Category

A Happy New Year message from Peter Schiff: The value of your house is still 20% too high.

By mw | Related entries in Bad Decisions, Economic recovery, Economy, Federal Reserve, Fiscal stimulus, Housing

When an economic bubble bursts, normalcy can only return if the price excesses created during the bubble are wrung out of the market. A recession is often a painful but necessary market mechanism that corrects the pricing distortion and consequent misallocation of capital that occurs in a bubble. When government intervention prevents the mispriced asset class from fully deflating, capital continues to be misallocated and economic malaise lingers on. This is the takeaway message from Peter Schiff’s Wall Street Journal editorial.

December 31st, 2010 | Permalink| 22 Comments »

Carving the Currency

By mw | Related entries in Bad Decisions, Ben Bernanke, Economy, Federal Reserve, Fiscal Responsibility, geithner, Money

Observing the carving of our currency, as it is sliced by administration fiscal policy and diced by Fed monetary policy.

November 26th, 2010 | Permalink| 16 Comments »

How bad is the recession, really? The Federal Reserve’s latest forecast

By John Burke | Related entries in Economy, Federal Reserve, recession

On February 1st, I noted in this post that, based on the data in hand and reliable projections, the recession seemed to be on track to become the worst downturn since the back-to-back recessions of 1980-82, but that it was a huge exaggeration — and unecessarily alarmist — to say that it’s the worst since the […]

February 19th, 2009 | Permalink| 9 Comments »