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Posts Tagged ‘quantitative easing’

“Sabotage” says U.S. Senator

August 4th, 2017 Comments off
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U. S. Senator Ron Johnson, (R-WI), official photo.

I think there has been a concerted effort to sabotage this administration since day one on the part of many in the media and of course our Democrat colleagues in the House and Senate,” Sen. Ron Johnson (R-Wis.) said to Newsmax TV.

So obviously what they’re trying to do is just slow down the confirmation process,” Johnson said.

That does two things,” the senator explained, “that clogs the Senate calendar in terms of floor time to bring up other measures for debate. We just end up being almost 100 percent in the personnel business, and it prevents this administration from staffing itself.”

Deep State Revolt?

Johnson isn’t alone is raising an alarm over “media organizations and Democratic lawmakers” trying to bring down the Trump Presidency.

Industry sources tell MHProNews that there are several signs that the administration is being “resisted” in a metro area largely made up of Democratic voters.

Or that some GOP senators are essentially siding with Democrats in an effort to sideline the administration’s agenda.

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Image credit, Google News.

Under Reported

The 6 month economic report by Julia Granowicz last night underscored the progress made, based on left-of-center MarketWatch’s reporting. 

TrumponomicsFirst6Months9ChartsDailyBusinessNewsManufacturedHousingIndustryMHProNews

It is telling that it has become important to note which direction a media source tilts, in order for readers to be able to discern the agenda behind the reports. This goes to Senator Ron Johnson’s opening, quoted comments. To the numbers in last night’s report, click the image above.

But what goes unmentioned – even in many right-of-center media – is that the record market gains are taking place absent an artificial stimulus.

As was widely reported for years – but has gone largely unmentioned in mainstream media for months – is that the Federal Reserve bought assets as an artificial way of boosting the stock markets during the Obama Administration years.

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One often has to go to business focused outlets to find such data. What the above means is that the record stock market gains are taking place in spite of the ‘unwinding’ of the assets that the Fed purchased to support the markets during the Obama years.  Translation, the Trump agenda is working…despite the open revolt Senator Johnson and others point out. Screen captures credit, Google News.

The gains being made now are taking place even as the reverse policy by the Fed has begun. CNBC reported in April that the “Federal Reserve officials said the shedding of the $4.5 trillion in bonds the central bank is” underway.

Those assets were purchased (monetized) by the Fed during three rounds of what they called “quantitative easing.

Sabotage…Leaks, Leaks

Fox News reports that there have been some 125 leaks since the president took office, about 2 leaks on average for every 3 days. 

A number of those leaks are on national security related issues, designed to embarrass and undermine the presidency. Amazon’s Jeff Bezos media asset, the Washington Post, published transcripts this week of two calls between Mexican and Australian leaders and President Trump.  While those phone discussions took place months ago, nevertheless, this is said to be a first in American politics.

The chilling effect that might have on discussions between foreign leaders and the U.S. can’t be underestimated.

PamDannerMHARRManufacturedHousingAssocRegulatoryReform554x581With all of that D.C. “Deep State,” the “swamp” drama, it is not difficult to imagine that issues like Pam Danner keeping her job at HUD could seem minor to those outside of the modest manufactured housing industry.

Chris Wallace – son of CBS’ 60 Minutes icon Mike Wallace and Fox News Sunday host has said this is an unprecedented effort to undermine a valid election.

With that much artificially generated chaos, no wonder President Trump went to West Virginia last night for a campaign style rally. 

Campaign Style Rally

ABC News said at last night’s rally, President Trump labeled “The Russia story is a total fabrication. It’s just an excuse for the greatest loss in the history of American politics.”

The LA Times said, “Blaming Democrats even as the Justice Department special counsel has advanced his investigation, Trump said, “It just makes them feel better when they have nothing else to talk about.”


Trump had what the left-of-center LA Times called an “overflow crowd of supporters in a 9,000-capacity Huntington, W.Va., arena” which broke into the “chant “Lock her up!” and then paused to encourage their taunts at Hillary Clinton, his 2016 Democratic rival, just as he first did more than a year ago at the Republican convention that nominated him for president.”

The Daily Business News will continue to report on the complex efforts to derail the Trump Administration, and its “American Business,” and “American Workers” first agenda. ## (News, analysis.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

Fed’s St. Louis Veep Questions Fed Policies

August 26th, 2015 Comments off

steven_williamson__st_louis_fed_veepStephen D. Williamson, vice president of the St. Louis Federal Reserve, says the Fed’s quantitative easing policy of purchasing monthly debts to stimulate the economy following the Great Recession was not all that beneficial to economic improvement. He says the zero interest rates since 2008 have not promoted good inflation as intended, according to cnbc.

There is no work, to my knowledge, that establishes a link from QE to the ultimate goals of the Fed—inflation and real economic activity. Indeed, casual evidence suggests that QE has been ineffective in increasing inflation,” Williamson wrote.

He says gross domestic product (GDP) has not increased beyond 2.5 percent in any year, and wage gains have yet to rise above two percent. The biggest effect of QE has been on the stock market, as MHProNews understands. Inflation for much of the U. S. and the developed world has changed little, despite the Fed thinking that releasing the QE money into the economy would drive up prices and inflation.

The central banker thinks maintaining the interest rate at zero will eventually lead to an increase in inflation, but that never happens, says Williamson.

While the Fed has set targets for raising interest rates, it continues to move the targets—namely, the unemployment rate and the rate of inflation—using the term “extended period” for how long it will wait until it raises them. What the market does not like is uncertainty, and the Fed’s policy of changing the thresholds and moving the targets leaves a muddled message.

Most recently, the Fed has suggested September as the month for raising the rates, but in light of the recent turndown in the stock market, MHProNews has learned some strategists believe the rates will not be raised before December, or perhaps next spring. ##

(Photo credit: cnbc–St. Louis Federal Reserve Vice-president Stephen Williamson)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

The Avoidance of the Rule of Law by Dodd-Frank

July 24th, 2015 Comments off

dodd_frank___bloombergbusinessweek___creditWriting in wsj, former Chairman of the Senate Banking Committee Phil Gramm, noting the effects of Dodd-Frank on the banking system, says although the Federal Reserve’s quantitative easing has increased bank reserves, lending has barely risen.

The Federal Deposit Insurance Corp. reports that 1,341 commercial banks have closed since 2010, but only two new ones have been chartered, compared to the approximately 2,500 that started in the 25 years before the Great Recession. He says community banks have hired 50 percent more compliance officers to deal with Dodd-Frank while the industry itself has only increased employment by five percent.

Before Dodd-Frank regulators were generally responsive to Congress which controlled appropriations thereby instilling a series of checks and balance within the system. Dodd-Frank, however, has given regulators the right to set rules on their own, which creates an air of uncertainty among lenders, leading to an overall pullback on lending.

While bipartisan commissions implemented rules in the past, the Consumer Financial Protection Bureau (CFPB), authorized by Dodd-Frank, is under the wing of the Federal Reserve and not in the least beholden to Congress for appropriations or any kind of regulation. It’s funding is automatic, away from the scope of elected officials. Its authority extends to banning services and products offered by financial institutions, a determination left in the the past to the Federal Trade Commission (FTC) and the courts. The rules are now whatever the regulators say they are, as MHProNews understands.

Gramm says, Most criticism of Dodd-Frank focuses on its massive regulatory burden, but its most costly and dangerous effects are the uncertainty and arbitrary power it has created by the destruction of the rule of law. This shackles economic growth but more important, it imperils our freedom.

For the relevance of former Sen. Gramm’s words to manufactured housing, please click here.##

(Image credit:bloombergbusinessweek)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Housing Recovery? Not so Fast…

November 13th, 2013 Comments off

The recovery of the housing market is still a long ways off, according to CNBC.com, noting people who rushed to buy this summer will realize they have made a “grave mistake.” Existing home sales were down 1.9 percent in Sept., and revised figures for August, which is often the last good sales month of the season, show sales were flat. Another measure of the market, pending home sales, dropped 5.6 percent in Sept., the fourth month in a row it has declined, and it is down 1.2 percent year-over-year. The average home price in America is $180,000, as MHProNews knows. Using this number as a base, the Federal Reserve’s quantitative easing program has purchased the equivalent of 8.1 million homes, roughly 6.2 percent of the housing stock. When the Fed’s program begins tapering off, home prices will begin to fall.

(Image credit: CNNMoney)

Federal Reserve may Taper Stimulus Program this Year

June 14th, 2013 Comments off

With concerns growing over when the Federal Reserve Bank will slow its quantitative easing and the subsequent effect on the economy, of 39 economists and investment advisors surveyed, nearly two-thirds do not think it will begin before Dec. 2013, and some not till 2014. As MHProNews has learned from CNNMoney, while the intent of the Fed’s policy has been to keep interest rates low in order to allow businesses and consumers to borrow money, it has also provided meager returns on savings. Federal Reserve Chief Ben Bernanke is scheduled to speak at a press conference Wed. afternoon and may give hints as to the Fed’s plans. “The markets don’t like uncertainty,” said Allen Sinai, chief global economist for Decision Economics. “The Federal Reserve should clarify the uncertainty as soon as possible –which would be Wednesday.” In the past the Fed has suggested it intends to keep rates low until the unemployment rate reaches 6.5 percent.

(Image credit: Wikipedia)

Zell says the Stock Market will Tumble

May 17th, 2013 Comments off

Sam Zell, Chairman of Equity LifeStyle Properties, Inc. (ELS) tells Fortune magazine the stock market is riding high but the underlying fundamentals are weak and the market will fall. “The current euphoria in the stock market will be adjusted, and I hope that’s all that happens,” he says. Noting that large investors are buying houses in quantities, which is pushing up prices, he says they may end up losing money because managing a house is much different than managing apartments.  He says the stock market is like the housing bubble right before it popped, and criticizes the Federal Reserve for its Quantitative Easing, which will eventually lead to inflation. “We’re seeing a tsunami of liquidity. But I don’t know that necessarily means things are better,” he adds. As MHProNews knows, ELS is the largest owner of manufactured housing and recreational vehicle communities in North America with 380 properties and over 140,000 homesites.

(Photo credit: The Wall Street Journal)

Federal Reserve’s Bond-Buying May End by Next Year

May 2nd, 2013 Comments off

According to nationalmortgagenews, a survey of economists by Bloomberg reports Federal Reserve Chairman Ben Bernanke is expected to reduce the quantitative easing that has been used to bolster the economy from $85 billion monthly to $50 billion by year’s end. That would be followed by a second cut to $30 billion next year and then an end to bond buying altogether, providing interest rates do not suddenly shoot up. Former Fed economist Joseph LaVorgna, noting the accommodation withdrawal is unprecedented territory, says, “You want to see how the market is going to digest a cut in purchases so you want to do it in a way that minimizes the disruption.” The Fed started purchasing $40 billion a month of mortgage-backed securities is Sept., 2012 and then increased it by $45 billion in Dec. Sixty-one percent of the 47 economists in the survey say they expect the bond-buying to end in the first half of 2014. As MHProNews has learned after its last meeting March 20, the Fed pledged to keep buying securities until there is substantial improvement in the job market.

(Image credit: Fotosearch)

Stock Watcher Predicts Economic Growth

March 19th, 2013 Comments off

Mitch Zacks of zacksinvestmentmanagement says one of the major factors driving the stock market as it hits new highs is the strength of the job market, which has witnessed the strongest period of job increases in over five years, and a concurrent drop in unemployment claims to a five-year low. Zacks attributes the employment numbers to the Federal Reserve’s quantitative easing—essentially printing money, and predicts a Gross Domestic Product (GDP) growth of three percent this year, an upgrade from the 1.3 to 1.9 percent originally projected before the sequestration cuts. He says, “A fairly solid, full-steam ahead economy appears to be here.” MHProNews understands that jobs are a major factor in driving the overall housing economy. Zacks does caution that the Fed may ease the easing too soon, which could be harmful.

(Image credit: Fotosearch–Businessman with crystal ball)

Warren Buffett Opines

October 24th, 2012 Comments off

NASDAQ reports in a TV interview this morning, Oct. 24, on CNBC, Warren Buffett says the housing market has turned a corner and home construction is improving, and he expects Berkshire businesses tied to that industry to pick up. Despite the global economy slowdown, the Oracle of Omaha says the U.S. is doing better than either Europe or Asia, and has high praise for Fed Chairman Ben Bernanke, saying he “has done an absolutely superb job,” although he questions his policy of quantitative easing. Buffett says he expects Berkshire’s carpet business to double its profits this year, and Clayton Homes will see an increase of 15 percent in production. As a result he expects Berkshire to add 8,000 employees to the roughly 270,000 employed at the beginning of the year, MHProNews has learned.

(Photo credit: businessinsider)