July 12, 2013
Surprised?....I'm not. This will be happening much more in the days and weeks to come. ~BK
Elizabeth A. Duke, a Federal Reserve governor who has helped to overhaul the Fed’s approach to financial regulation, said on Thursday that she would step down at the end of August.
Ms. Duke, just the seventh woman to serve on the Fed’s board, has also been a quiet but consistent supporter of Ben S. Bernanke, the Fed chairman, and of the central bank’s economic stimulus campaign.
In a letter of resignation submitted to President Obama, Ms. Duke, 60, said that she was “proud to have contributed” to those efforts.
“I am especially gratified to have brought my own practical banking experience and community banking perspective to the massive overhaul of financial system regulations,” Ms. Duke wrote.
She did not offer a reason for leaving, nor did she describe her plans. Her term ended last January, but governors can remain in office until a replacement is nominated, and the Obama administration had not sought her departure.
More here: http://www.nytimes.com/2013/07/12/business/economy/fed-governor-to-resign.html?_r=0&adxnnl=1&adxnnlx=1373642090-qI4QexHaBUYfrLOMURaj/w
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This Week's Fed Governor Resignation May Be A Much Bigger Deal Than You Think
Earlier this week, we got the minutes from the June Federal Open Market Committee (FOMC) meeting. Also, Fed Chairman Ben Bernanke spoke about and answered questions about monetary policy at an NBER conference in Massachusetts.
For the most part, the markets appeared to interpret the tone as dovish. In other words, they were convinced that it might be less likely that the Fed would taper, or gradually reduce, its quantitative easing program.
In what appeared to be unrelated news, Fed Governor Elizabeth Duke submitted her resignation to President Obama.
Not much was made of the resignation.
But Wall Street veteran Art Cashin thinks that there may be more to it.
From this morning's Cashin's Comments (emphasis added):
Some Weekend "Taper" Ponders – I encourage everyone to reread the FOMC Minutes. I think there was a clear tone to taper or wind down QE by yearend (or maybe sooner). At the same time, the FOMC seemed to see the recovery as struggling and almost fragile.
Now, add in the surprise resignation of Elizabeth Duke as a Fed Governor and voting FOMC member. "Betsey" as Mr. Bernanke refers to her, was said to be the key broker in setting up the current QE.
Put your Lt. Columbo hat on and ponder this: Could the FOMC have found some negative consequence caused by QE? Might that have prompted discussion and an interest to wind down or exit despite a still non-robust economy? The tone of the Minutes and the new resignation may hold interesting clues.
For now, the economy appears to be weak enough and inflation seems to be low enough that the monetary system would be able to tolerate more QE.
Hi Brian,
ReplyDeleteHope all is well with you and your family...
Thought you may be interested in this ....
A Progress Report by Chris Thomas ... July 2013
"The revelations that are coming to light through to the middle of 2013 are astonishing – but they are set to get worse.
As we strip our way down to the truth of the conspiracy, more and more horrors will come to light."
It's a very lengthy report, so I will just copy the link....
http://thespiritguides.co.uk/Article_A_Progress_Report_by_Chris_Thomas_-_July_2013_11952.aspx
New here to this site... Interesting article I ran across it on a friends Facebook Post.
ReplyDeleteThought I would like to pass on to you and other readers:
Many People, Myself included have been baffled about the "Inside Trader" style and the complete exceptance of everything regarding the recent Spike in Interest Rates via the Wall Street Bankers in the Mortgage Market.
Since you mentioned the "Tapering Off" idea the Fed is passing around, which Bernacke has since also mentioned the Fed don't have a plan to "Taper Off" the current rate of Bond Buying and can't see it happening anytime soon... (Those Bonds have been to build a HUGE source of Cash the Banks can use for stimulating the Housing Market)
In the last about 30 days the Mortgage Rates have suddenly increased from @ 3% to 4.5% on his mere suggestion of a FUTURE tapering. These Banks, well known for there huge CEO's/Bonus give aways, from Bernacke's idle chat are now openly sucking up another huge windfall. I've heard they continue to raise their rates, pure added profits without expense at all... Gratus!!! Gee Thanks from all of us paying for that...
This comes at a time when the FEW home owners abile to now Market their homes are getting hammered by the FEWER buyers who, for every 1% increase will have to buy a 13% lower priced home. (By Payments, a 1.5% increase adds nearly a whooping 20%) While homes over the whole year have gained @ 12% Nationally.
We bailed their A$$ES out, they handed us Foreclosures, Lowered our Values Record Amounts, Increased their Loan Requirements and now at the first sign of a open hole way, way down the tunnel... Without a moments notice they are gouging and pulling the rug out from under the recovery as if nothing happened!!!
Wasn't it the BANKS that caused this Great Recession? Wasn't it because of the Banks falsely increasing their Profits from their packaging of HOMES? Here we go again and this is probably why this Governor Left, because Bernacke gives them the "High Sign" and she know he's not that stupid... This stinks!!! What is enough for these Greedy Exploiters of Humanity?
Nothing is Enough...