By Doug Noland
At least so far, markets seem fine with a pathetically dysfunctional Washington. The question arrived via Prudentbear.com and appeared simple enough: “Can you explain how QE funds are inflating the asset markets if these monies are being parked back with the Fed, collecting interest? Can they be in two places at the same time?”
By Doug Noland
With taper worries out of the way for now, the markets will watch to see if Washington can avoid a government shutdown.
From the Federal Reserve’s Q2 2013 Z.1 “flow of funds” report, Total (non-financial and financial sector) System Credit increased $176bn during the quarter to a record $57.563 TN. Total Credit jumped $1.971 TN over the past year.
‘Wrap Up’ Snippet: “The bottom line is that what we have learned over the last year or so is that every assumption must be measured against the question of what happens when there is nowhere left to hide?
Policy makers’ have pretended to be astute and great economic thinkers with astute and great economists at their side helping them make astute and great decisions. Unfortunately, reality paints them more like meddlesome, egotistical and myopic buffoons hell bent on bubble blowing.”
You may have noticed that the ‘Guest Commentary’ link has been removed from the header above. That is because with dynamic markets revving up for coming changes, it has become difficult to consistently put the time in to publish other people’s work. So going forward we’ll just pin guest commentary to the front page as time allows, like this morning for example.
Latent Market Bubble Risks Doug Noland 6.22.13
Paranoid? Or Justifiably Worried? Bill Bonner 6.22.13
SP500 Following in 1998′s Footsteps Tom McClellan 6.22.13
Gold & Silver: A Great Day to Be a Bear EWI 6.22.13
Pivotal Events Bob Hoye 6.22.13 (pdf)
We’re About to See What Happens When the Music Stops Martin Hutchinson 6.22.13
Quick Notes on the Week Michael Ashton 6.22.13