Thursday, August 12, 2010

Fed can't fix economy

The Federal Reserve has admitted the US recovery has slowed. Gregory White from Business Insider explains this sudden turn in the Fed's outlook and says the real concern right now is deflation, but the Fed's aren't going to come out publically saying that they're worried about this until they have a new QE package ready - and that probably won't happen until November (after the election cycle). White says the US Economy will likely be completely stalled in the mean-time (a terrible predicament where we can't even deal with the unemployment crisis).

1 comment:

jerry, of eye on washington said...

The Fed is just now worried about deflation? HUH? We have been in an asset deflationary period for two years. We have been seeing pricing inflation when buying groceries and other things, as well. Japan here we come!

QE2 is a joke. Bada Bing Bernanke is going to buy up toxic mortgage backed securities so he can further add more liquidity to the bankstas who have been saturated with FED liquidity amounting into the trillions of dollars already. So where is the real economy support BBB? Nowhere to be seen.

Stuff the bankstas with more cash, yet with no consideration to lend once placed upon their balance sheets; they get fatter.