Daily Reading on the Financial Markets: 6/7/12
I recently stumbled across an ad offering me the chance to see if I qualify for a government grant to return to college. Wait, wasn’t it like pulling teeth when I attended college, 20 years ago? Does this remind anyone else of the wonderful financing opportunities available to anyone at all in about 2007? Yeah… this student loan business is going to get ugly, for sure. From Forbes.
From Bloomberg, Dick Fisher – one of the few Hawks left on the Fed Board – fears that QE3 would make the Fed complicit by monetizing Congress’s wayward spending.
From PragCap a collection of pummeled index charts… including the CRB Commodity Index. It is up just 35% in the last 10 years. For all the talk and fear of inflation… it certainly isn’t showing up in the CRB Index right now.
I don’t anyone’s confused about why the markets rallied Wednesday. With the Fed readying to speak on Thursday, and with rumors of QE3 swirling, “racers take your marks…” Do you think QE could possibly have unintended future consequences? Naaaahhhh…
From Krugman-in-Wonderland, a great 1930’s pro-inflation propaganda film. Two key selling points to notice: 1) they envision the dollar value holding steady into the indefinite future after a short period of the debasement, and 2) the primary selling point is that inflation would help pull pay levels back into line with the cost of living. Both have failed to play out over the long term as hoped.