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“The Federal Reserve Act of December 23, 1913, was part and parcel of the wave of Progressive legislation on local, state, and federal levels of government that began about 1900. Progressivism was a bipartisan movement that, in the course of the first two decades of the 20th century, transformed the American economy and society from one of roughly laissez-faire to one of centralized statism.”
Murray Rothbart

Commentary & Analysis
Charts of the Day: More QE3…please?

I read in a Bloomberg story today that Bill Gross was expecting QE3 in some form or fashion thanks to the US economy entering what he referred to as “stall speed.”

“There’s a potential for a QE3,” said Gross, who oversees $1.28 trillion as Pimco’s co-chief investment officer. “I suggest, however, that that takes the form really of language, of extended period language, and maybe some type of cap on five- or even 10-year Treasury securities.”

Now, we all know just how successful the last two rounds of QE have been—NOT! What evidence could there be the central bank will try again? I throw the following chart onto the QE court [QE periods #1 & #2 in the yellow boxes]:

It sure isn’t going out on a limb to expect QE3 in some form given the Fed has morphed from a really bad institution to a horrible one that now sees risk asset bubble blowing as a viable substitute for policy–it’s called asset-pump-cum-wealth-effect theory. You see it in all the latest journals despite proof it doesn’t work. But let’s not let the real world ever get in the way of the dismal science.
It is no wonder everyone is buying gold…

The real money crash in the stock market continues no matter how much credit Ben & Friends take for keeping their buddies’ stock portfolios afloat….

Dow Jones Industrial Average versus DJIA/Gold: Can you say “real value crash in stocks?”

What a mess they’ve got us into!