Fresh on the heels of my 3:38 AM post Charting Errors in BLS Participation Rate Projections came an interesting speech by William Dudley, president of the Federal Reserve Bank of New York.

Please consider these snips from Dudley's speech today The Recovery and Monetary Policy.

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Mike Shedlock

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.

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6 Comments So Far
M1946W Wrote: Oct 16, 2012 11:43 AM
In summation, government meddling caused it and not only is more government meddling not going to fix it it'll only make it ten times worse.
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Blair31 Wrote: Oct 16, 2012 10:05 AM
The reason we're $16 trillion dollars in debt is because of three things: Social Security, Medicare, and
Medicaid. If we adopted the Chilean Model, we could turn Social Security over to private pension managers, and turn Medicare and Medicaid, over to the insurance companies. That would tick off Bernie Sanders, Vermont's Socialist U.S. Senator, who doesn't want to privatize Social Security. What's HIS solution? He doesn't have one.
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Chris from Kalifornia Wrote: Oct 16, 2012 12:32 PM
That is not "the reason". It is part of the reason. The rest is all the other unconstitutional spending programs like HUD, Departments of education, energy and many others. Social Security, medicare and medicaid along with all the federal welfare programs are unconstitutional. They should be abolished. But since so many people are stuck relying on them now because they've been in place so long, they need to be abolished slowly, by not putting anyone else into them. Let people take care of themselves and their families. Stop the federal subsidies that break up the family units and stop paying people to have babies. Let charities return to the time honored method of taking care of the indigent. Stop all the government policies that
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Chris from Kalifornia Wrote: Oct 16, 2012 12:33 PM
denigrate the values this country was born under. We are a Christian nation and the country was founded on Christian principles. Go back to those and the nation will heal itself.
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geotay Wrote: Oct 16, 2012 2:34 PM
Blair31-
The 'debt' we can see. What's even more serious is the obligations down the road that no one even talks about - they're over 70 TRILLION.
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MoreFreedom Wrote: Oct 16, 2012 8:41 AM
Perhaps the reason stocks are retaining their value in spite of the economy, is three fold. One, many companies have a lot of assets which puts a floor on their price. Second, companies that competitively produce goods and services will still have some demand (we all consume food, clothing, electricity, etc.) that needs to be filled. Stock ownership also provides a hedge against inflation, as it's better to own productive assets than fiat paper.

Of course this doesn't apply so well to banks and other financial institutions, that make their money on the difference between interest rates offered to savers vs. to borrowers, often with long term loans and short term borrowing.
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