US economy: Ben Bernanke to give high profile speech

Gerald · 08-26-11, 11:07 PM

The head of the US central bank, Ben Bernanke, is preparing to give a key speech that will be closely watched by markets for any hint of new stimulus.

He will speak at a meeting of central bankers in Jackson Hole, Wyoming.

Last year, his speech paved the way for $600bn (£368bn) of quantitative easing - injecting cash into the financial system to try to boost the economy.

This year, with the US again slowing sharply, markets are speculating that further QE may be round the corner.

Market anticipation:

Shares have rallied all week in anticipation that the Federal Reserve will act to reinvigorate the US recovery.

Earlier this month, stock markets plummeted as economic data pointed to sluggish or virtually non-existent growth in the US and Europe.

"Recent events have made it blatantly clear that the economy is in a funk," says Paul Dales, senior US economist at Capital Economics.

"The housing market remains at rock bottom and even the manufacturing sector, which had been the shining light of this recovery, has come off the boil."

Gold also hit a new record high on Tuesday, before falling back as stocks rallied.

Investors see gold as a haven in times of economic uncertainty, and QE is expected to depress the value of the dollar versus gold, which also makes the precious metal more attractive.

http://www.bbc.co.uk/news/business-14644827

Note: 26 August 2011 Last updated at 12:48 GMT

CaptainHaplo · 08-26-11, 11:21 PM

Thankfully, no action will be taken. Weakening the dollar further (via quantitative easing) will not help the economy. Its incredibly short sighted while doing little to nothing in real terms to promote growth, yet sells long term future prosperity.

Because the Fed has not acted (a wise decision), expect the "policy" speech by the president to be significant in its calls for bigger government, specifically in regards to government getting even further into the housing business.

STEED · 08-27-11, 07:04 AM

Quote:

Originally Posted by CaptainHaplo

Thankfully, no action will be taken. Weakening the dollar further (via quantitative easing) will not help the economy. Its incredibly short sighted while doing little to nothing in real terms to promote growth, yet sells long term future prosperity.

Because the Fed has not acted (a wise decision), expect the "policy" speech by the president to be significant in its calls for bigger government, specifically in regards to government getting even further into the housing business.

Dose this mean a couple of days of big up's on the DOW before they cream it off with big falls next week?

That is just what happens here on the FTSE 100.

AVGWarhawk · 08-27-11, 07:17 AM

Quote:

Dose this mean a couple of days of big up's on the DOW before they cream it off with big falls next week?

This means the printing machine for dollar bills will be working overtime.

Quote:

"Recent events have made it blatantly clear that the economy is in a funk," says Paul Dales, senior US economist at Capital Economics.

This guy has a profound grasp on the obvious.

Quote:

"The housing market remains at rock bottom and even the manufacturing sector, which had been the shining light of this recovery, has come off the boil."

Manufacturing sector? Does he mean China?

Quote:

Gold also hit a new record high on Tuesday, before falling back as stocks rallied.

Investors see gold as a haven in times of economic uncertainty, and QE is expected to depress the value of the dollar versus gold, which also makes the precious metal more attractive.

I see gold value dropping like a rock when we come out of this 'funk'. If we never come out of the 'funk' gold will be only worth what one is willing to pay.

STEED · 08-27-11, 07:19 AM

Quote:

Originally Posted by AVGWarhawk

This means the printing machine for dollar bills will be working overtime.

This guy has a profound grasp on the obvious.

When this happens as I said it's just a quick pound or buck in your case which means nothing as no one is able to do what must be done.

mako88sb · 08-27-11, 08:55 AM

There was a interview with the president & CEO of a company called Methanix , back in late July that has some good things to say about the state of the US economy. Here's the interview but skip ahead to about the 5:30 mark to hear his views on US growth.

http://www.bnn.ca/News/2011/07/28/Me...hanex-CEO.aspx

08-26-11, 11:07 PM	#1
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	US economy: Ben Bernanke to give high profile speech The head of the US central bank, Ben Bernanke, is preparing to give a key speech that will be closely watched by markets for any hint of new stimulus. He will speak at a meeting of central bankers in Jackson Hole, Wyoming. Last year, his speech paved the way for $600bn (£368bn) of quantitative easing - injecting cash into the financial system to try to boost the economy. This year, with the US again slowing sharply, markets are speculating that further QE may be round the corner. Market anticipation: Shares have rallied all week in anticipation that the Federal Reserve will act to reinvigorate the US recovery. Earlier this month, stock markets plummeted as economic data pointed to sluggish or virtually non-existent growth in the US and Europe. "Recent events have made it blatantly clear that the economy is in a funk," says Paul Dales, senior US economist at Capital Economics. "The housing market remains at rock bottom and even the manufacturing sector, which had been the shining light of this recovery, has come off the boil." Gold also hit a new record high on Tuesday, before falling back as stocks rallied. Investors see gold as a haven in times of economic uncertainty, and QE is expected to depress the value of the dollar versus gold, which also makes the precious metal more attractive. http://www.bbc.co.uk/news/business-14644827 Note: 26 August 2011 Last updated at 12:48 GMT __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie

08-26-11, 11:21 PM	#2
CaptainHaplo Silent Hunter Join Date: Apr 2007 Posts: 4,404 Downloads: 29 Uploads: 0	Thankfully, no action will be taken. Weakening the dollar further (via quantitative easing) will not help the economy. Its incredibly short sighted while doing little to nothing in real terms to promote growth, yet sells long term future prosperity. Because the Fed has not acted (a wise decision), expect the "policy" speech by the president to be significant in its calls for bigger government, specifically in regards to government getting even further into the housing business. __________________ Good Hunting! Captain Haplo

08-27-11, 08:55 AM	#6
mako88sb XO Join Date: Mar 2005 Location: Calgary, Canada Posts: 423 Downloads: 0 Uploads: 0	There was a interview with the president & CEO of a company called Methanix , back in late July that has some good things to say about the state of the US economy. Here's the interview but skip ahead to about the 5:30 mark to hear his views on US growth. http://www.bnn.ca/News/2011/07/28/Me...hanex-CEO.aspx