QE4 by a different name?

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The Federal Reserve cleverly announced QE4 (the fourth round of quantitative easing) yesterday without actually calling it that. Over a year ago, the Fed embarked on “Operation Twist,” in which it purchases $45 billion per month in long-term Treasury securities and simultaneously sells $45 billion in short-term securities. By buying long-term bonds, the Fed puts […]

The Post-Election Correction

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On November 6, President Obama was re-elected for 4 more years. On November 7, the S&P 500 fell -2.3% and has continued to fall since; it is now down -4.6% since Election Day. Overseas markets have fared somewhat better, as the MSCI All-Country World ex-US index is down only -3.3% over the same period. What […]

QE3: The ship has sailed

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Yesterday, the US Federal Reserve announced what is commonly called “QE3,” which stands for “quantitative easing, round 3.” This is an unconventional form of monetary easing in which the Fed buys longer-term bonds on the open market, either Treasuries or US Agency securities. For this particular round, the Fed says that they will buy $40 […]

Debt and Taxes, Part 1

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Greece is again in the news, finally passing reforms that will probably enable them to receive the second round of bailout funds. Although they gave in to most of the IMF’s and the Eurozone’s (i.e., Germany’s) demands, even after this round of funding, it won’t be the end of the crisis for Greece or the […]