The Fed begins its long and gradual exit | Gavyn Davies – FT

Bull and bear in front of the Frankfurt Stock ...

Bull and bear in front of the Frankfurt Stock Exchange (Photo credit: Wikipedia)

This is an excellent article from Gavyn Davies, the respected macro-economist, writing in his FT blog. For me, this is probably the best article that I have seen on the Fed‘s policy change announced this week. It’s a STRONGLY RECOMMENDED READ, in my view. Check it out!

The Fed begins its long and gradual exit | Gavyn Davies.

Here is the FT’s bio profile on Gavyn Davies:

Gavyn Davies is a macroeconomist who is now chairman of Fulcrum Asset Management and co-founder of Prisma Capital Partners. He was the head of the global economics department at Goldman Sachs from 1987-2001, and was chairman of the BBC from 2001-2004.

He has also served as an economic policy adviser in No 10 Downing Street, an external adviser to the British Treasury, and as a visiting professor at the London School of Economics.

Reading this article, what came across very strongly was that the US labor market still has a long way to go to return to normality. The second most important point for me was that the bull market with its upward trend in prices was likely to continue.

Any thoughts?

 

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The Bernanke Put: Can the Markets and the Economy Live Without It? : John Cassidy – The New Yorker

Official portrait of Federal Reserve Chairman ...

Official portrait of Federal Reserve Chairman Ben Bernanke. (Photo credit: Wikipedia)

This is an excellent and STRONGLY RECOMMENDED read from John Cassidy, in the New Yorker. Check it out!

via The Bernanke Put: Can the Markets and the Economy Live Without It? : The New Yorker.

In my view, John Cassidy rights extremely well and has a knack of making making complex subjects easier to understand.

I tend to agree with John Cassidy that Bernanke, Chairman of the Fed has taken a bit of a risk. Whilst the US economy has rebounded from the crisis of 2008 and compares well to Europe, there are many storm clouds on the horizon. Europe remains in austerity deadlock because of Germany, where the legal system hold politicians in check. China is struggling on many fronts to reform and mature her economy, with many businesses struggling to find finance. In the Middle East, the situation in Syria could still escalate into wider regional warfare.

Any thoughts?

 

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