Showing posts with label ben bernanke. Show all posts
Showing posts with label ben bernanke. Show all posts
Monday, March 16, 2009
Video: Ben Bernanke's Interview on CBS
This is the controversial video that Wall Street participants are discussing about. Be reminded, this is the first time a Fed Chairman accepts a personal TV interview while in office. Enjoy..
Wednesday, March 4, 2009
Video Link & Summary of Fed Chairman's Testimony
Took some time to watch the testimony earlier. It started with some intensity and it ended with a softer and more understanding note towards the end of the testimony. I wouldn't want to be on Bernanke's hot seat if given a chance.
Chairman Bernanke expressed his anger towards AIG, and explained that AIG's investment operations were operating like a hedge fund, and because of such unmanaged risk that were taken by them, where it also went through the regulatory loopholes, thus causing the worries. If AIG is to fail now, the effect may be catastrophic and detrimental to the current financial woes of the economy. The Fed did really think and consider about the consumers of such insurance products who had given premiums to the insurer, and the possible effect if AIG is to fail, there will be another vacuum that could cost adverse effects in the health care system as well.
One of the Senator did bring up to Bernanke's attention to ask if AIG was labeled as a 'zombie institution'. I thought that was a pretty interesting one, but Bernanke replied neutrally to the question, which panned out to be a 'no'.
As for future plans to AIG, they hope to be able to break up the company, and subsequently sell the company at a later stage.
After the testimony today, where I will express in my personal opinion, I feel that the U.S economy is currently going through a very rough patch. The existing problem on hand is indeed extremely challenging for the Obama Administration and Ben Bernanke:
1) They have a huge deficit that may take 2 generations to clear.
2) They have to find ways to acquire national income and maintain a healthy Debt to GDP ratio for the country. In my opinion, now, not only the big financial institutions are technically insolvent, I think the U.S economy is technically in it as well.
3) They have to work hard to maintain the credibility of the U.S government securities.
4) They are still currently using good money (TARP, Stimulus Package, TALF and more to come) to chase after bad money (Citibank, AIG, GM and etc), after 8 months of rescue to the economy.
Simply, such problems could not be resolved over the next 2 years. It will take a longer than expected time to recover from this impact. If you had followed closely, Dow at 7,100 was the 50% mark between the high in Oct 2007 to the low in 1932. Thus by taking less than 2 years, all these gains were simply wiped out.
Continue to look into the stock market for clues for the recovery, as this is where most sovereign wealth funds, governments, great investors and gurus' monies are in now. If you have time to watch a 6 part (10-min) clip, I urge you to watch this interesting video documentary on the Great Depression of 1929.
Here is the video link to the testimony
Chairman Bernanke expressed his anger towards AIG, and explained that AIG's investment operations were operating like a hedge fund, and because of such unmanaged risk that were taken by them, where it also went through the regulatory loopholes, thus causing the worries. If AIG is to fail now, the effect may be catastrophic and detrimental to the current financial woes of the economy. The Fed did really think and consider about the consumers of such insurance products who had given premiums to the insurer, and the possible effect if AIG is to fail, there will be another vacuum that could cost adverse effects in the health care system as well.
One of the Senator did bring up to Bernanke's attention to ask if AIG was labeled as a 'zombie institution'. I thought that was a pretty interesting one, but Bernanke replied neutrally to the question, which panned out to be a 'no'.
As for future plans to AIG, they hope to be able to break up the company, and subsequently sell the company at a later stage.
After the testimony today, where I will express in my personal opinion, I feel that the U.S economy is currently going through a very rough patch. The existing problem on hand is indeed extremely challenging for the Obama Administration and Ben Bernanke:
1) They have a huge deficit that may take 2 generations to clear.
2) They have to find ways to acquire national income and maintain a healthy Debt to GDP ratio for the country. In my opinion, now, not only the big financial institutions are technically insolvent, I think the U.S economy is technically in it as well.
3) They have to work hard to maintain the credibility of the U.S government securities.
4) They are still currently using good money (TARP, Stimulus Package, TALF and more to come) to chase after bad money (Citibank, AIG, GM and etc), after 8 months of rescue to the economy.
Simply, such problems could not be resolved over the next 2 years. It will take a longer than expected time to recover from this impact. If you had followed closely, Dow at 7,100 was the 50% mark between the high in Oct 2007 to the low in 1932. Thus by taking less than 2 years, all these gains were simply wiped out.
Continue to look into the stock market for clues for the recovery, as this is where most sovereign wealth funds, governments, great investors and gurus' monies are in now. If you have time to watch a 6 part (10-min) clip, I urge you to watch this interesting video documentary on the Great Depression of 1929.
Here is the video link to the testimony
Wednesday, February 25, 2009
Video and Transcript of Semi Annual Monetary Policy Report
Hi all,
After watching the full meeting yesterday, here is my short conclusion:
Economy
Necessary counter-cyclical monetary policies has already been used to stabilize the US economy, and with the recent corrections in property prices, goods and services, most products in general, has already been adjusted to norm, where it is more affordable to common citizens in the US. Banks are also given credits for every good loans made to any credible borrower.
Seems like measures of increasing additional money supply to the economy, and measures to prime the banks to lend has taken place. But what may seem worrying for the moment, is only if other countries may not find the returns on treasuries and the USD is no longer attractive.
Future
With a little more to be done still, that means after 2 Trillion USD, the FED will allow market forces to adjust itself to these new changes, and hope that consumer's confidence could be restored over the next few months. FED will continue to monitor the progress of their capital injections, and will be looking at withdrawing out their investments in banks gradually.
I believe the twin deficits should soon be an important topic for next year, as the US government may have to deal with enhancing their credibility, and repayment of debts. At this moment, the smoke may seem to have cleared a little for the 'real' US economy, and many steps that has to be taken to revive the economy is already better defined. I begin to see some light from this financial turmoil.
Additional Notes
If you are a technical trader, 7,100 of DJIA will be a tough psychological level to break, as it is the 50% mark of the index. DJIA's closing low on 27 June 1932, was 42.93... and it's high on 9 Oct 2007 was at 14,164.53.. We have thus effectively retraced 50% within 1.1/2 years, from the entire 75 year move. Interesting isn't it?
If you have missed yesterday's semi annual monetary policy report by Fed Chairman Ben Bernanke, here are some links for you to watch the full video, and the report's transcript.
If you have views and comments that you would like to share, drop me a comment, or post in my forum
Cheers..
After watching the full meeting yesterday, here is my short conclusion:
Economy
Necessary counter-cyclical monetary policies has already been used to stabilize the US economy, and with the recent corrections in property prices, goods and services, most products in general, has already been adjusted to norm, where it is more affordable to common citizens in the US. Banks are also given credits for every good loans made to any credible borrower.
Seems like measures of increasing additional money supply to the economy, and measures to prime the banks to lend has taken place. But what may seem worrying for the moment, is only if other countries may not find the returns on treasuries and the USD is no longer attractive.
Future
With a little more to be done still, that means after 2 Trillion USD, the FED will allow market forces to adjust itself to these new changes, and hope that consumer's confidence could be restored over the next few months. FED will continue to monitor the progress of their capital injections, and will be looking at withdrawing out their investments in banks gradually.
I believe the twin deficits should soon be an important topic for next year, as the US government may have to deal with enhancing their credibility, and repayment of debts. At this moment, the smoke may seem to have cleared a little for the 'real' US economy, and many steps that has to be taken to revive the economy is already better defined. I begin to see some light from this financial turmoil.
Additional Notes
If you are a technical trader, 7,100 of DJIA will be a tough psychological level to break, as it is the 50% mark of the index. DJIA's closing low on 27 June 1932, was 42.93... and it's high on 9 Oct 2007 was at 14,164.53.. We have thus effectively retraced 50% within 1.1/2 years, from the entire 75 year move. Interesting isn't it?
If you have missed yesterday's semi annual monetary policy report by Fed Chairman Ben Bernanke, here are some links for you to watch the full video, and the report's transcript.
If you have views and comments that you would like to share, drop me a comment, or post in my forum
Cheers..
Thursday, October 16, 2008
Video: Ben Bernanke's Speech
Seems like the US stock markets do not really like Fed Chairman, Ben Bernanke appearances most of the time.
If you missed yesterday night's speech, here you go:
Part 1
Part 2
For a script on the speech, you can also access it from here.
Good trades.
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