Trial By Fire: A Brief History Of Fed Heads
It seems that, since the Fed became more active in the markets over the years, not only have bigger bubbles and busts occurred, but each subsequent cycle required an even larger bubble to try to ameliorate some of the effects of the previous bursting. It is rather easy to understand why many blamed Alan Greenspan for the crash of 1987. After all, the market had been cruising along, making regular new highs year after year, finally peaking during the period in August 1987. Then, in early September the Fed elected to raise the Discount Rate and increase the Federal Funds target rate. Less than two months later, the market experienced the largest one-day crash ever. ... more
If The Facts Bother You, Just Ignore Them!
According to the Bureau of Labor Statistics (BLS), the number of unemployed persons declined by 490,000 in the month of December, 2013. Does that mean, as some would interpret this data, that the reason for this decline was due to massive job growth? Unfortunately not. The reality is that, once again, the labor force participation rate declined further, moving to a fresh 36 year low.... more
This 'Gift' Is More Like A Trojan Horse
The only reason the unemployment rate has dropped so precipitously (notwithstanding the shenanigans alleged to have taken place in the Census Bureau regarding its counting procedures around election time) is because the labor participation rate has recently fallen to a 35 year low! The real rate of unemployment is almost double the headline rate and the headline rate itself is at its level chiefly because so many have stopped looking for work
that they have dropped off the unemployment rolls and are no longer counted as unemployed.... more