Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rates?

[Slimprofits]

Is this just a coincidence or something else?

http://www.marketwatch.com/story/fed...ays-2009-09-30

Sept. 30, 2009, 11:08 a.m. EDT

By Greg Robb, MarketWatch

There is no rush for the Federal Reserve to begin to tighten monetary policy, said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, on Wednesday.

"I think it may well be some time before a comprehensive exit need be under way," Lockhart said in a speech in Mobile, Ala.

There has been much speculation in financial markets and economic circles about the U.S. central bank's so-called "exit strategy" -- when and how it will start winding down the stimulus and liquidity measures implemented to battle the financial crisis that took hold a year ago.

Worries that the Fed's credit-easing policy, which has expanded bank reserves, will fuel inflation are exaggerated, Lockhart said.

http://online.wsj.com/article/BT-CO-...06-706884.html

OCTOBER 6, 2009, 9:14 A.M. ET

By Bradley Davis
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)-- The dollar dropped overnight Tuesday as the Reserve Bank of Australia hiked interest rates, the first G20 country to do so, putting added pressure on the low-yielding greenback.

[..]

Also hurting the dollar in overnight trading was a report in the U.K. newspaper The Independent suggesting that Gulf States were going to switch to a basket of currencies from the dollar for the oil trade.

[..]

U.S. interest rates are likely to remain low for some time - putting pressure on the dollar - amid weak inflation and a modest economic rebound, a top Federal Reserve official said Monday.

"The federal funds rate target is likely to remain exceptionally low for an extended period," Federal Reserve Bank of New York President William Dudley said Monday.

[GRG55]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

Is this just a coincidence or something else?

http://www.marketwatch.com/story/fed...ays-2009-09-30

...There is no rush for the Federal Reserve to begin to tighten monetary policy, said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, on Wednesday.

"I think it may well be some time before a comprehensive exit need be under way," Lockhart said in a speech in Mobile, Ala...

It's becoming clear that this Administration, the Treasury and the Fed are truly spooked by the rapidly rising unemployment rate, and the absence of a private sector consumption-driven self-sustaining recovery.

From the Fed minutes promising free money forever, to Geithner's comments at the G20 this past weekend, to the dragging out of retirement former Fed Governor Mishkin, they are pulling out all the stops in support of current monetary and fiscal policy...and trying to prop up that ever elusive "confidence".

The Dollar is just another victim, along with savers, pensioners and a host of others.

[sunskyfan]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

Didn't there use to be a cultural ethic that we protect people of save because they usually are grandmas and grandpas trying to get by?

Isn't the measure of panic the willingness to part with first principles to save one's self?

[vinoveri]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

Didn't there use to be a cultural ethic that we protect people of save because they usually are grandmas and grandpas trying to get by?

Isn't the measure of panic the willingness to part with first principles to save one's self?

yes, but I wonder what % of grandmas and grandpa now live off of fixed-income government checks vs savings, and I bet it's alot; by breeding a culture of dependence, the gov sets itself up to be perceived as benevolent and caring whereas the truth as we know is exactly the opposite.

parting with first principles to save oneself is cowardice, but it just may be that these folks aren't cowards b/c their first principles don't coincide with yours (and mine by the way if we're talking about the inherent injust theft of debasing someones life savings).

[sunskyfan]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

First principles. Good point. When I look around I wonder what I have in common with a lot of the people around me. I am not a left-wing nutcase nor am I a pill-box pouring whack-job. I am just wondering when did we transform from people wanting a better life and do cool things to people wanting it all no matter the cost or hit to integrity. When did we let ambition addicts define success and mooches define failure? When did the Financial system become the point of life instead of a tool to to enable life? If you think I am over-dramatic it seems to me the decisions were are making have made the previous sentence policy.

[wayiwalk]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

First principles. Good point. When I look around I wonder what I have in common with a lot of the people around me. I am not a left-wing nutcase nor am I a pill-box pouring whack-job. I am just wondering when did we transform from people wanting a better life and do cool things to people wanting it all no matter the cost or hit to integrity. When did we let ambition addicts define success and mooches define failure? When did the Financial system become the point of life instead of a tool to to enable life? If you think I am over-dramatic it seems to me the decisions were are making have made the previous sentence policy.

When?

Sometime after the mass production of the COLOR TV, I believe...

:cool:

[cjppjc]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

First principles. Good point. When I look around I wonder what I have in common with a lot of the people around me. I am not a left-wing nutcase nor am I a pill-box pouring whack-job. I am just wondering when did we transform from people wanting a better life and do cool things to people wanting it all no matter the cost or hit to integrity. When did we let ambition addicts define success and mooches define failure? When did the Financial system become the point of life instead of a tool to to enable life? If you think I am over-dramatic it seems to me the decisions were are making have made the previous sentence policy.

Someone once said "Greed in inevitable in the absence of an inner aim."

[GRG55]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

It's becoming clear that this Administration, the Treasury and the Fed are truly spooked by the rapidly rising unemployment rate, and the absence of a private sector consumption-driven self-sustaining recovery...

Okay, so a "Jobs Summit" was both predictable and unoriginal...but since we can be reasonably sure they aren't going to talk about techniques for Americans to burnish their résumés, I wonder what new stimulus spending policy will come in the wake of it...

Obama Announces December 'Forum' on Finding Jobs


President Barack Obama announced Friday that he'll host a White House summit next month on combating the chronic joblessness that continues to be a drag on a struggling economy.

"We are open to any demonstrably good idea to supplement the steps we've already taken to put America back to work," Obama said before taking off for a trip to Asia, where U.S. and global business prospects will be among the key issues under discussion...

...The December jobs "forum" will bring in public and private sector experts to talk about how to get the job-creation engine running again, Obama said. Because economic prosperity at home is tied to economies around the world, the president said he also plans to talk about a strategy for growth with leaders in Asia...

[jk]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

Okay, so a "Jobs Summit" was both predictable and unoriginal...but since we can be reasonably sure they aren't going to talk about techniques for Americans to burnish their résumés, I wonder what new stimulus spending policy will come in the wake of it...

Obama Announces December 'Forum' on Finding Jobs


President Barack Obama announced Friday that he'll host a White House summit next month on combating the chronic joblessness that continues to be a drag on a struggling economy.

"We are open to any demonstrably good idea to supplement the steps we've already taken to put America back to work," Obama said before taking off for a trip to Asia, where U.S. and global business prospects will be among the key issues under discussion...

...The December jobs "forum" will bring in public and private sector experts to talk about how to get the job-creation engine running again, Obama said. Because economic prosperity at home is tied to economies around the world, the president said he also plans to talk about a strategy for growth with leaders in Asia...

maybe stimulus ii will be the infrastructure and alt energy stuff we expected in stimulus i.

[GRG55]

Re: Correlation between 10 and 30 year yields / Lockhart speech, Dudley speech & Aussies raising rat

maybe stimulus ii will be the infrastructure and alt energy stuff we expected in stimulus i.

Krugman's current thoughts on this...

It’s the stupidity economy

...That’s why, at this point, I’m turning to what I understand perfectly well to be a third-best solution: subsidizing jobs and promoting work-sharing...