As part of the stress testing routine, each bank is supposed to do its own simulation of how it would respond to the scenarios specified by the Fed, using its own internal model. And—surprise, surprise!—the banks virtually uniformly predict that they will do better than the Fed.
Tag Archive for Federal Reserve
Money Morning
FOMC Meeting: Data-Dependent and Dovish
by Diane Alter • • 0 Comments
The end of today’s Federal Open Market Committee (FOMC) meeting included fresh dovish language in its policy statement – but the market-friendly attitude failed to excite investors who were hoping for more.
As widely expected, the U.S. Federal Reserve announced it will stay the course on its bond tapering. Anticipated – but not as expected – the policy statement shed some light on eventual interest rate hikes.
The post Today’s FOMC Meeting: Data-Dependent and Dovish appeared first on Money Morning – Only the News You Can Profit From.
Wolf Richter
What Caused The Glorious Jump In Household Wealth (In One Insanely Good Chart) And Who Will Blow It Up Again?
by Wolf Richter • • 0 Comments
The stock market has soared for five years, risks have ballooned, home prices have jumped. Gains built on the quicksand of endless liquidity and a lackluster economy. “Irrational exuberance” is back in the Fed’s vocabulary. As the Fed&rsquo…
Wolf Richter
California Housing Bubble: Now Even Teachers Can No Longer Afford To Buy A Home
by Wolf Richter • • 0 Comments
it wasn’t the middle class who live and work here who drove up prices, abetted by eager banks and mortgage brokers with their liar loans, but investors awash in nearly free money from the Fed
Contributors- Economic and Financial, Must Read, Wolf Richter
Housing Bubble II: What’s Ruining Home Sales? Not The Weather! Wolf Richter
by Wolf Richter • • 0 Comments
OK, I get it. Life-threatening cold temperatures, polar vortices, and snow mayhem can put a damper on home construction, mortgage applications, first-time buyers, and home-builder confidence. But they also plunged on the West Coast where the weath…
Contributors- Economic and Financial, Must Read, Wolf Richter
Fed Lying About QE, Media Not Paying Attention – Wolf Richter- Testosterone Pit
by Wolf Richter • • 0 Comments
Since the introduction of QE 3, honest-looking Fed chairman Bernanke told the Wall-Street media circus after each FOMC meeting that the money-printing binge in the coming month would expand the Fed’s balance sheet by $85 billion.
Money Morning, Must Read
Five Important Things Federal Reserve Chair Janet Yellen Said to Congress Today – Money Morning
by Garrett Baldwin • • 0 Comments
On Tuesday morning, Federal Reserve Chair Janet Yellen spoke before the House of Representatives in the semiannual Monetary Policy Report. These are her first public comments since assuming the role as head of the U.S. central bank from her predecessor Ben Bernanke on Feb. 3, 2014.
Contributors- Economic and Financial, Must Read, Wolf Richter
Stocks Plunge: ‘And This Too Shall Pass,’ Or Something – Wolf Richter- Testosterone Pit
by Wolf Richter • • 0 Comments
The last stock-market bears have gone into hibernation, browbeaten and humiliated and ridiculed by years of brilliant rallies. Clinging to their analyses and the now silly notion that stocks should trade based on economic realities, they lost clients a…
Contributors- Economic and Financial, Must Read, Wolf Richter
What To Expect From Fed Chair Yellen In One Cartoon- Wolf Richter- Testosterone Pit
by Wolf Richter • • 0 Comments
Monday is Janet Yellen’s first day on the job as Chair of the Federal Reserve, and so, all wishful thinking aside, it’s crucial that we obtain, one way or the other, a clear picture of what her glorious tenure will look like.
Contributors- Economic and Financial, Must Read, Wolf Richter
The Exquisitely Reengineered Frankenstein Housing Monster – Wolf Richter- Testosterone Pit
by Wolf Richter • • 0 Comments
It’s back, a new and improved contraption, a synthetic structured security that on its polished surface looks like that triple-A rated mortgage-backed toxic waste that helped blow up the banks and your 401(k) in 2008. But this time, it’s di…
