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anBernanke Sees Signs Economy is Improving and Fiscal Policy Risks

  • Large and increasing level of government debt runs risk of serious economic consequences
  • Long way before labor market can be said to be operating normally
  • Fed will continue to monitor situation in Europe closely, and take every available step to protect US financial system and economy
  • There are concerns that have been weighing on US business investment
  • Inflation has declined and Fed expects it to remain subdued
  • Signs economy has declined and Fed expects it to remain subdued

Fed Chairman Bernanke Speaks at Conference In Boston


  • Flexible inflation goal not enough to ensure stability
  • Fed is more transparent on outlook, policy
  • Crisis to have profound, lasting economic impact
  • Applying lessons of crisis to ‘take some time’
  • Does not discuss economic outlook
  • Fed to increasingly use communication ‘tools’
  • Fed seeks to increase clarity about policy goals

Bobbys Corner-Open Market-Sept.7.2011

Good Morning:

Swiss nationals welcomed the decision by the Swiss Nat’l Bank to halt the appreciation of the CHF.  The exporting sector has been reeling the past few weeks with the appreciation of the CHF-as the cost of chocolates,cheese, Swiss knifes, watches,  and all other exported products reached sky high levels.

Ben Bernanke Speaks in Washington


  • Sudden fiscal contraction should be avoided
  • Growth of national debt ‘clearly unsustainable’
  • Maintaining budget status quo ‘not an option’
  • Growing debt risks ‘serious economic consequences’
  • Political leaders must avoid ‘brinksmanship’
  • Failure to raise debt limit would be self-defeating
  • Urges politicians to craft long-term fiscal plan
  • Prioritizing payments could still rattle markets
  • Debt limit ‘wrong tool’ to force budget cuts
  • Sudden contraction risks hurting fragile recovery
  • Long-term plan for debt reduction is needed

Bernanke on the Wires


  • Using debt limit as bargain chip ‘quite risky’
  • ‘Risky Approach’ not to raise debt limit if needed
  • Failing to raise debt cap would hurt all borrowers
  • Worst debt outcome would be ‘destabalized’ system
  • Doesn’t see ‘a lot of crowding out’ of investment
  • Debt is significant long run problem
  • ‘Greater risks’ in fiscal situation
  • Stimulus package probably increased employment
  • Reducing unemployment helps migrate foreclosures

Bobbys Corner-Open Market-April.27.2011

bob-slade-forex-trading-6-150x200Good Morning:

Risk was back on center stage overnight-as Australian CPI data posted better than expected-pushing the Aussie through the 1.08 handle.
In the UK-GDP printed at .5%, which showed that the UK economy is fairly robust, even with their austerity measures and weak consumer sentiment.  The GBP rallied as many investors were anticipating weaker data.

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