QE Shifts to QT

by Marilou Long on September 21, 2017

in Banks,Credit Crisis,Fed policy,inflation/deflation

During the financial crisis, the Federal Reserve invested trillions of dollars in credit assets in order to keep markets and the economy from collapsing in a process known as quantitative easing, or QE.  The Fed announced yesterday that it would start to withdraw that support, and market participants have already started calling it QT, or quantitative tightening.  From the linked New York Times article:

WASHINGTON — Nearly a decade after the Federal Reserve embarked on an unprecedented effort to shore up the collapsing American economy, the central bank said on Wednesday that it would begin withdrawing some of the trillions of dollars it invested in the wake of the 2008 financial crisis.

The decision, while widely expected, is nevertheless a significant sign that the Fed is confident that economic growth and low unemployment will continue. In other words, the central bank believes that the American economy has emerged safely from the crisis.

“The basic message here is U.S. economic performance has been good,” Janet L. Yellen, the Fed’s chairwoman, said at a news conference following a two-day meeting of the Fed’s policy committee.

The Fed’s retreat from its post-crisis stimulus campaign will be slow but steady as the central bank looks to shrink the enormous $4 trillion portfolio it amassed through a bond-buying spree.

{ 0 comments }

Facebook Advertising

by Laura Ehrenberg-Chesler on September 15, 2017 in politics

With all the uproar over inclusion and sensitivity these days, I find it remarkable that Facebook, whose CEO Mark Zuckerberg had spoken out loudly about these issues, would enable Jew haters to advertise to their audience freely and easily. It shows a complete lack of concern about the very issues Facebook says it cares most […]

Read the full article →

U.S. Dept. of Energy Infrastructure & Energy Restoration Report

by Marilou Long on August 30, 2017 in Energy

Here is the link to this morning’s report on the damage to infrastructure and energy facilities across Texas and Louisiana.

Read the full article →

Hurricane Harvey – A Geopolitical Force of Nature – courtesy of Geopolitical Futures

by Marilou Long on August 30, 2017 in Energy

We all know friends and family who have been affected by this terrible storm, and it isn’t even over yet.  The storm made landfall again this morning in Louisiana.  Geopolitical Futures, headquartered in Austin, sent out an interesting article this morning about the hurricane.  From the linked article: What’s happening to the U.S. Gulf Coast […]

Read the full article →

Shale Output Hits New Record

by Marilou Long on August 15, 2017 in Energy

Shale output driven by the Permian Basin is estimated to reach a new record by September of 6.2 million barrels a day.  From the linked Bloomberg article: Oil output from major U.S. shale plays is poised to reach a fresh record next month, further complicating OPEC’s efforts to support prices. The gain is being led […]

Read the full article →

Better GDP

by Laura Ehrenberg-Chesler on July 28, 2017 in Economic Indicators

This morning we got a good read on second quarter GDP, up 2.6% and just shy of the 2.7% expectation. The number is a welcome change from the 1.2% figure from the first quarter. We are in the third longest, but also the slowest, expansion since WWII with growth averaging around 2% for the past […]

Read the full article →

An Excellent Quote to get your Weekend Started

by Laura Ehrenberg-Chesler on July 14, 2017 in Employment

I was recently sent a quote from a private equity firm based in Florida. It is from Thomas Edison and is a great reminder about how opportunity often presents itself. “Opportunity is missed by most people because it is dressed in overalls and looks like work”. Happy Friday from Crossvault

Read the full article →

The Soul and Soles of a Texas Boot Maker

by Marilou Long on July 11, 2017 in Recommended Reading

This New York Times article about Rocky Carroll, boot maker to presidents and popes, is a good read.  From the linked article: HOUSTON — One afternoon a few years ago, Rocky Carroll told me about the time he pulled his gun on those robbers outside his boot shop here. It was 4:30 a.m. that July […]

Read the full article →

American Factories “Power Up”

by Laura Ehrenberg-Chesler on July 5, 2017 in Economic Indicators

American factories powered up in June at their fastest pace in nearly three years according to Bloomberg. The following are the highlights from Monday’s Institute of Supply Management report: 1. Factory index rose to 57.8, highest since August 2014 (est. 55.3) from 54.9 in May; readings above 50 indicate growth 2. ISM’s gauge of new […]

Read the full article →

Nostra Signora della Solute in Volastra, Italy

by Marilou Long on June 29, 2017 in Crossvault Capital

This is a wonderful example of a crossvault from a church dating back to the twelfth century.

Read the full article →