Aug. 25 (Bloomberg) -- Goldman Sachs Chief Global Economist Jim OâNeill said a spate of âdisappointingâ U.S. economic reports may prompt the Federal Reserve to embark on a fresh round of quantitative easing. Recent reports on jobless claims and manufacturing point to slower growth in the worldâs largest economy. Sales of existing houses plunged by a record 27 percent in July, figures from the National Association of Realtors showed yesterday. âIf we carry on with data like this, yes, itâs coming,â OâNeill said, referring to quantitative easing. He spoke in an interview on Bloomberg Televisionâs âInsideTrackâ with Deirdre Bolton today. âSeptember might be a little bit soon, but by October I would say for sure if the data carries on being as disappointing as itâs been.â Fed policy makers on Aug. 10 made their first attempt to bolster the economy in more than a year, saying theyâll maintain their holdings of securities at $2.05 trillion to prevent money from draining out of the financial system. The Federal Open Market Committee said in a statement that âthe pace of recovery in output and employment has slowed in recent months.â Fed officials held mixed views of the outlook, according to the minutes of their June meeting. The minutes said âa few participantsâ saw âsome risk of deflation,â while others âthought inflation was unlikely to fall appreciably.â âIf the Fed moves toward more quantitative easing, as I think we will, then financial conditions stay very easy and that gives some support to the U.S., but most importantly,â it bolsters the rest of the world, OâNeill said. http://noir.bloomberg.com/apps/news?pid=20601087&sid=ay7MeBjGTZpU&pos=5 The government = O`Neill has just spoken.
The Fed has limited powers. It cannot counter the mess that Obama and the Democrats are getting us into !!
Agree wholeheartedly. But let's not forget what an A-hole Bush was.... he also did LOTS of damage to America.... (Too bad he just didn't buy a Corvette to bolster his "little pee-pee complex"... we'd all be a lot better off.)
O'Neill = idiot. The dude has been auditioning for Larry Kudlow's job for some time now. Now, w/the 10 year down to 2.45 and the 2 year down to 0.45, he finally sees some trouble. If I had the stones, I'd fade the shit out of this ahole right now.
Doubt "QE II" will do anything for the economy. Banks are already flush with cash on their balance sheets. Many desiring borrowers are "marginally or non-qualified", so banks don't want to make loans to them. Other companies don't have a need nor a desire to borrow. So.... what benefit is it to do "more QE" to bolster banks' balance sheets even further? Obviously, "pushing on a string".... yet another failed policy of DUMBASS OBAMA! If there were any justice in this world, Obama would hold a press conference and acknowledge... "he's not up to the job"... and resign. Unfortunately for all of us tax payers, he's got many MANY more vacations yet to be taken at our expense..
I know right, I bet if we go to the white house, all you would see in the oval office is a mannequin with a fake phone staring straight out the window. With a sign on the table saying bring all documents to blah blah blah.
LOL. Hell, I would have bought the Corvette for him--it would have cost me less than what he started. But seriously, Corvettes just do not work in places like Crawford, TX. They really bog down when dust and scorpions get into the air intake.....