Summary
[...] even while second-quar- ter real gross domestic product is expected to fall by 1% to 2% annually - much better than the 6% declines of recent quarters - the third quarter could show a small positive GDP score. [...] for all the Fed's stimulus, which has had a salutary effect on the banking crisis, the lags are long and variable. [...] as former Dallas Fed head Robert McTeer has written, much of the central bank's balancesheet expansion is being hoarded by commercial banks, with banks holding about $800 billion more than what they're required to hold. [...] these excess reserves come way down, the impact of the Fed's monetary stimulus will be more muted than has traditionally been the case in Milton Freidman's monetarist model.
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Obama's Spending Binge Won't Solve Jobs Crisis
After nine months of explosive monetary and fiscal stimulus, you'd think economic recovery would be upon us. But the June jobs report tells a much different story.
Non-farm payrolls fell by 467,000, as the unemployment rate edged up to 9.5%. This isn't...See the full content of this document
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