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In today’s news…

March 29, 2012

On February 16, 2012, I wrote: “If I were a financial reporter, this is the question I would be asking: With all this positive and unexpected good news about the economy, is it safe to assume our central banks no longer need to manipulate (the economy with) monetary policy? No more QEs; no more purchasing long-term bonds and mortgage-backed securities; and no more zero-rate interest policy?”

A report found at Yahoo Finance today had the following quote:

“U.S. data shows weakness in the economic recovery. That really confirms what the Fed Chairman, Bernanke, said last week that the Federal Reserve has to continue loose monetary policy in order to aid economic recovery and employment,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong.

Need I say more? Has anyone seen ‘conformist self’ lately? Maybe he has an answer to these apparent conflicts in what the Fed says and what they do! How ironic that on the heels of the best quarter for the financial markets in 14 years, we would already be justifying more monetary easing.

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