My guess is that the Fed chairman knows that we still have too many banks overstuffed with toxic real estate loans and derivatives.
Federal Reserve Chairman Ben Bernanke’s $600 billion quantitative easing program has been roundly criticized in this country and around the world. So why is he doing it? Does he know something the rest of us don’t?
Mr. Bernanke claimed earlier this month in a Washington Post op-ed that “higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending.” But, as Mr. Bernanke must know, the Japanese have been trying to influence their stock market for 20 years, with little effect on their economy. It is also unlikely, as some claim, that the Fed chairman … —-> Read More —>>
In the same vein:
About Andy Kessler
Andy Kessler is a former hedge fund manager turned author who now writes on technology and markets.
Andy Kessler was co-founder and President of Velocity Capital Management, an investment firm based in Palo Alto, California, that provided funding for private and public technology and communications companies. Private investments included Real Networks, Inktomi, Alteon WebSystems, Centillium and Silicon Image.
In the early '80's, Andy spent 5 years at AT&T Bell Labs as a chip designer, programmer, and spender of millions in regulated last minute, use it or lose it budget funds. In 1985, he joined PaineWebber in New York, where he did research on the electronics and semiconductor industry and was an “All Star” analyst in the Institutional Investor poll.
In 1989, Andy joined Morgan Stanley as their semiconductor analyst, and following in the footsteps of Ben Rosen, he added the role of technology strategist and helped identify long-term, secular trends in technology.
