2011 April FIRE Policy News

Issue Date: 
April, 2011
Newspaper PDF: 

The April issue of FIRE Policy News analyzes the merger of the company that owns the New York Stock Exchange with a German firm, discussing what the merger does – and does not – symbolize.

Also in this issue:

  • The Federal Reserve’s QE2 policy has raised food prices worldwide, contributing to protests in Tunisia, Egypt, and elsewhere.
  • The Fed’s monetary policy has been the target of much criticism as QE2 has produced confusion and uncertainty. These reactions reflect serious errors by the Federal Reserve.
  • Financial analyst and Daily Reckoning.com editor Eric Fry says blind monkeys could have done a better job protecting the value of the dollar than the Federal Reserve has managed since its creation nearly 100 years ago.
  • Housing market data are notoriously difficult to understand – no two houses are alike, many buyers and sellers are driven by emotion, we don’t know the prices of houses that didn’t get sold, and we don’t have data on allowances used to report a higher price than was actually paid. And since the financial crisis, the federal government has been intervening in the housing market in ways that make the data even more difficult to interpret.
  • When state and local governments want to spend more than they collect in revenues, they issue bonds. During the past decade they have spun out of control – since 2000 the total outstanding state and municipal bond debt, adjusted for inflation, has soared from $1.5 trillion to $2.8 trillion. The recession didn’t slow the increases in spending.

Newspaper Articles in this Issue

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