Posted by Curt on 30 October, 2013 at 9:41 am. 4 comments already!


Anthony B. Sanders:

How well is Fed monetary policy working on the employment front?

Last month, The Fed purchased $85 billion of agency mortgage-backed securities and Treasury debt. The ADP jobs report this morning indicated that only 130,000 jobs were added in October. That is $653,846.15 per job added

I have no doubt that The Fed will keep on printing at a rate of $85 billion per month, growing the Fed Balance Sheet.


But with slowing ADP job growth, the cost per job added is growing with the $85 billion per month in Fed asset purchases.


But as long as house prices (white line) and the stock market (green line) take off with Fed asset purchases (bubbles) …


And if I overlay the declining ADP private jobs added (purple), we get this “bubblicious” chart.

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