Gross: Fed Policies May Be Destroying Credit, Not Creating It

The Federal Reserve has for the past few years maintained a low interest rate policy in order to make credit easier to obtain and growth easier to come by. But PIMCO’s Bill Gross says that policy — and the Fed’s announcement that it will continue it for the next two years — may be having the opposite effects. “Pilot [Ben] Bernanke has changed planes from a fixed wing to a rotor-based helicopter by ‘conditionally’ freezing policy rates for at least the next two years,” Gross writes of the Fed chief in a recent Financial Times piece. “As such the front […]

Siegel: Stocks Cheap; Fed Needs to Do a Bit More for Economy

Wharton Professor and author Jeremy Siegel says stocks remain “so cheap”, but he thinks the Federal Reserve needs to do a bit more to help the economy work through its recent soft patch. Siegel tells Bloomberg that he’s not talking about another round of quantitative easing, but instead other measures that would encourage banks to lend the money sitting on their balance sheets. Siegel says he expects GDP to accelerate to the 3% to 4% range in the second half of the year. He’s also shifted his stance on interest rates, saying the Fed should hold off a bit on […]

Rogers: Let Greece Fail

Commodities guru Jim Rogers says that Europe should let Greece default on its debt, and that the U.S. Federal Reserve needs to stop printing money, or else risk creating another serious financial crisis. Rogers tells Bloomberg that history shows the longer one delays dealing with a debt crisis, the more trouble it creates. He opposes further Greece bailouts, saying they are really bailouts of banks from France, Germany, and other countries that made bad loans in Greece — and he says other European taxpayers shouldn’t have to bail out those banks. Rogers also has harsh words for the Fed, saying […]