December 2013 Fed Meeting Review
Podcast Summary
0:00-2:26 intro
Has the Fed Met its Objectives?
2:26:6:30 discussion of Fed’s tapering of quantitative easing (QE) decision, ceremonious exit for Bernanke, Bernanke’s claim that the Fed has met its objectives, Fed tapers to keep options open to further taper; discussion of economic data and its impact on further tapering moves; market reaction to the taper
Bernanke’s Legacy
6:30- 14:15 review of the mechanics of QE; why the Fed tapers; cigarettes and alcohol; the damage already done by QE irrespective of tapering a small amount; Fed’s contention that asset purchases are a “secondary option”; Fed comments on availability of capital; Bernanke’s legacy and why the taper took place; the Fed and the labor market; inflation; unemployment rate
Tapering Impact on the Stock and Real Estate Markets
14:15-16:50 impact of regulation, availability of credit and unemployment on real estate; tapering impact on the real estate vs stock market; Fed’s loss of control of the bond market
16:50-19:30 The impact of low inventory, underwater homeowners and lack of new home buyers on the real estate market; the Fed’s “accomodative stance” and who benefits
19:30-20:40 alternative financing
What’s Next for the Fed
20:40-23:30 -discussion of why the Fed has determined that further tapers of QE are data dependent but keeping interest rates at record low levels are not;tapering is tightening; taper talk; how the Fed keeps control of interest rate; impact of the taper on real estate and other speculative assets
23:30-26:30 the direction of interest rates and what might impact them,
26:30-29:45 unwinding the Fed’s portfolio; advantages of the 30 year mortgage and it unavailability
29:45-32:00 the impact of the Fed and macro economics on the real estate market
Wall Street vs Main Street
32:00 – 37:30 wall street vs main street; household formation; NAR -good time to buy! good time to sell!
37:30-40:40 researching a town’s finances before buying a home in that town
40:40-43:10 home ownership association fees
43:10- 47:10 low interest rates and home buying
Why Tapering Won’t Help the Real Estate Market
47:10 – 50:40 stock market vs housing market; the flaws of the Federal Reserve system; Bernanke and gold price
50:40- discussion of the GDP number and its impact on the Fed’s taper decision
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Further Reading:
December 2013 Fed Meeting Review
October 2013 Fed Meeting Review
September 2013 Fed Meeting Review
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