United States banking professional analyst Dick Bove pointedly noted that in its research reports, the Federal Reserve (FED) has been " lost all real reason " to force banks to further financing practices may United States economic risk risk of reappearance of the great depression.
the Rochdale securities company (Rochdale Securities) analysts believe that the Fed's quantitative easing is a " fiasco ", because of the move simply pushed up asset prices, but injecting funds very little of the real economy.
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2008 year, the Fed has bought $ 1.7 trillion the US debt, low long-term interest rates for the benefit of United States banks. After 3 years, the Fed account has accumulated $ 2 trillion, including the 1 trillion dollar asset-backed bonds. Some even believe that own bad debts on a lot of the Federal Reserve, the Fed probably will have to set up a bad Bank.
he said " these figures imply, second round of the banking system has not been quantitative easing (QE2) invested funds into the real economy. They simply to save money back into the Fed there. New money without creating any noticeable impact, only asset prices pushed up. Extraordinary "
Bove argument is that: first, he also fed assets scheme a few months ago (Troubled Asset Relief Program) appreciated the added, saying it could be " the most successful in the history of Government plans to ". Secondly, his large amounts of poison words are directly aimed at the Federal Reserve officials Tarullo (Daniel Tarullo) recent proposals: Bank capital reserve should be higher than the requirements of the Basel III 20%-more.
he said " unfortunately, I think these people are crazy, just because Bill of duodefulanke (Dodd/Frank Act) was passed. However investors may believe, if it so, bank sector stocks destined by seedlings, is why this silly most of the recommendations into reality. &Quot;
the US Federal Reserve Chairman Ben Bernanke (Ben Bernanke) last month to appear before the Senate Banking Committee on financial stability Oversight Board (Financial Stability Oversight Council, FSOC) hearing said in prepared testimony, is expected to publish a set of related regulations this summer. In accordance with the Bill of 2010 by duodefulanke of the financial regulations will involve strengthening of capital requirements and the Federal Reserve Bank stress tests of the year.
