The term ZIRP (Zero Interest Rate Policy) has been cited in print since at least 2000. but became popular during the financial crisis of 2008. Some financial observers during the crisis speculated that the Federal Reserve would have a “ZIRP forever” policy.
The name of “ZIRP 4 eva” or “ZIRP 4eva” or “ZIRP4EVA” has been cited in print since at least November 2009.
The Big Picture
NFP/Unemployment Charts Get Fugly
By Barry Ritholtz - November 6th, 2009, 11:08AM
November 6th, 2009 at 11:13 am
Great news! ZIRP 4-eva = markets go up ad infinitum…..Buy, Buy, BUY!
Until the dollar is worth exactly zero.
From Dennis Lockhart’s Prepared Remarks: “ZIRP 4 Eva”
Submitted by Tyler Durden on 04/15/2010 13:56 -0400
Dennis Lockhart leads the doves on parade today, by saying that there “is risk associated with starting a process of tightening too soon..” Too bad neither he nor the other dove, Bullard, sees the same bubble risks that George Soros is believes will lead to the greatest market crash ever. Indeed, St. Louis Fed’s James Bullard, speaking at the Levy Economics Institute, said the economy is not having a “super strong recovery,” but called it “robust” and “very reasonable.” When the time comes, Bullard suggested he would not want the Fed to raise rates as slowly and incrementally as it did earlier in the decade.
Ben Bernanke, ZIRP 4EVA! T-shirt
Show your support for Dow 36,000 and hyperinflation everywhere!
Product id: 235093632478025073
Made on 5/2/2010 10:18 AM
San Francisco Fed Makes The Case For ZIRP4EVA, Says No Need To Fix Fed’s Bloated Balance Sheet
Submitted by Tyler Durden on 06/14/2010 13:47 -0400
Well, not really 4EVA, but the uberdovish FRBSF has just released a paper by Glenn Rudebusch, in which the author claims “that to deliver future monetary stimulus consistent with the past—and ignoring the zero lower bound—the funds rate would be negative until late 2012.” In other words, a realistic outcome over the next two years will involve not only ZIRP, but additional QE to satisfy the differential to the zero limit. Furthermore, once the economy fully relapses into a double dip, which should be confirmed at the latest by September, Bernanke will have to flush even more money into a monetary stimulus rescue, as the president’s fiscal hands will be tied in advance of a landslide mid-term election loss.
Monday, July 5, 2010
Small Business and Consumers Static Economically at Best; Policy and Investment Implications
ZIRP 4EVA (zero interest-rate policy forever)?
Wall Street Examiner Forum and Bears Chat
Posted 26 August 2011 - 08:49 AM
el dude has been trying to get this point across for awhile.....its all about expectations and mind games. QE did not bring yields lower, quite the opposite, in fact. Now that the Bernank is “only” gonna give us ZIRP4EVA and do a bunch of swaps with the ECB and EU banks, look for some very confused and fearful market action.
ZIRP4EVA means a liquidity trap pure and simple
Posted on February 7, 2012 by maxkeiser
We will have ZIRP forever which means deflation forever. Interest rates and wages will continue to trend lower. And with the loss of competition that comes with deflation – monopoly pricing for food and energy means higher prices for these staples.
Taylor Rule Founder Warns US Debt Could “Explode”
Submitted by Tyler Durden on 02/07/2012 11:37 -0500
What changes does Taylor recommend? Why the same that Bill Gross warned about yesterday - that ZIRP4EVA means a liquidity trap pure and simple, and the Fed needs to start rising rates: “the Fed has bought so much of the debt that people don’t know how they’re going to undo that. They pledged to have interest rates at zero until 2014, but people are saying how can they possibly do that when the economy picks up. This uncertainty had lead people to sit on all this cash. I think if the Fed gets back to the policy that worked pretty well in the ‘80s and ‘90s, we would be in much better shape.”
New York City • Banking/Finance/Insurance • (0) Comments • Friday, February 10, 2012 • Permalink