No. of Recommendations: 2
I have posted before about my firm conviction that the Fed's massive and growing balance sheet cannot ever be unwound (and that all the monetized debt will have to be held by the Fed until maturity, and then rolled into more debt). If such is the case, there will be no need for any student or investor to analyze the likely effect of Fed asset sales, since none will ever be sold.

That said, I can think of a couple of excellent PhD Dissertation topics in Math (not Economics, since Economics is voodoo, not science), as follows:

1. A Dynamic Predictive Model for the Effects on Equity and Bond Markets of a Sale by the Federal Reserve of Assets Acquired from 2009 through 2013: A reverse analysis of the effects on the markets of Federal Reserve asset acquisitions.

2. A Mathematical Analysis of the Distortion of Stock and Bond Market Prices Directly Attributable to Federal Reserve Activity: A detailed measurement of the deviation from normal trading ranges over time.

In both cases, the PhD candidate could demonstrate proficiency in controlling and adjusting for currency and gold fluctuations relative to the prices of assets under Federal Reserve market manipulation.

I'm sure that other board members (especially Wendy) could come up with some much better topics along the same lines.

If the Fed's current "unconventional" activities ever cease or are in danger of ceasing, such an analysis would be greatly sought after - and the PhD candidate who researched and presented one or both of these papers would potentially set themselves up for a Nobel Prize or a future Fed Chairmanship.

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