LOL.. You know when something is better left unsaid because mentioning it ruins the fun of the inside joke? yeah, this is one of them.
really, it's his job to react. it's the market's job to act. *** my only observation about the new Fed chief is that he seems -- and this is just a sense -- he seems to be a bit scared. at least, the sequence of pronouncements suggests that to me, as have most of the headlines this week -- but that's entirely subjective.
Excellent commentary. My only problem is that our national debt is financed in [short-term] treasury bills. What are we going to do to stop this inflation? The only way to slow inflation is to tighten monetary policy--raise rates. What happens when we are paying $1+trillion in interest on foreign debt? How is this game of Writing Checks We'll Never Cash going to solve anything? Lowering rates won't solve anything, it will only push the problem to a later date, and the more we push it off the worse it's going to be. Is the fed going to have $2 and $3 trln TAFs??!? This isn't liquidity issues, it's inflated paper assets being repriced, it's bankrupcy. You're absolutely right we are in serious, serious trouble.
I do believe you're right. Savers had been pummelled under Greenspan perhaps unlike any other time in US history, and Bernanke seems to be a quick study. The cautious are paying for the mistakes of the lazy and stupid. If Aesop were alive today, I wonder if he would have to rework his fable about the ant and the grasshopper.
the fed's is choosing a semi-repeat of the 70's to avoid a 30's repeat. and they are right to do that