Just what I said here, http://www.elitetrader.com/vb/showthread.php?s=&threadid=177872 and by the way Peter Boockvar at Miller Tabak thinks the same, even Roubini says Fed is taking big risks. The absolute recklessness of the Fed is in communicating they are there for an extended period of time. Why they say that is beyond me , for me they are criminals as Marc Faber puts it. They are causing the income gap to widen , causing misallocation of resources and destroying the environment with promoting hypergrowth in emerging economies . That's a crime against humanity. No more no less.
Come on, we all know the fed is always late to raise rates, as I type this right now there is another commodity bubble in the making, the longer they sit and wait to push rates higher the more problems that this economy goes through, its not healthy to keep rates near 0%, even Australia raised their rates .25% to 3.25%. The fed is just creating more future asset bubbles with rates down at historical lows. It should be fair to say that rates SHOULD be nearing 1% by mid 2010 and 2% by end of 2010. With commodities moving higher something needs to be done, its only going to hurt the economy leaving rates where they are now. The dollar is on the verge of collapsing and NO one seems to have a care in the world.