Fed vs. bubbles?
There is no problem created by the Federal Reserve that the Fed can't make worse. As evidenced by the news today…
The US Federal Reserve is reconsidering the way it deals with asset
price bubbles in the wake of the housing and credit bust, in a move
that could see the central bank using regulation – or even interest
rates – to fight unjustified increases.Top officials are
re-examining the Alan Greenspan doctrine that central banks should not
try to tackle asset bubbles and should focus on mitigating the fallout
when they burst.
The amazing thing about this Financial Times story is that nowhere is it acknowledged — nowhere is the possibility even broached — that the Fed itself just might be responsible for creating asset bubbles. Bubbles evidently are organic things, the product of spontaneous forces that have nothing to do with the creation of excess money and credit.
So now we're left with the question of what new powers the Fed might choose to assert if it opts to start "using regulatory policy more aggressively to try to contain bubbles." Frankly, the mind boggles. I'm sure the folks at GATA have some ideas.
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Question: How do you know the Fed is lying?
Answer: Their mouth is moving.
Aren’t these the same asshats that get in front of Congress and make some mumbo jumbo speech about inflation “expectations” or “perceptions” as if they were humpty dumpty and math is what they tell you it is. If I believed only half of their codswallup then I should be able to close my eyes, click my heels three times and chant “there is no inflation” and then open my eyes and gasoline will be only .45/gal again.
I don’t believe anything the Fed says, only what is DOES, as actions speak louder then words.
Comment on May 15, 2008 @ 11:46 am
The other morning, the wife of our favorite mystic, the Oracular Somnamblator Greenspan was yammering on the telly about the campaign. She is attached to the Clinton Campaign and when asked about the candidate’s campaign debt and urgent pleas for money, she replied something to the effect that “it’s only money” and that the Clinton Campaign has more important things to concern itself with.
Perhaps the Greenspan Family really does think money an extraneous issue . After all, one merely needs paper and ink to produce the stuff by the Weimar Wheelbarrow load.
Comment on May 15, 2008 @ 1:59 pm
Guys,guys, don’t be so cruel whith the poor people from Federal Reserve!
I suppose , now , almost twenty years after the collapse of Soviet Union (USSR), they try to show us how that happened, by making a practical recreation of it here in USSA…
You should love them for that…And can you immagine how much money costs a such a recreation?…Do you?!
Comment on May 17, 2008 @ 12:37 am