Why couldn’t we let the market set the interest rate?
Too much faith is being placed in untested economic theories that may or may not work, or may or may not even be correct
It seems clear that the likely outcome is a systemic default on systemic debt in real terms so that nominal defaults can be avoided
The Fed is stalling for time and hoping that the economy will inexplicably roar back to life
When the financial markets no longer reflect the human condition, authorities must answer to true power – the marketplace.
We think Tim Geithner (with Bill Dudley as an alternative) will take over the Fed when Ben Bernanke steps down next January, and it seems by all indications that the table is already being set.
The magnitude of the systemic leverage problem will be met with equal inflationary force.
The age of truly easy money may be just getting started.
In light of today’s Fed decision…
Although the Fed is directing its fire towards the housing market, the needle they are actually hoping to move is not home prices, but the unemployment rate.
The biggest winners thus far that may have resulted from the newly communicated intentions from central banks are not the euro or the broad stock markets, but rather gold and gold-related investments.
You’re bailing out banks’ ability to profiteer off the economy and sell all of the junk mortgages that they’ve got from Countrywide Financial and the other big fraudulent, criminalized financial agencies.