You're now on the archive server. Commenting has been disabled.
Submitted by Nathan Burchfield
The key criteria to my (MPFMEID) approach is psychologically profiling and studying individuals who make the economic prescriptions i.e. monetary authorities, key politicians, key academics, and financial professionals. I do this by reading their books, essays, speeches, and whatever else I deem important as possibly to helping see the world as they do. As I am studying the specific individual, their essays, and books I begin to approach the markets as they do.
An indepth and thorough perspective... but this afternoon, when Bernanke postured after he was asked by Bloomberg News if the Fed is crafting policy for the assumption that labor markets will not recover as the economy returns to very modest growths rates, you don't have to be Freud to recognize that he had just shit himself.
I think Bubble Ben just showed what an embecile he is. He said it was difficult to "identify misalignments" when asked about potential bubbles in stocks/bonds. Uhhh, no one knew we were in a tech bubble, and no one knew we were in a real estate bubble? The best and brightest were completely unaware that these were asset bubbles. Hint to all the PhD's who are supposedly "experts" running our financial system: When you have an upstart company that isn't making any money, and has a higher market cap than GE, you're in a tech bubble. When you have hit TV shows called "Flip that House" - you're in a real estate bubble. When you have bearded "Inwestor" deuchebags enticing people to look at managed futures, and every asset class simultaneously moving up, with the EXCEPTION of real estate - you're in a liquidity bubble.
I'm now ready to accept my Nobel Prize for Economics.
Nathan, I hope you will continue to post more FED points of view.
As an American I am completely and utterly incapable of disputing any of the facts that you present, because the FED is under no obligation to disclose the facts.
Well you might say Trust me, trust us, the FED, where we control our own balance sheet, and are under no obligation to present the truth to the people of whom's money we control.
If we follow the actions of the FED, and what it is like to be a FED Chairman, the evidence is clear, that the FED works in the best interests of its member banks, and not the American people.
Having said this, please let me provide my point of view on your report;
Forgive me, but your report does not really expose anything important about what a FED chairman really knows. It looks more like window dressing and misdirection from the FEDs PR department.
Lets talk about history, shall we, and I want to be as clear as possible.
The FED was given power as the systemic risk regulator over the Bank Holding Companies, and its failure at controlling systemic banking risk (derivatives), and the inability to tighten credit effectively (Price bubbles), caused the financial crisis. Greenspan was key player in merging commercial and investment banks into bank holding companies, a mistake he admits, and viewed by other wealthy nations as severely misguided.
Your report talks about the FEDs limited options to solve a problem, through lack of oversight and inaction, the FED primarily created.
Well sir, with the 300B in Treasury buy, the FED was directly engaged in QE, and with the RMBS and CMBS purchases, you are now also engaged in QE through unbacked securities. How can you deny debasing the currency? or have the nerve to say you are protecting the dollar?
Lets talk like big boys and girls, shall we:
I think you would agree that without central control of fiscal and monetary policy in the US, there will not really be any way to protect the USD. The combination track record of irresponsible Fiscal and Monetary policies, puts the economic health of the US in jeopardy, and is an injustice to the American people.
In closing, please teach me what we can expect from the FED,
Nathan explain how you are going to protect the dollar during the next 10 years, in an environment of escalating fiscal debt and monetary easing?
Mind you, it is refreshing to have a totally novel viewpoint..
although..i) We are in a Recession -as per Fed Employment stats- and ii) fixing the Bank Credit markets isn't really the same thing as fixing the Real Credit markets. Also iii) if it isn't up to Ben to suggest policy at the major Central Banks then what is he doing opening fairly sizeable Currency Swaps between these?
It's a nice analysis, fits the data beautifully.
Perhaps if he had been more of an historian than an econometrist he might have divined that Credit markets prefer to fix themselves..I mean, look at the quality of information we have today.
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
Notice on Racial Discrimination.