Putting A Face To Einstein's Definition Of Insanity

Tyler Durden's picture


If ever there was a name and a face synonymous with Einstein's famous definition of repeating the same action and expecting a different unicorn-full world of happiness, it is Boston Fed's Eric Rosengren. Thankfully far from consensus among the Fed heads - though worrying fanatical - the hyperinflationary head used the propaganda channel this morning to pump hope into an increasingly skeptical market. In an effort to pre-empt a possible slowing global economy, his prescription is "open-ended quantitative easing triggered on economic outcomes". Fearful of the US merely treading water, Rosengren sounds like he admits that it's all about the flow when he shuns pegging interest rates as a 'trigger' since this removes control of the Fed's balance sheet to market forces (in other words - we need to keep printing and expanding the balance sheet no matter what rates or stocks are doing). Stunningly, the only limiting factor he sees to this open-ended print-fest is the size of the asset markets they are buying in - which he would like to see in MBS (and suggests his disappointment at the limited scope of assets available to the Fed). Just under nine minutes sums up the extremely dangerous experimental mind of an eternal optimist "if at first (or second, or third) you don't succeed..." as he shuns the impact on (transitory) energy price rises by pointing at the lack of inflationary pressures.



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Tue, 08/07/2012 - 10:34 | 2684543 vinu02
Tue, 08/07/2012 - 10:37 | 2684556 fireangelmaverick
fireangelmaverick's picture

How about an open ended lobotomy program for all Fed-heads?

I think we should try ot pre-empt their stupidity by slicing off their Frontal Lobes, assuming it evolved at all.


Tue, 08/07/2012 - 10:40 | 2684574 Lost Wages
Lost Wages's picture

Yeah, they are already void of empathy or intellect. I don't think a lobotomy would change much.

Tue, 08/07/2012 - 10:44 | 2684592 bigdumbnugly
bigdumbnugly's picture
Putting A Face To Einstein's Definition Of Insanity

i was fully expecting a picture of robot trader there.


Tue, 08/07/2012 - 10:59 | 2684639 Pladizow
Pladizow's picture

The insanity quote - is NOT Einstein's!

From page 68 of Rita Mae Brown's 1983  book Sudden Death.

Tue, 08/07/2012 - 11:08 | 2684690 Precious
Precious's picture

He didn't coin that.

Tue, 08/07/2012 - 12:27 | 2684851 engineertheeconomy
engineertheeconomy's picture

We need to print more so we can pay off our D.E.B.T. (Destruction, Extortion & Banker Totalitarianism)

Tue, 08/07/2012 - 16:00 | 2685651 Noktirnal
Noktirnal's picture

I never understood the quote being attributed to Einstein. Until recently, the only people that used this quote were people who attended AA meetings, or other 12 step programs. It's apparently one of their teachings. However, it is not the definition of insanity.

There are lots of situations, real and imaginary, where equal (read same) actions can produce different results. There are always external conditions (read variables) which can cause different results for the same actions. It happens all the time in science. Scientists are always doing experiments over and over. If it's the same scientist, he/she usually expects the same results over and over, unless the result was unexpected. Sometimes a different scientist will repeat the experiment expecting different results based on his own hypothesis, attempting to refute the former. Sometimes the latter agrees with the former hypothesis, and re-experiments to prove the former right. He/she also can get similar or different results. It is the nature of reality on the most basic level. I think repeating to see if the result is repeatable is perfectly sane. (In most circumstances; sometimes it just isn't wise and/or logical [or safe] to do so.)

Basically, I think the quote, whomever it may have come from, is total nonsense (read BULLSHIT). Even if observers may not like or agree with  the results or consequences of another's actions, I think that if the person keeps repeating the actions and keeps getting the same result is intending on getting those results, no matter how unintended the consequences may seem to those observing. Blaming insanity is a cop-out.

WE ARE ALL INSANE. We live on an insane rock, flying around an insanely large thermonuclear explosion that has been and will be going on for an insane amount of time. More insanity that there are hundreds of billions of other explosions all around of all different sizes and lifespans. Some are really, really insane to think about. All of these are flying at insane speeds around an insanely massive black hole, while the whole thing spins and flies at insane speeds through the universe among an estimated 125 billion others (most likely more) all flying away from each other at insane speeds from and as a result of an insanely large explosion of an insanely small object... and this whole thing just may be flying around at insane speeds in an insane soup of others. The really insane thing is it may just all be the figment of an insane collective (and/or singular) imagination.

Insane, huh?

Insanity sure is crazy and chaotic, but almost never boring.

Tue, 08/07/2012 - 10:54 | 2684634 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

I vote for the lobotamy, however he is not insane, just a corrupt mouth piece.

Tue, 08/07/2012 - 11:08 | 2684687 A Nanny Moose
A Nanny Moose's picture

I prefer a bottle in front of me.

Tue, 08/07/2012 - 12:38 | 2685056 Ying-Yang
Ying-Yang's picture

A gelding would be proper.... holds the number of offspring down.

Tue, 08/07/2012 - 13:48 | 2685227 Doña K
Doña K's picture

A double lobotomy is more appropriate as that will stop them from repeating.

But....let them do that and see how far they can get. Just load up on physical PM's. Listening to that, I may increase my ratio of fiat to PM's 

Tue, 08/07/2012 - 11:03 | 2684670 FL_Conservative
FL_Conservative's picture

I'll even offer to pay for it.

Tue, 08/07/2012 - 10:43 | 2684586 tuttisaluti
tuttisaluti's picture

that's not exactly the truth. somebody has to fabricate the paper, the ink, the printig press

Tue, 08/07/2012 - 10:46 | 2684602 AL_SWEARENGEN

Fed Confetti.  The two names just naturally go together.. 

Tue, 08/07/2012 - 11:06 | 2684676 FL_Conservative
FL_Conservative's picture

Boston Fed's Eric "Buzz Lightyear" Rosengren.

Tue, 08/07/2012 - 10:36 | 2684553 FOC 1183
FOC 1183's picture

He says we need open-ended QE because prior QE hasn't created growth, then says open-ended QE will not create inflation because prior QE hasn't created inflation.  Mmmkay?

Tue, 08/07/2012 - 10:40 | 2684573 Dr. Richard Head
Dr. Richard Head's picture

He is part of a lonely circle-jerk logic argument. 

Tue, 08/07/2012 - 12:38 | 2685059 Ying-Yang
Ying-Yang's picture

Is that that similiar to Fed head?

Tue, 08/07/2012 - 11:35 | 2684820 dcb
dcb's picture

yes krugman does the same thing. of course you can always state you haven't done enouhg. it's one of the reasons I think economists are so fucked up

Tue, 08/07/2012 - 10:37 | 2684557 slaughterer
slaughterer's picture

Rosengren is a national hero, bravely going where even Ben is afraid to go.  

Tue, 08/07/2012 - 10:52 | 2684624 Dr. Richard Head
Dr. Richard Head's picture

These banksters have been going in and out of my, and the rest of the politically unconnected world of serfs, arse for years.  Ben already went there, Rosengren is just chasing sloppy seconds.

Tue, 08/07/2012 - 10:37 | 2684560 RacerX
RacerX's picture

Boy, talk about ignoring the elephant in the middle of the room. The real problem is production. Simply, production has moved overseas; China, India, Mexico, Brazil, etc. Until they address the trade agreements & other things that enable/encourage businesses to move production (mfg and service), we are kidding ourselves.

More QE? Seriously? How is printing money going to do anything for anyone--other than enable the gov't to keep spending.

Tue, 08/07/2012 - 11:01 | 2684662 Bay of Pigs
Bay of Pigs's picture

Simply put, it keeps the Ponzi alive. Without it, say goodnight Irene. 

Tue, 08/07/2012 - 11:07 | 2684684 Beam Me Up Scotty
Beam Me Up Scotty's picture

That's how these idiots think they will grow the economy. With gubbamint workers digging ditches and other gubbamint workers filling them in.

Tue, 08/07/2012 - 11:27 | 2684774 saturn
saturn's picture

Did he offer a hefty bonus for gubbamints too?

Tue, 08/07/2012 - 12:24 | 2685003 Renewable Life
Renewable Life's picture

But how are the people in the US going to buy all that cheap crap from China, India, and elsewhere at Walmart, Target, Costco, and Kohls, without unlimited lending and printing!!

Tue, 08/07/2012 - 10:38 | 2684561 BeetleBailey
BeetleBailey's picture

.....of course, interviewed by the asshat pedo-faced Steve Sleezeman....

Tue, 08/07/2012 - 10:38 | 2684563 Zero Debt
Zero Debt's picture

They said QE to infinity and were ridiculed

Tue, 08/07/2012 - 10:38 | 2684564 Jason T
Jason T's picture

 .. Rudy Von Havenstein style.. 

Tue, 08/07/2012 - 10:39 | 2684567 Hype Alert
Hype Alert's picture

What ever happened to the market setting rates?


I must be inhaling some refinery fumes or something.

Tue, 08/07/2012 - 11:10 | 2684704 Beam Me Up Scotty
Beam Me Up Scotty's picture

The funny part is listening to people talk about how free market capitalism is failing us. ROFLMAO!

Tue, 08/07/2012 - 14:24 | 2685323 Totentänzerlied
Totentänzerlied's picture

Funny indeed. Still funny when you realize they're 100% serious. No longer funny when you realize they outnumber you 100-to-1. Terrifying when you consider the events of the 20th century.

Tue, 08/07/2012 - 10:41 | 2684569 q99x2
q99x2's picture

I agree with insanity. Couldn't hurt at this point. I'm going all long with a gold chaser.

Tue, 08/07/2012 - 10:41 | 2684578 slaughterer
slaughterer's picture

The Rosgengren "ballz to the wallz" rally has begun.  Bears get out of the way.  

Tue, 08/07/2012 - 10:43 | 2684580 LawsofPhysics
LawsofPhysics's picture

The fear is palpable and he stinks of it.  Time for everyone to find out the real value of their labor, fucking bring it.  Atlas continues to shrug.

Tue, 08/07/2012 - 10:42 | 2684583 LongSoupLine
LongSoupLine's picture

"Rosengren"...enough said.


Fuck that asshole.  May he be hit by a runaway Boston metro.

Tue, 08/07/2012 - 10:43 | 2684585 XRAYD
XRAYD's picture

Any notion that the Fed gives a Flying Frying Pan about the economy or job creation is just for the media.

It is all about saving the bond and stock holders of the TBTF banks! And the bonuses of their "managers".

If Obama wins, he will appoint a clone of Ben squared. Ben was a Republican appointee!

Tue, 08/07/2012 - 10:43 | 2684587 HD
HD's picture

"Open ended large QE" is a defacto short ban plain and simple. The Fed can and will come in at anytime for any reason would make them the buyer of last resort on every significant dip.

We all know what happens to markets when they ban shorting...

Tue, 08/07/2012 - 10:51 | 2684622 Haager
Haager's picture

Looks to me like killing an already dead market.

Tue, 08/07/2012 - 10:43 | 2684588 Cheater5
Cheater5's picture

I have one question for these fucking assholes:  WHO IS GOING TO TAKE THE LOSS ON THESE MASSIVE BOND PORTFOLIOS???

If its the taxpayer then you are just moving money from one pocket to another.  Fucking pricks....

Tue, 08/07/2012 - 10:44 | 2684594 LawsofPhysics
LawsofPhysics's picture

Just like playing poker.  If you can't identify the sucker at the table, then it's you.

Tue, 08/07/2012 - 11:06 | 2684683 GetZeeGold
GetZeeGold's picture



Nutz.....you got me. I was totally bluffing.


Tue, 08/07/2012 - 10:43 | 2684589 Jason T
Jason T's picture

I grow my own food, own gold, cut my own hair sometimes, burn wood for heat which I can get from back yard.. man, it's good to be self sufficient with policies such as this are going to be tried.. 


Tue, 08/07/2012 - 10:58 | 2684651 francis_sawyer
francis_sawyer's picture

You grow your own gold???... Awesome!

Tue, 08/07/2012 - 15:20 | 2685538 Papasmurf
Papasmurf's picture

Like money, it grows on trees.

Tue, 08/07/2012 - 10:43 | 2684591 Hedgetard55
Hedgetard55's picture

$10 gas anyone? And a crushed economy. But DOW at 20,000.

Tue, 08/07/2012 - 11:21 | 2684743 bnbdnb
bnbdnb's picture

Gas reaches $5/gallon and the economy stalls completely. Everything will freeze up.

Tue, 08/07/2012 - 10:44 | 2684595 john_connor
john_connor's picture

This feels like late 1999 or early 2000.  eerie. 

Tue, 08/07/2012 - 10:46 | 2684601 Payable on Death
Payable on Death's picture

Sirens going off in the background. Even birds are protesting.

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