Earlier today, Fed "bad cop" Dick Fisher appeared on TV and warned Wall Street to resume doing fundamental analysis on its investments as incremental easing is now over, and expectations of shotgun monetary heroin should be henceforth curbed. While we sympathize with the views of the holder of precious metal ETFs, we can't help but be skeptical that if and when global growth returns to its negative glideslope trendline, the only option, as always, will be more real dilution, resulting in more nominal asset price gains. Furthermore, in the aftermath of Fisher's warning, Wall Street sat down and redid its analysis. What it found was that no matter what happens, the Fed, and its central banking peers, will always ease. Case in point is the just released update from Morgan Stanley on what it believes the monetary firehose will look like in the next 2 years. One word: whoooosh.
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