Some joked that the Chicago Fed's Twitter account must have been hacked buyt it turns out that is not entirely true. Following Esther George's "renegade" comments last night, Austan Goolsbee was unleashed by Fed's Evans to lay down some ugly truthiness in 140-character-world. The results - in these 2 tweets - say everything about the level of excessive optimism that remains in our new normal world...
It's crazy pills time...
Here is Esther Georrge's inconvenient truths from alst night's speech:
- *GEORGE SEES EXCESSIVE RISK TAKING IN LEVERAGED LENDING MARKET
- *GEORGE SAYS SHE HOPES FOR A `DIVERSE' FED BOARD OF GOVERNORS
- *GEORGE SAYS LABOR PARTICIPATION RATE LIKELY TO FALL FURTHER
And here from Goolsbee via The Chicago Fed:
First this...
The Case-Schiller Index was up 10.5% for housing, which might tempt us to go back to the standard model--housing will lead us out of this.
— ChicagoFed (@ChicagoFed) September 27, 2013 [7]
and then the slam-down...
We only need to reflate housing 75% to do this.
— ChicagoFed (@ChicagoFed) September 27, 2013 [8]
So there's still a chance?