Nov

16

One would believe that the Fed's credibility is on the line and that they might pull out all the stops to save it, and Omid's cartoon and the vitriol towards them transmitted by the interested economists, and those who would seem doomsday is not isolated.

Tim Melvin adds:

My question for the Fed is simply "If 1.7 trillion did not work, what makes you think $600 billion will?"

Victor Niederhoffer replies:

Regardless of that, they have many interested flexions who would come to the rescue around the world, not the least of whom has been mentioned by the polymathic trend follower in the context of a shout out to the academic work of the all too human friend of Summers who couldn't resist picking the pockets of the Russians.

George Zachar agrees:

There is no doubt the flexers will circle their wagons ever-tighter, and draw upon their considerable resources.

The one thing they never anticipated, anywhere in their writings or chatter, was a popular revolt by the reserve currency's masses. They have no tools other than soothing "trust us" propaganda to fight back, and it's far too late in the game for that to be effective.

Vince Fulco asks why the volte face:

One of the things I have trouble reconciling is the about face Bernanke did during the summer. At one point, he seemed quite firm in his expressed opinion that the Fed had done all it could do and it was the turn of the legislative branch do the heavy lifting. For once in recent memory, it looked like a Fed head would not be rolled by the Pols. Something or someone turned his policy course abruptly and demolished any chance of holding the fiscal deciders feet to the fire. Surely the unemployment forecasts were well known through the balance of the year. Maybe a quid pro quo for pushing thru his confirmation? If only I had listened to the well connected Larry Lindsey in the middle of the summer when he telegraphed QE2 at YE and stepping on the accelerator as the best course of action. I could be sailing the islands for the holidays. Suffice it to say, I remain doubtful of all this new found budget conservatism being bandied about.

Rocky Humbert feigns puzzlement:

It's a strange day when the United Nations General Assembly and the Chair are bedfellows. If the Russians and Chinese and Europeans are upset about QE, and are lecturing the Fed on the appropriate way to do its job, a kneejerk reaction might be to conclude that the Fed has stumbled upon something good — imagine if OPEC were to complain about the environmental hazards of natural gas fracking …

Vic reemphasizes his main point:

The battle is joined, and it will work itself outself not in the fullness of time, but in just a speculative minute.


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