Bernanke sucks even worse than I thought
Last Wednesday, I gave my call for monetary policy in the US and Eurozone
The Fed SHOULD hold rates, but I’ve lost all faith in the fed and they are just puppets for Wall Street.
ECB holds at 4%
Fed drops to 4%
So I was a bit shocked when the Fed only dropped rates 25 bps. I would have preferred 0 bps, but if you’re going to cut, cut enough to make some impact. A cut of 50 bps makes more sense the 25 bps even though if they had brains it would have been 0 bps, i.e. either do something or not. Don’t be a wet noodle.
So Bernanke doesn’t want to be Greenspan, eh? That much is clear. He is trying every tool in the chest other than lowering the Fed rate, but how on earth is this global bank bailout going to do anything other than bailout some new found buddies on Wall Street?
You should not really be surprised. After all, they are just as human as you and I. I’m probably better educated than most in the Fed anyway (as scary as that may sound).
Here is my advice to Helicopter Ben. The sooner you realize that some on Wall Street deserve to be insolvent, the better. Hold rates where they are (or even raise rates). Trashing the dollar isn’t really in anyone’s interest. Let the inevitable recession come over us. We’ll live. Trust me. We’ll even come out on the other side stronger. Leaner. Meaner. Greener.
The 0% APR on
Al Wojnilower’s American Express Card is about to expire and we’re likely not going to be able to roll over into a new one. But that’s alright. This country is still full of smart innovative people. Even if/when Citigroup defaults on its first interest payment, we’ll get through this. In every Econ 101 book I’ve ever glanced at (and tossed back on the shelf in fright), you see the words “business cycle”. It is natural. Recession are natural. Embrace it. Don’t let complacency take us beyond the point of no return. Make us work for a living. Don’t let us expect to be able to hold a job if we’re not giving 110% of our effort to be cost effective employees. We’re in a global competition with some super smart, super aggressive entrepreneurs and innovators in China and India, yet we’re feeding our lazy kids into diabetic obesity. This competition cannot be won through politics or military strength, it has got to be won through hard work, creativity, and dedication.
Ok. Why did I go off on that rant again? 🙂