Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyan Mailbag: The Fed's Ideology


In the meantime the music continues and no one knows when it will stop.


Prof Succo-

Thanks for your last post; it serves to remind me of the manipulation going on. One example: Prof Sedacca's vibe yesterday concerning the fact that "magically" the 10-year yield should rise in tune with a 25 bp FOMC nudge.

The problem to me seems that yes the Fed and every other central banker can pump out debt BUT as we have already seen, the public, the consumer cannot take on more. Governments and other institutions cannot force more debt on a consumer that is already being squeezed to the hilt, perhaps more credit contraction, weak retail and housing numbers will be the only thing to wake people up to the fact that "things ain't good"...the consumer is obligated to pay their debts, Governments and other "institutions" do least not yet(?).

Minyan Steve


I just had a "discussion" with Scott about Fed ideology.

It is highly improbable to me that the Fed genuinely believes that there is "excess savings" in the world, that they do not see anything wrong or untenable about "printing money and building debt." I feel that they know that the game must end at some point, but through hubris can put off and manage that end.

Scott believes that central banks actually believe that there is nothing wrong with their policy and that they think printing money is a viable strategy.

We both come out the same, vehemently against their hubris however it is founded. Debasing currency has a cumulative effect: adding debt and adding over-capacity, which is the problem they are trying to correct. It is like giving cocaine to a cocaine addict to make him feel better.

In the meantime the music continues and no one knows when it will stop.


< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos