Let's Risk 'Politicization' and Audit the Fed
While were at it, fine Bernanke every time he says they're trying to "ensure a strong dollar".
Greetings from New York, where wonks such as me are all slathered up over Rep. Ron Paul's proposal that the government be allowed to perform detailed audits of the Federal Reserve.
As I see it, the risk of an audit is politicizing an institution intentionally designed to minimize the impact of the political mood of the day.
As I see it metaphorically, concerns that the Federal Reserve be susceptible to politicizing is akin to being concerned that Sid Vicious's self-abuse and heroin addiction could shorten his life.
Sid's dead, as is the credibility of the statement, "The Fed is in every way removed from political influence."
I've got Ron Paul's back on this one in a big way. Audit 'em in a way that makes the Federal Reserve envious of the relatively muted scrutiny of Bernie Madoff. While we're at it, fine Ben Bernanke personally every time he assures us the Federal Reserve is seeking to "ensure a strong dollar".
1. No, the Federal Reserve isn't defending the dollar in any non-verbal manner.
2. Bernanke echoing our Cabinet Member Treasury of the Secretary about maintaining a "strong dollar" does nothing demonstrable except assure that an ever-sliding currency brings us right back to the credibility gap.
3. Taxpayers obviously deserve an accounting of where are money is being thrown away; particularly the "rich" who are going to bear the brunt of the tax increase (presumably as the cost has never been detailed).
Here's what I'm mulling when not howling in the general direction of Washington, D.C.:
- All Hail the Purple Crayon! The generic-branded wand of wisdom got me long the GLD ETF on the break over 100. For what it's worth, the Crayon says to trim some longs now but stay long the bulk of the position unless, and until, GLD retreats below $110. No pride, just trading.
- Speaking of which, I took some guff for thinking S&P 1,110 would be resistance. I may be right or wrong (my goal is only being the former slightly more than the latter), but the market weakening throughout the day will be mildly concerning if we close below 1,110. A close below 1,100 entirely would be a potentially positive day and a day which screamed "SELL".
- New York Times (NYT) is one of the day's biggest winners. As my father used to say, "Even the mangiest dog has the sun shine on its arse if you wait long enough; doesn't mean you want to take it home with you". (NB: He didn't actually say "arse" and "mangiest" was often substituted in favor of a more vulgar term. Still, NYT getting back to $9 doesn't make it a buy).
- Speaking of stocks to be considered for taking home and my dad, Target (TGT) has been smacked down about 5% since announcing it was "cautious" on the fourth quarter. From where I'm sitting, Target is going to do better than even it thinks. The stores are lean, clean, and working like a well-oiled retail machine. I'll be looking to buy the dip this week.
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