The talk is that Bernanke is "behind the curve"...
And this from the very same people who were touting a "one and done" scenario...only a few weeks ago.
Perhaps, this FED policy of coddling Wall Street...with these absurd "baby steps" interest rate hikes is the real cause of our problems...
IF THE FED HAD GONE 50 BP AT ANY ONE OF THE FED MEETINGS...
WE WOULDN'T BE IN THIS MESS TODAY....
The notion that the FED exists to please the financial markets...and should never cause "trouble" for stock traders is the root of all the trouble.
Worse, this idea of the FED as handmaiden to the stock brokers is totally without historical precedent...
Quite the contrary was the case up until the 1990's BUBBLEMANIAS of Mr Greenspan.
Greenspan lowered rates to outrageously low levels after the Tech Crash...to try to revive the Bubble...but it didn't work...all he revived was monetary inflation...
True, it wasn't his old bugaboo "wage inflation."
But as Gertrude Stein might say: Inflation is Inflation is Inflation....
SO, BERNANKE IS NOT BEHIND THE CURVE...RATHER HE INHERITED THE GREENSPAN HYPERLIQUIDITY MESS...
AND HE IS ONLY NOW STARTING TO REALIZE THAT HIS JOB DESCRIPTION...WILL NOT BE ONE OF KOW-TOWING TO WALL STREET...AND FOREVER BLOWING BUBBLES IN PAPER ASSETS...LIKE MR G DID.
TODAY WAS A WAKE UP CALL FOR BERNANKE...
HE IS GOING TO BE THE NEXT VOLKER AT THE FED....AND NOT GREENSPAN LITE.
