With Love From Jackson Hole
Bennie & The Feds: "The financial storm that reached gale force some weeks before our last meeting here in Jackson Hole...
has not yet subsided, and its effects on the broader economy are becoming apparent."
John Lipsky, a top official of the International Monetary Fund: "This turmoil is not going to go away quickly and will require serious efforts to overcome it."
Harvard economist Martin Feldstein, until recently head of the National Bureau of Economic Research: "That's where we are today...
in the middle of a financial crisis, with the economy sliding into recession, with monetary policy at maximum easing, and fiscal transfers impotent."
ECB governing council member Mario Draghi: "More than a year into the most challenging financial crisis of our times...
we now face a complex and interlocking combination of rising inflation, declining growth, tightening credit conditions, and widespread liquidity tensions."
And we save the BEST for last... London School of Economics professor Willem Buiter: "The Fed over-reacted to the slowdown in economic activity.
It cut the official policy rate too fast and too far and risked its reputation for being serious about inflation.
The Fed's reputation for maintaining price stability has been severely dented.
The official policy rate is a rather ineffective tool for addressing liquidity and solvency issues.
(Re: The Fed, ECB & BOE)... All three have allowed themselves to be used as quasi-fiscal agents of the state,
providing subsidies to banks and other highly leveraged institutions.
The Nattering One muses... As we have nattered ad nauseum... this is NOT a liquidity crisis, it is a SOLVENCY problem.
The Fed's decision to cut interest rates in response to the U.S. financial market crisis is a horrible mistake that can only lead to higher inflation.
But, the Fed already knew that, didn't they? An even scarier thought, rather than a conspiracy to foster inflation... what if they didn't know?
That would clearly imply that the Fed & central bank cheifs are truly clueless imbeciles. And if they are, what pack of political imbeciles appointed them?
Perhaps another pack of duly elected imbeciles, who were voted in by a pack of public imbeciles. Apropo, don't you think?
Now, take your pick, conspiracy of genius or packs of imbeciles, and please be like the other patients and take your medicine, Mr. McMurphy
has not yet subsided, and its effects on the broader economy are becoming apparent."
John Lipsky, a top official of the International Monetary Fund: "This turmoil is not going to go away quickly and will require serious efforts to overcome it."
Harvard economist Martin Feldstein, until recently head of the National Bureau of Economic Research: "That's where we are today...
in the middle of a financial crisis, with the economy sliding into recession, with monetary policy at maximum easing, and fiscal transfers impotent."
ECB governing council member Mario Draghi: "More than a year into the most challenging financial crisis of our times...
we now face a complex and interlocking combination of rising inflation, declining growth, tightening credit conditions, and widespread liquidity tensions."
And we save the BEST for last... London School of Economics professor Willem Buiter: "The Fed over-reacted to the slowdown in economic activity.
It cut the official policy rate too fast and too far and risked its reputation for being serious about inflation.
The Fed's reputation for maintaining price stability has been severely dented.
The official policy rate is a rather ineffective tool for addressing liquidity and solvency issues.
(Re: The Fed, ECB & BOE)... All three have allowed themselves to be used as quasi-fiscal agents of the state,
providing subsidies to banks and other highly leveraged institutions.
The Nattering One muses... As we have nattered ad nauseum... this is NOT a liquidity crisis, it is a SOLVENCY problem.
The Fed's decision to cut interest rates in response to the U.S. financial market crisis is a horrible mistake that can only lead to higher inflation.
But, the Fed already knew that, didn't they? An even scarier thought, rather than a conspiracy to foster inflation... what if they didn't know?
That would clearly imply that the Fed & central bank cheifs are truly clueless imbeciles. And if they are, what pack of political imbeciles appointed them?
Perhaps another pack of duly elected imbeciles, who were voted in by a pack of public imbeciles. Apropo, don't you think?
Now, take your pick, conspiracy of genius or packs of imbeciles, and please be like the other patients and take your medicine, Mr. McMurphy
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