The "Greatest" Monetary Policy Experiment in History

It is not really part of my theme today, but you should hear this guy (David Zervos) call [ at t=3:30 remaining ] the Federal Reserve's response to the financial crisis of 2008 » "the greatest monetary policy experiment in history."

James Joyce (1882-1941)Dont get me wrong .. he is not saying it in a bad way, or in a critical way. No, sir.

Rather he is like » "More champagne! Way to go, Federal Reserve!"

I only cite his quote because it seems to support my notion of the Federal Reserve wax'ing avant-garde ..

.. like James Joyce and avant-garde artists blazing new trails out there on the bleeding edge ..

.. making it up as they go.

Avant-garde-ists are known for boldly going where no artist has gone before.

This guy [ David Zervos ] plays with real money. [ "Or does he?" I can hear Bethany saying. ] By that I mean » he is not (merely) a theorist.

But I can see now [ thanks to Bethany ] that he is not playing with real money. Nonetheless, you can bet your ass that he believes that money is real.

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These accounting constructs that he plays with .. seem to have some value assigned to them. Some disputable, illusory value.

The end. ■

» Monetary Policy Can Become Destabilizing

Update June 3, 2015 » On the subject of the greatest monetary policy experiment in history ..

.. in this interview (6 mins) with former FDIC chairperson Sheila Bair, you can hear her say [ at t=5:50 remaining ] »

"Monetary policy, if it's too accommodative for a very long period of time, can be destabilizing. We saw that leading up to the subprime crisis. I fear that we're seeing it again. And so the risk may actually be greater once the market turns. Is the system resilient enough? I dont know. I dont think it is."

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This page contains a single entry by Rad published on April 30, 2014 4:30 AM.

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