Some people say that the Fed is the problem. That they’ve become drunk with their own power and are messing things up for everyone. That the stimulus and low interest rates are setting us up for Armageddon.
Ray Dalio is not one of those people. He’s put the Fed’s efforts through a rigorous, Principle-d examination, and come to the obvious, radically true conclusion: Janet Yellen & co. are doing just fine. Read more »
You can call James Bullard a naïve optimist. Go ahead, do it. You’d almost certainly be right, but he doesn’t care. He knows that everything’s going to work out perfectly, and that means that the people who actually get a say on these things—and who are saying he’s crazy—will come around and say, “Hey, that James Bullard really is a great guy. And all of the improbably wonderful things he said would happen did happen. Let’s give him the recognition he deserves with an interest-rate hike for Christmas.” Read more »
Following his brief flirtation with sticking by QE3, which he previously called the “ruination of our economy and lifestyle,” the Dallas Fed president is back to wanting to see it sprinting into the sunset as soon as possible, which apparently means October. Read more »
Standing at the podium at Yankee Stadium for NYU’s commencement Wednesday, Janet Yellen was inspired. Not by the 27 championships and history of greatness and fantastic, unceasing ability to print money, which is, by right, her job. Instead, the first woman to head a major central bank looked at the 66% of the time Babe Ruth and Lou Gehrig didn’t get a hit, to ignominious choke-jobs in decade-old playoff series, perhaps even to the travails on Steve Cohen’s new drinking buddy, dug deep, and told the 22 year-olds to get ready for failure. Read more »
Hardly news, yes. And hardly surprising that one of the things he didn’t know was what a TED spread is. But he overcame his natural hostility to those who do know such things, and elevated a genial, bearded, middle-aged man named Ben Bernanke to help.