Don't you think it's funny that these guys suddenly decide to have a closed door meeting just as the long bonds threaten to inject sanity into their policies? Jesus, this is pathetic. Does anybody actually have any faith left in the egg head chief of the Fed? Great, he inflated away my childrens' future and yours. What a hero. Doofus is more like it.I can just hear Fisher, Plosser and Hoenig now, trying to get through to the academic genius.
Here is an excerpt once again from WAY back at the March 16th FOMC meeting. A question might be, what the hell changed? Oh yes, the long bond has triggered the line in the sand.
"The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period."
In other words, please keep speculating... pretty please?
Well, the treasury market is being taken down by asset speculation and a nice fat moral hazard has been built in. We are in Wonderland where anything is possible.
