Wednesday, August 11, 2010
Morning note from 'J'
Overnight volume was modestly better and prices traded in a $10 range. Open interest for Monday was unchanged at ~520,000 and the GSR is currently unchanged at ~65.90. This morning I went to the FED's website and meticulously read the bio's of all the FOMC members. 12 of them are essentially career academics or public administrators and the 3 that have worked in the private sector Warsh (~7 years in M&A at MS), Dudley (~20 years at GS, mostly as an economist), and Fisher (~10 years running his own asset management firm) clearly did not spend time a lot of time stoking the furnaces of finance. So take a visual of this peanut gallery having a discussion yesterday at the FED and in the words of our only President who served a 5-year term due to his perpetually scheming thinking (HT Google) "Any change is resisted because bureaucrats have a vested interest in the chaos in which they exist." Bottom line: Yesterday's announcement was another round of smoke and mirrors delivered by this august body to perpetuate that as many people as possible perceive them as credible. So, Today: meeting over and maybe this time [they] cannot keep the lid on gold.