moneymcbags'  Instablog

Money McBags was in a good mood this morning when he learned that a woman named Cynthia Cooper-Dyke is being inducted in to the Basketball Hall of Fame (no doubt for her love of boxing out, her ability to play such solid defense that she would literally be "in the shirt" of her opponent, and her intense on court demeanor where she was known for liberally giving tongue lashings to those who got in he way), but that changed when the market began to sink as a result of mediocre macro news and Bennie B.'s henchman, Thomas "T Ho" Hoenig getting all inflationary on the market and saying rates need to rise.

Now look, Money McBags is no economist, mainly because he does not suck at his job (though his undergraduate degree is in Economics, so buyer beware), but one day it's inflation and the next day it's deflation so for fucksake can't we all just come to some kind of agreement here (other than that Leticia Cline is hot)?  There is so much uncertainty that it would even rankle Werner Heisenberg and perhaps the only way to figure out what is going on is to exhume John von Neumann and have him go all Monte Carlo on the economy and game theory shit out.

Anyway, T Ho said:

"We need to get off of the emergency rate of zero, move rates up slowly and deliberately," and followed that up by saying "if we don't move rates all up in this bitch, we're gunna just have mo' shit to deal wit later and let me ax you this, you want more shit to deal wit?  Economist please." And he finally added: “For a while longer, it should remain even below the long-run equilibrium rate. However, the economy is improving and is growing at a rate faster than the last two recoveries.” And perhaps only 2 of those quotes are from him, but whatever.

As Money McBags understands it, the gist behind T Ho's rate envy is that he thinks the economy has moderately recovered, though he must be looking at different macro data from what Money McBags sees every day, or perhaps his glass is just half full (with Courvoisier no doubt).  He believes the economy will continue to moderately recover by itself so the need to gently stroke its taint by keeping interest rates at zero is unwarranted and may just cause another bubble to rise while leaving the Fed very little wiggle room to affect the economy in the future (which may not be a bad thing).  Money McBags loves that T Ho is a loose cannon but hopes he knows about what the fuck he is loose cannoning.