Seeking Alpha

"Everyone is confused," writes Josh Brown about Fed policy, "I saw Hilsenrath walking out of a...

"Everyone is confused," writes Josh Brown about Fed policy, "I saw Hilsenrath walking out of a Starbucks in Northwest (D.C.) with two different shoes the other day." Brown thinks this new transparency is a mistake because it makes crystal clear the Fed itself has little clue as it just moves from data point to data point.
Comments (18)
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Spot on.
    25 Apr 2012, 03:49 PM Reply Like
  • montanamark
    , contributor
    Comments (1434) | Send Message
     
    What is crystal clear to anyone awake is fragility of the US economy.
    We have an unelected private banker declaring in public that he controls and manipulates the market - if it falls he will "step in"
    Why look at fundamental in such a climate? It s a state owned market
    Look at all the double speak - we have been hearing ben tout the
    "recovery" for 3 yrs - where is it? He proclaims things fine in one breath and in the next speaks of QE and more intervention.
    25 Apr 2012, 03:53 PM Reply Like
  • Losing Paper While Gaining ...
    , contributor
    Comments (497) | Send Message
     
    It took until now for him to realise the fed has no clue?

     

    Oh well, this is the point of transparency I suppose.

     

    When can we tear down the Naked Emperor's castle and get rid of the Fed?
    25 Apr 2012, 03:54 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    "...this new transparency makes it crystal clear that the Fed has no clue and needs to be audited and also shows why the current chairman needs to be removed immediately."

     

    There. Fixed it for you.
    25 Apr 2012, 03:58 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    The Fed itself has little clue........Exactly...... they do have the presses and the politicians....
    25 Apr 2012, 03:58 PM Reply Like
  • torahislife
    , contributor
    Comments (400) | Send Message
     
    Consumption based economy that borrows to consume more will consume itself. Thought feeding the monster would make it behave. Idiots.
    25 Apr 2012, 03:59 PM Reply Like
  • The Sane Investor
    , contributor
    Comments (357) | Send Message
     
    Of course they move from data point to data point. That's what markets do, so why should the Fed be any different? It's not like Bernanke has some crystal ball that only the Fed can see.
    25 Apr 2012, 04:00 PM Reply Like
  • WMARKW
    , contributor
    Comments (10250) | Send Message
     
    Having no clue....

     

    What's the saying about the "emperor" and "clothes".

     

    Wasn't there a movie made some time ago called "The Wizard of Oz?'"

     

    Can we just conclude that the Fed has no ability to make the economy work - but they do have the ability to disrupt it ?
    25 Apr 2012, 04:05 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    The sad part is history will look back on Bernanke and group him appropriately with Arthur Burns, former Federal Reserve President.

     

    The parallels are scary.
    25 Apr 2012, 04:25 PM Reply Like
  • Hendershott
    , contributor
    Comments (1498) | Send Message
     
    What's the confusion? The Fed and Bernanke have been clear and consistent. What part of ZIRP is confusing? If the economy weakens considerably then it's more QE. I think we have a lot of confused posters on SA, still clinging to theories about economics and inflation that demonstrably don't work. And no, we can't get rid of the Fed or any other central bank. The Fed, other central banks and all the various economists; none can accurately predict the economic future, including the SA posters and various politicians. All the aforementioned will react to data. Would it be better if everyone just acted on their pet theories and ignored the data?
    25 Apr 2012, 04:53 PM Reply Like
  • WMARKW
    , contributor
    Comments (10250) | Send Message
     
    Well that works, if you believe the QE has a positive effect on the economy that is any more than shortlived and perhaps immeasurable.

     

    We may not be able to get rid of the Fed, but we can reduce the scope of their activities to bank regulation and eliminate the "dual" mandates of price stability and full employment, which they have certainly demonstrated no capacity to mange for 100 years.
    25 Apr 2012, 05:12 PM Reply Like
  • Hendershott
    , contributor
    Comments (1498) | Send Message
     
    Well, I am in the finance industry and I'll tell you that we need to be regulated, otherwise we'll just push what makes us the most money, and keep pushing until it blows up, with no regard for anyone or anything else. As far as the effectiveness of the Fed, you clearly disagree, but historically it has been quite effective in the original mandate of controlling inflation and in newer responsibilities like maintaining the stability of the financial system.
    25 Apr 2012, 06:25 PM Reply Like
  • Losing Paper While Gaining ...
    , contributor
    Comments (497) | Send Message
     
    Of course you want regulation.

     

    This is more of a failure of the same people who you want to regulate you. They've created a system so leveraged, right down to a core of fractional reserve banking, that it's a house of cards waiting for a small wind to knock the entire thing down.

     

    That's before we ignore that this "regulation" benefits the financial industry. The federal reserve isn't there to regulate, but to save banks from their own screwups through a veneer of regulation. How many bailouts will it take before people remember who it is the federal reserve protects first?

     

    Let players in the financial industry fail and eventually, like the rest of the economy, they'll learn that taking stupid risks = bankruptcy.
    25 Apr 2012, 07:18 PM Reply Like
  • Hendershott
    , contributor
    Comments (1498) | Send Message
     
    The leverage isn't a creation of the various regulatory agencies in various countries. Leverage is just way of maximizing profits. The leverage was taken on by the financial companies on their own, No encouragement needed. These companies aren't run for the long term and it's doubtful if most managements even understand the long term implications of their actions. Certainly Dick Fuld showed a remarkable lack of comprehension of Lehman's complexity and implications. It's the the bonuses, the stock options, shareholder returns (for the next few quarters anyway), it's all that MONEY. Which is why the firms rant about regulation and have convinced some of the public to go along. Regulation interferes with all that money. The financial system is a lot more stable if the participants don't go bust, taking the shareholders, bondholders, depositors and other stakeholders down with them. Self regulation by bankruptcy works but there are better ways.
    25 Apr 2012, 07:56 PM Reply Like
  • User 462216
    , contributor
    Comments (95) | Send Message
     
    Hendershott,
    Better ways.....like what ?
    25 Apr 2012, 08:05 PM Reply Like
  • Hendershott
    , contributor
    Comments (1498) | Send Message
     
    Nasty word. regulations. Limits on leverage. Clearing mechanisms for swaps, and all the things bankers hate. Fiduciary responsibilities for products (Goldman). Limits on fees. Margin requirements for derivatives.
    25 Apr 2012, 08:12 PM Reply Like
  • User 462216
    , contributor
    Comments (95) | Send Message
     
    I gave you a like on that one. There is always more than one way to skin a cat. The problem is always that people figure out a way to beat the system. But if the punishment is greater than the reward it makes things more plausible.
    25 Apr 2012, 08:22 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Regulation is good if it does not inhibit capital formation.

     

    Unfortunately every bit of regulation to come down the pipe ignores this principle.
    25 Apr 2012, 09:23 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|