Wednesday, December 12, 2007

The Fed's flip flop!

What a hoot! Brian Wesbury, of First Trust Advisors, always gets a lot of air time for CNBC. Yesterday, he was asked what was an appropriate target for the fed funds rate. He said 6%!
Remember that when he gives his economic viewpoints and mute him.

The best part of the after-the-fact posturing by the Fed, is that financials markets are able to have some transparency on the Fed! Remember the transparency the market gave the $100 billion super SIV? After the light was shined on it, this Super SIV is now down to $30 billion.

It's the same with this Fed. Give them some transparency and then just listen to 30% of what they say!

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