Monday, January 30, 2012

quick thought on fed

the new fed policy of increased transparency is irrelevant or perhaps
worse. By proclaiming that rates are on hold for 3 years they end up
creating a sense of complacency within the market. As we have seen in
the past, when too much complacency permeates the market it usually
ends abruptly and dramatically. The mistake the market makes, is that
it takes the fed at their word and doesnt factor in  the feds
inability to accurately predict market shifts.This is not an
indictment of the fed as market shifts have proven impossible,for
anyone, to consistently predict with precision

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