I have to reproduce here these interesting thoughts about the FED doing nothing to prevent the next economic crash:
"The danger I see in here is that Mr. Powell is running a 'desperate game'. And that game is that of trying to say nothing that can be construed as a game-changing 'financial signal' to the markets; and still say something to the effect of sounding serious to all those who came to hear you speak.
In short, his agenda is how to sound profound without being liable to be thought of as to have done something consequential along the way.
This is a tricky hand to pull off.
And there lies the same eventual pitfalls, the same 'clever-by-half phrase-making' that had done in Mr. Alan Greenspan when he was found out eventually not to have noticed, intellectually, that incoming great crackup of the financial crisis of (2007/2008) had actually started under his watch in early 2000s and in the bubble creation of US housing market, in which he was the prime mover of it due to his easy monetary policies. Which means his management of the Fed at that time of from early 1990s till early 2000s can directly and easily be 'attributable causes' to that eventual exceptional balls-up situation that was the great financial crisis (GFC) of 2007/08.
Moreover, if we remember now, Mr. Greenspan was master of saying something sounding so profound, like 'irrational exuberance' or words to that effect to the US's sub-congressional committees, without actually trying do anything about them.
Or really doing anything to which to curtailed, meaningfully, about it's deleterious effects on the US's housing market bubble. And about doing something to arrest the rest of that ongoing irrationality from the market. And that eventually came close in destroying the whole system when the whole thing came unstuck during the Ben Bernanke's time at the Fed in 2007/08.
Hence this studied timidity on the part of Mr. Powell, this search of clever-by-half way to punt away from any forward position to take in terms of guiding the market to stable and down to earth territory, this nervous streak of trying to look both sides of the issue without saying clearly what one is in favor of, this unconvincing equivocation, is really what will end Mr. Powell's tenure in the Fed with a 'dark cloud'. As much we now look back on Mr. Greenspan era as to be the precise time when the rot in the system had get going.
I hope I am wrong in here. But, I have a feeling this 'barefaced delaying-tactics' on his part in which he is playing in here just to avoid a 'clarity of a daylight' to emerge in terms of where his thinking is geared towards it, is what eventually will be understood it by all to be the 'real culprit' that had ended this 'saga of equity bubble', in which he is encouraging now with his clever-by-half games. Given that his agenda of being all things to all men, and the stances and positions of that sorts in which he is taking on now, is actually contributing this forming uncertainty.
We shall see."
Member
