MarketWatch Chief Economist, Irwin Kellner, sets out to pacify any concerns about Fed tapering:
For one thing, thanks to Fed Chairman Bernanke’s hint back in May, the markets have already discounted taper’s arrival. For another, such a move is small in the great scheme of things...Has it been "extremely easy"?
...measured against historic norms, monetary policy has been and will continue to be extremely easy. As our trucker friends would say, policy is pedal to the metal.
EPJ Daily Alert readers will have a different answer about the pace of money creation in recent months, where that money is going, and its effects on the capital structure. Readers also get a nice rundown of possible "spook factors" that can act as a catalyst for the next downturn. After all, you don't think the Fed will take the blame from the media, do you?
Kellner ends up by telling Wall Street:
Better they should remember that the only thing they have to fear is fear itself.Keynesians, who have no monetary theory, constantly end up like our dear cartoon friend:
Sadly, they always end up taking much of the unsuspecting public with them.
Subscribe to The EPJ Daily Alert to help better understand today's economic events through an Austrian Business Cycle Theory lens. As an added bonus, you'll get to watch the Keynesians take their lumps once again.
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They were completely shocked and did not see the crash coming, especially krugman and his followers.
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