Tuesday, July 12, 2011

When in a Hole, Stop Digging

The minutes for the June FOMC meeting were released today. Key to us is that some of the membership expressed reservations about the "...efficacy of monetary policy in certain circumstances," meaning we think that a few have come to the conclusion we reached months ago - QE II was a waste.

When in a liquidity trap, quit providing liquidity. When in a hole, stop digging.

Any farmer knows that, but it was apparently lost on those who occupy The Temple.


Robert Craven

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