Saturday, August 6, 2011

FT Headline: "Bruised Investors Cherish QE3 hopes."

The process of price discovery is too complex to isolate "a cause" (even though the financial press pretends). One might say more accurately, "of the several causes..." And certainly one of the several causes of the recent tanking of equities was the collapse of foam, souffle style, created by Fed antics.

So some equity types may pray for more Fed slosh money, but it’s phony activity and it hurts the rest of us. Since we have no need of liquidity, most washes offshore, creating havoc in its wake.

Do as we instructed Obama to do Bernanke - sit on your hands.
 
Robert Craven

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