Do you think FED is doing evertyhing it needs to do in the current conditions?

CFA General
#1

Just curious to hear your take on FED actions and whether their impact is enough in markets like this one…

#2

The Fed is doing lots of unpredictable things and is clearly not pursuing inflation as its priority in the way Bernanke said it would when he assumed the role. Now, I’m not saying that I think recession should not be the priority or inflation should be right now, but I do think that the unpredictability of the Fed is bad for financial markets.

#3

The Fed is crazy and of no particular help. I haven’t seen a more incompetent Fed since the mid-70’s.

#4

Helping tie up JPM and BSC is probably a good thing long-term, as they didn’t exactly cause BSC to be “bailed-out”, $2 a share isn’t exactly a bail out. The biggest losers without this would be the counterparties to BSC’s trades and anyone with assets at BSC. Cutting rates by 75 or 100 bps tommorow, that is wreckless…

#5

What happens when zero is not enough Ben?

#6

Desperate times call for desperate measures, I suppose. I’m just glad I’m not in Ben’s seat (not like I have a chance of ever being there, either).

#7

JoeyDVivre Wrote: ------------------------------------------------------- > The Fed is crazy and of no particular help. I > haven’t seen a more incompetent Fed since the > mid-70’s. Joey: But this market is not of Bernake’s making. But both Fed’s and Treasury’s statement about the state of economy has been behind the curve. Treasury I can understand, given that its a government branch and the President himself is so out of touch with the economic reality that its not even funny. What about the Mr. Greenspan, who is blaming inadequant risk models? http://www.ft.com/cms/s/0/edbdbcf6-f360-11dc-b6bc-0000779fd2ac.html. I especially like this line"One difficult problem is that much of the dubious financial-market behaviour that chronically emerges during the expansion phase is the result not of ignorance of badly underpriced risk, but of the concern that unless firms participate in a current euphoria, they will irretrievably lose market share." In Greenspeak, he is probably referring to the making of a bubble. If so, what he has to say about replacing one bubble (dotcom) with another bubble (housing)? I also want to know what the proponents of self-regulation & free markets – The White House, Treasury - have to say about the bailout of Bear Stearns.

#8

Is the point is that Greenspan and company created this problem so I should revise my opinion about the most incompetent Fed? I don’t agree with that opinion now, but it’s one of those opinions I can see myself coming to believe. I certainly think that Greenspan and company created a mess with their mega-easy money policies around 2003.

#9

JD: What would you like the Fed to do or should have done? Are you suggesting they should focus on inflation & not be swayed by the markets?