In a move to stave off potential impediments to recovery The Fed last week moved to continue lending at an all time low. Bernanke in his high-handedness and roll as senior jackass gave a rousing speech outlining the fact that The Fed will do what he says until he deems that as silly as it sounds. While the average American still feels the dry mouth of someone going to a dry well, the lending industry, a voice of reason has chimed in on the subject.
“You are inviting future problems”, Federal Reserve Bank of Kansas City´s President stated, and, “inviting future excesses,” continued Thomas Hoenig. The average American is keen to higher rates, money for nothing, while a great Dire Straits song, is something no longer warranted or trusted.
With most economists agreeing that The Fed will keep rates low, or ridiculously fucking unsustainable low as they are at present, Hoenig has been the voice of reason. The real road to recovery is consumer based, not a false return to inflated stock prices brought on by business investment demanded by low rates. Most can´t get a loan despite a rate lower than a Jew´s view on foreskin, or a Muslim´s respect for women´s rights; the Fed needs to wake up and raise rates before inflation rears its waiting head.
“I think the market will step in, it should. I don’t think [the Fed] should be the largest or only buyer of mortgage-backed securities at all.” My god, where has this man been? These comments came in response to questions over the overhaul of Fed policies in the end of March.
It is difficult to trust the pampered US economy to recover when built on a mountain of fallacy; it is delightful to hear the occasional voice of reason from a group headed by a egotistical dunderhead.