An astute patron who shall only be identified as il greco asked a particularly interesting question at the tail end of a long email today.
Here is my answer.
I do not believe that the Fed has 'given up' on the real economy.They see reality through the prism of the banking system and their circle of friends and associates, mostly laboring in the 'unreal world' of the academy, government, and the Banks.They tend to diminish their own culpability and shift the problems they are creating to the 'fiscal side' of the house, the dysfunctional government. They do have a point, but they are mostly moral cowards and courtiers to power and privilege, rationalizing their own servility.
Things are going to be getting rougher before they get better.
There is no recovery.
There has been no genuine reform.
There is another asset bubble.
The careless few are doing very well, and do not care.
Have a pleasant weekend.
