"Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton [Friedman] and Anna [Schwarz]: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."
Ben S. Bernanke, On Milton Friedman's Ninetieth Birthday, November 8, 2002
"I write to you from a disgraced profession. Economic theory, as widely taught since the 1980s, failed miserably to understand the forces behind the financial crisis. Concepts including rational expectations, market discipline, and the efficient markets hypothesis led economists to argue that speculation would stabilize prices, that sellers would act to protect their reputations, that caveat emptor could be relied on, and that widespread fraud therefore could not occur. Not all economists believed this, but most did."
James K. Galbraith
“It is difficult to get a man to understand something, when his salary depends on his not understanding [or even seeing] it.”
Upton Sinclair
"Nothing is so unworthy of a civilized nation as allowing itself to be governed without opposition by an irresponsible clique that has yielded to base instinct."
Sophie Scholl
The Fed decided to take the easy 75 that the bond market smoothed the way for them today.
Stocks took it positively after a few starts and stops, and managed to come off their oversold condition.
Tomorrow's market action will be much more telling as we roll into another option expiration.
After a day of more shenanigans, gold and silver found their footing and bolted higher.
So we had a sell the rumor and buy the news event.
Let's see how the rest of the week goes.
Have a pleasant evening.
