The big talk out of Jackson Hole is Woodford’s paper regarding Fed policy. Apparently, there is a movement to discard of the Fed tracking 2% inflation in exchange for tracking nominal GDP. In other words, POMO Gorillas highs on cocaine forever.
Forget inflation; focus on growth, by any means necessary.
My opinion is meaningless on the matter and I know far less about economics than a gentleman scholar like Woodford. Instead of debating whether this is a good idea or not, I’d rather focus on the potential outcomes for such a radical policy change at the Fed. It would usher in a new era of free money, buoy stocks to new highs, establishing a nouveau rich like you’ve never imagined– all the while tossing the poor and middle class families directly in front of the fenders of rapidly rising commodity and food prices.
Under a Federal Reserve policy that targets growth, one could not be foolish enough to risk shorting stocks anymore. That would be viewed as “old hat”, a relic of yesterday, left behind like the 8-track or kerosene lantern.
In other news, JPM just cut its target on FB from $45 to $30. How timely of them? I wonder if that analyst even cares that he sucks dick and no one respects his opinion? Does that even matter to him ?
Before passing judgement on today’s tape, I need to see how prices respond to Europe’s sell off. I’m not overly concerned over a potential sell off. Nevertheless, the winter is coming and stocks can’t go up forever. We’re overdue a good miniature panic, in order to properly introduce investors to the seasonal change from summer to fall, as is customary for this business for more than 100 years.
12 Responses to The Cocaine Train May Have Only Just Begun
still going to keep that big NFLX position Fly?
All aboard! -but not me…
Wow at NFLX. I thought everyone already knew Amazon would net a Epix deal?
Fucking NFLX has to be the worst managed company in America.
I was reading some Woodford Papers myself this weekend….
Redbreast Irish Pot Still Whiskey also sets up a good reading session.
PFMT just incase anyone want to bank some coin today
Spanish yields coming in.
Full steam ahead.
That should be required reading, for any financial blogger worth his/her weight in gold. The Wordford Paper: http://kansascityfed.org/publicat/sympos/2012/mw.pdf?sm=jh083112-4