The Cocaine Train May Have Only Just Begun

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.