Just a little shout out to Uncle Ben.
QEII couldn’t have been more ill-timed and damaging. It almost singlehandedly increased the price of commodities of all types significantly and it bought some Holiday confidence. Now we deal with the oil shock and realistically nothing left to combat it.
We’ve bought higher assets prices but also demand destruction. And prices for most assets are simply too high. What’s next from your bag of tricks? You cannot raise interest rates or deviate from ZIRP. How about direct transfer payments to all? Get the Jawbone ready!
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Hoooooraaaayyy Transfer Payments! Lets do it up Saudi style and make it tens of billions…NO, hundreds of billions, dare I say…>>Trillions!<<.
I can tell you something oil is a big deal, I hear everyone is cutting back and complaining,”experts” say that people can handle four dollar a gallon gas well I think they can’t handle three fifty gas.
We will crash hard if this if it last for more than a month I guarantee it.
uncle bens next gig should be to give every american that has paid into so-sec for the last 40 yrs a 50k check thats tax free,and let us save our own damn country
oh, boy, risking the insults that seem to get handed to dissenters in blog comments from time to time… and noting exemplary performance over the last year from this blog…
that “blame everything in the world on the Fed” thing is a bit of a stretch and a bit overdone, methinks
We, here on “Wall Street” are equally to blame
an open assault on any of these for rising commodity prices would be at least as rational:
1. china for the worlds all time record real estate bubble and binge
2. speculators for chasing 10 years of positive commodity momentum (its going to take awhile for the momo crowd to give up on commodities, even after a third deflationary scare, I am guessing they will come back)
The surging commodity prices are something that has happened before QE, and even before the Federal Reserve was created. Commods have a long history of sitting around for a decade or two and then surging for a decade or so, then plateauing and taking some time off.
The surging commod prices seems to correlate very well with a period of economic malaise and poor equity performance. At a minimum, what we’re seeing here (and this decade) rhymes with history.
he who controls parts of the worlds’ purse strings should not take any heat. hey,you cant blame obama,he does not print bucks.
I hold nobody blameless or completely to blame. But in the end it is not nearly as simple as the “damn the fed” arguments, repeated hundreds of times per day in blogs everywhere, make it seem. To no small extent this commodity boom would have happened with no QE. In fact, it already was happening with no QE.
In 2008 the rallying cry was something different, today its “QE2”.