OJ, post here only infrequently, but I had a discussion with a friend about AG last night. For the first time ever, I think he's become somewhat of an old fuddy-duddy. I will grant he's brilliant, no doubt.
I'm somewhat of a middle aged fuddy-duddy who has scoffed a bit at all the "new paradigm" stuff. Now, I do believe we have, in this new economy, pockets of deflation - look at your phone bill, the competition driving down prices when you buy products on the 'net. Even petroleum products, which have spiked recently, have not gone crazy on an inflation adjusted basis. Asset inflation (read the stock market) has toned down somewhat recently - this is one IMHO Mr. G is absolutely terrified of.
I think that AG is almost afraid of prosperity, and he certainly is risking sending us into a recession with his tightening monetary policy.
That being said, AG, just raise 50 basis, and get it done, if that's the way you feel - almost everyone, particularly the markets, dislikes uncertainty.
Now, I'll get off my soapbox, and continue lurking... |
