That clown managed to avoid mentioning FNM in the discussion of the credit bubble, and also thinks Arthur Levitt and Robert Rubin did a GOOD job (while nurturing the bubble to tremendous heights in the 90's!?)
A ridiculous piece, but nice to see credit concerns start to get some ink. For the real skinny, better to read Noland:
prudentbear.com
In his opening paragraph, he blasts both Kudlow and McSteer in one fell swoop! Nice job, LOL!
This week from Larry Kudlow: “The Fed lowered the target interest rate to 1.25% this week, which was fine in itself. But the action was made sweeter by the announcement that accompanied it: The Federal Reserve ‘continues to believe that an accommodative stance of monetary policy, coupled with still-robust underlying growth in productivity, is providing important ongoing support to economic activity.’ The crucial reference to productivity suggests that the old Alan Greenspan is back. In the late 1990s, the Fed chairman consistently – and correctly – argued that rapid productivity gains were increasing the economy’s potential to grow. Therefore, the Fed could afford to be more generous with the cash without being concerned about inflation… Why Greenspan departed from this script in 2000 is one of the great mysteries of monetary history. For about 18 months, into the middle of 2001, the estimable Fed chairman worried that too-high stock prices and too-strong growth were reviving inflation. So, rather than keeping the economy’s money-pump primed, he deflated the money supply, all while ignoring clear recessionary signals… And over at the Federal Reserve, the recent decision to link productivity with monetary policy strongly suggests that Dallas Fed president Robert McTeer is being groomed to succeed Greenspan…” What? And you’ve got to be kidding…
Also, a very nice find here. Hope none of you clowns own
(j)ANUS money market funds!<NFG>
November 14 – Dow Jones: “Janus Capital Management LLC, the mutual-fund company owned by Stilwell Financial Inc. (SV), purchased $85 million of investment-grade commercial paper from its Institutional Janus Money Market Fund, according to a regulatory filing Thursday. Janus made the purchase Oct. 31 because the credit rating of the commercial paper was downgraded below the level that Janus management believed was prudent for the fund to own the investment, Stilwell said in its third-quarter report
filed with the Securities and Exchange Commission. Janus funded the transaction with $41 million from its credit line and a $44 million short-term borrowing arrangement, the filing said.” |
