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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who started this subject2/6/2004 9:06:34 AM
From: gregor_us  Read Replies (1) of 110194
 
The Fed is Caught in the Swamp of Language.

I cannot claim to have been a Fed Watcher my whole life, but clearly the Economy continues to greatly concern the Fed--because in the last 36 months they have conducted themselves as a Open Door Chat Society. One result is that they have ceded, totally, the ability to do their work quietly, intermittently, and with some measure of surprise.

This is the Nanny Fed. They've pledged to tell you everything they're thinking, 24/7/365--and have promised to not frighten you by making any changes in your routines, without ample, constant warning. The result is that they are deeply beholden to "language" and running commentary.

What I've decided to do is to *try* and remember a time when the Fed didn't speak so much. As their mountain of verbiage piles higher--they make less and less sense. If one really parses the Bernanke and Moskow remarks this week, one has to conclude that instead of saying "something", they said "everything." Which is like saying "nothing."

Worried people who are trying to gain control over a situation that is very nearly out of hand tend to resort to language. They talk alot. And, I think the Fed is worried. Very worried.
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