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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (77055)	3/29/2008 5:30:14 AM
From: stockfiend	Respond to of 116555

I agree, all our bickering about deflation vs. inflation misses the forest for the trees. I think this country ran off the rails when the Fed started believing in the 90's that they had mastered the art of monetary policy and the business cycle. The '87 stock market crash, roaring 90's, incredible productivity growth, low inflation, asian crises, LTCM, tech bubble, 9/11...major successes and events that the looked dire and scary but never derailed the macro picture. They must have thought themselves geniuses. Each success begat more success and confidence, leading them to believe they could micro-manage the economy through any storm, even a storm of their own making, a storm created by a risky experiment to throw out the rule book and let the entire financial industry rum amok with unlimited liquidity and no regulation or supervision. Their successes were mostly illusory. They were either inadvertent, exogenous, or short-term in benefit but long-term in consequence. I think they're starting to get a hint of humility now, albeit a little too late. The Fed needs an enema.