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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Seismo who wrote (41823)	12/14/2012 8:19:02 AM
From: Seismo	Respond to of 222129

Dallas Fed President Richard Fisher has said he is worried the Fed is in a "Hotel California" type of monetary policy because of its "engorged balance sheet". Using words from the famous song by The Eagles, he said he feared the Fed would be able to "check out anytime you like, but never leave." Speaking to CNBC's "Squawk Box", Fisher said he worried that markets will become overly concerned with the new inflation and unemployment thresholds. Richmond Federal Reserve President Jeffrey Lacker, explaining why he had voted against the Fed's policy actions on Wednesday, also criticized the adoption of numerical thresholds by the U.S. central bank to guide future policy...... Furthermore, he argued buying mortgage-backed bonds meant the Fed was favoring housing over other parts of the economy. "Deliberately tilting the flow of credit to one particular economic sector is an inappropriate role for the Federal Reserve," he said, adding that trying to influence credit allocation within the economy was a function of fiscal policy. Seismo says: It is the capital markets that should determine the most productive and efficient areas in the economy to allocate capital. If we are going to have our government do that then we might as well adopt China's system. At least they attempt comprehensive planning into their market manipulations.