As capital markets hang again today on the next complex deceit of PSI manipulation in Greece and rumors that the Fed could actually be considering another round of QE before the election in November, those of us who are not yet brain damaged on central bank crack, can only build cover and watch with amazement at how crazy, crazy gets. Here is the quote of the day from David Stockman:
“As far as I’m concerned, Bernanke is the monetary Darth Vader. He has destroyed the bond market. Because fundamentally, in a healthy capitalist system, the interest rate in the money market and in the longer-term capital market is the price of money and the price of capital. And if the pricing system isn’t working, if it’s been totally crushed, disabled, manipulated, rigged, medicated, everything that the Fed has done with QE1, QE2, zero interest rates, Operation Twist – all the rest of this insanity – then we’ve destroyed the ability of the capital market to function and we’re giving false signals in every direction.” –David Stockman, former budget director for Ronald Reagan
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