Dallas Fed President Richard Fisher says that if the worst happens and the nation goes over the fiscal cliff, he doesn’t see the Fed providing a backstop. Here is a direct link.
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Dallas Fed President Richard Fisher says that if the worst happens and the nation goes over the fiscal cliff, he doesn’t see the Fed providing a backstop. Here is a direct link.
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A clear warning shot for congress.
Yeah right! Every time the economy has gotten a cold in the past 4 years they’ve spent money like drunk sailors. This time is different, right? NOT!
Fact is, they have already backstopped it – they are buying $40B each month – to infinity – that is their official policy!!!!!
Then again, with no election to worry about, maybe they’ll just let the economy go straight to the bottom! That’s OK – my truck reverse gear still works great!
What Fisher says makes sense. Too bad it’s not what the Fed will actually do (until either the bond market revolts, or the US military can no longer prop up the dollar).
A couple of other notes:
• Fisher, in a Freudian slip, admitted the Fed has violated its fiduciary responsibility to the American people. No! Really?!
• Kudlow is such a kiss-ass. What, is he posturing for a spot on the FOMC? Maybe they should just stick him somewhere in the sub-basement of 33 Liberty St.