2014: Bubble Babble – Why The Fed Is Clueless

Submitted by Jeffrey Schnider of Alhambra Partners, It is only one word, but it has been repeated so many times by FOMC members in the past year or so it has taken on the imprimatur of officialdom vernacular. Whenever speaking of bubbles, these policymakers inevitably include the word, “obvious.” Long is the list of internal literature that purports to place bubbles in the same category with the Supreme Court’s definition of pornography – we know it only when we see it. In that respect, “obvious” is the perfect qualifier that situates even the brightest of the PhD’s in the same herd as the little guy investor. It would be hard to blame them in disaster if that were actually the case since “everyone” else missed it too. According to St Louis Fed President James Bullard’s “obvious” bubble definition, there have been two “gigantic” bubbles in recent history. In his […] Read More