If you don't Silver Stack you will be left behind

My only possible disagreement with Feldstein is timing. If he's calling for another 25 basis points TODAY (it IS one of those days), he's nuts. The first rise needs more time to cook. But if all he's saying is 75 more basis points between now and December's FOMC meeting, then yeah, I agree.

I agree with this part so much I could almost have written it myself:

"... contrary to what a lot of people say, there hasn’t been a big increase in the money supply, and therefore inflation is unlikely. People have said to me, ‘since we’ve had this explosion of money, why didn’t that create inflation?’ And what I wrote that we haven’t had that explosion of money, what happened was the commercial banks took the opportunity to just leave funds at the Federal Reserve."

 

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He's not calling for 75bps without more data first.

I hope they can make more sense of the data than the media can reporting it. Trying to read that crap is like listening to an episode of Gollum-Smeagol.

 

Two things creep me out. 1) Anything having to do with Gollum, and 2) listening to media trying to explain economics to laymen. One of the best I've heard is the first few minutes on APM:Marketplace each Friday. They do a "round table" of their economics reporters and drive host Kai Ryssdahl about half nuts. If you can handle the Brit sensibilities, The Economist ain't half bad.

 

ttt