by David Stockman
David Stockman’s Contra Corner
We are speaking, of course, of the Fed’s decision to punt yet again, and for a reason that is not mysterious at all. To wit, our financial rulers are petrified of a stock market hissy fit, and will go to any length of dissimulation and double-talk to avoid triggering a crash of the very bubbles their policies have inflated.
So now the money market rate will be pinned to the zero bound for 96 months running—–through at least December. Indeed, hell itself could freeze over before these cowardly fools would raise rates at their next meeting a week before the elections—–and most especially not when the Donald is remonstrating loudly and correctly that the whole thing is rigged.
Not that any more evidence was needed, but today’s decision surely proves that our financial rulers have wandered so deep into their monetary puzzle palace that they have now lost touch with every vestige of the real world. That’s because there is not a shred of evidence that more free money for the Wall Street gamblers will do anything except further inflate financial asset values that are already tottering in the nosebleed section of history.