by David Stockman
David Stockman’s Contra Corner
The robo-machines and reflexive dip-buyers who took Fed governor Lael Brainard’s word for it on Monday got kicked in the teeth pretty hard on Tuesday. But then again, why would even a silicon-based trader take her word for anything?
Brainard is absolutely clueless about the manner in which the Fed and other central banks have booby-trapped the world’s financial markets with incendiary bubbles and FEDs (financial explosive devices).
After all, she has never set foot in any precinct of the capitalist economy since moving out of her dorm room at Wesleyan University in 1983. Instead, she’s been traveling the beltway apparatchik route every step of the way——including stints at the White House, Brookings and the US Treasury before her arrival at the Eccles Building.