In an interview on Bloomberg TV the well known Jimmy Rogers stated the Fed is irrelevant because they follow the market. They are always behind the curve.
Greenspan, in answering a question from M. Bartiromo on why he lowered interest rates to 1%, said (and I quote): the markets did. In other words, he followed the markets.
Make no mistake about it. The Fed follows the markets trying to fix the problems the policy makers create. Their main objective is to protect the banking system at any price, whatever the consequences.
What is the price we are paying with the latest Fed easing? The dollar tanked as the Dow jumped 335 points. Oil soared above $82. Gold surged past $735. And last, but not least, long bonds weakened.
What does it mean? The price we will pay is lower purchasing power. The Fed is creating the next bubble. And I am planning to profit from it.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
1 comment:
Any ideas on the next bubble? Soros and Jim Rogers will short it at the top and Buffett will buy it just after the panic. So what are we mere mortals supposed to do?
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