Courtesy of Michael Panzner of Financial Armageddon
Uh-oh. Looks like a policymaker has gone off his meds stopped drinking the Kool-Aid gone off-message (while appearing on bubblevision, no less):
"US Economy Is on ‘Knife’s Edge’: Fed Economist" (CNBC)
The U.S. jobs engine has lost momentum and could be set for further "backtracking," Meanwhile, he said, there is also a "credible" risk of rising inflation.
"We are in the midst of the Second Great Contraction," Rosenblum said, demonstrating the economy’s predicament with a a picture of a place on the Appalachian Trail known as "Knife’s Edge."
"This patient is still not ready to get out of the hospital, there are still tubes connected to the patient, and the patient is still not responding well to all the medicine," he said.
The grim assessment of the economic outlook came a week after a majority of the Fed’s policy-setting panel backed further monetary policy easing to help support a faltering U.S. recovery.
What will we have next — an admission that the central bank’s efforts are ineffective or do more harm than good? If the following is anything to go by, the answer is "yes" (courtesy of Zero Hedge):
Speaking in Dallas, Bloomberg reports some rather refreshingly honest headlines from outspoken Fed President [Richard Fisher]:
*FISHER SAYS FED POLICY `HAS YET TO SHOW EVIDENCE OF WORKING’
*FISHER SAYS BENEFITS OF OPERATION TWIST DON’T OUTWEIGH COSTS
*FISHER SAYS RECENT FOMC POLICIES LIKELY TO BE INEFFECTIVE
*FISHER SAYS FOMC POLICIES MAY WORK AGAINST JOB CREATION
*FISHER SAYS OPERATION TWIST WILL INCREASE INCENTIVES TO SAVE
And as we noted vociferously in the lead up to the decision (and hence a focus on 2s10s30s):
*FISHER SAYS BANKS’ EARNING POWER WILL COME UNDER ADDED PRESSURE
*FISHER SAYS TWIST TO EXPOSE FED TO LOSSES WHEN RATES RISE
And the piece de resistance (summarizing everything):
*FISHER SEES `MORAL HAZARD’ IN BEING OVERLY ACCOMMODATIVE
*FISHER SAYS FURTHER MONETARY ACCOMMODATION `PUSHING ON STRING’
Wow. Lot’s of sharing today. Feel better?
