Recipient Not Following You

The title is the message you get on Twitter when you try and DM an outsider. It's also the message the US public is sending back to Washington DC. Whether the White House, Congress or the Fed - policy objective is not getting through to Main St. Capital markets have oscillated wildly  in rebuttal to the steady bureaucratic meddling.

Like the smarmy representative from Brooklyn, the plan is to up the up the conversation. A plethora of photo ops and Fed speakers will litter the airwaves in the days ahead. The result will be the same notification: Recipient not following you. Pres. Obama discussing EU debt with Merkel while the US plays chicken with the debt ceiling and the budget is almost comical. What could he tell her, "Don't you wish you could devalue your way out of this like me?"

The bottom line is neither the markets nor the public will cooperate in this disgrace much longer. "Moral hazard" used to be the warning cliche for extraordinary actions. The reality is public officials of all stripes have no morals and are swimming purely in the "hazard" swamp. So far, the flood of Central Bank liquidity has ebbed and flowed in a relatively orderly fashion. Just ask Rep. Wiener though, once the game unravels, things collapse quickly.

 

 

 

 

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