The take away from the Fed meeting is not QE3 or Exit. The take away is brace yourselves, we are into the gloaming. The Fed balance sheet is now a monetary flying buttress to a magnificent but structurally flawed beauty called America. 2% growth and 8% unemployment would still be considered "improvement." Countries faced with similar problems tend to exhibit slower growth AND stickier inflation. The gloaming is the phase when comparisons to cycles past are finally abandoned for the newer, harsher reality. The gloaming is the time after sunset before the dark.
I keep coming back to The Great Gatsby.
"Gatsby believed in the green light, the orgastic future that year by year recedes before us. It eluded us then, but that's no matter - tomorrow we will run faster, stretch our arms further...And one fine morning -"
"So we beat on, boats against the current, borne back ceaselessly into the past." F.Scott Fitzgerald
Is this what I read between the quivering lines of The Chairman's presser? Does anyone still believe in the "orgastic future?" Is the "green light" just the flashing laser pen of another angry austerity spanked protester? We have become very good at accepting the gloaming as inevitable.
Rage, Rage America, against the dying of the light. (D.T.)