Talkin’ the Talk


The chart of Dec 16 Eurodollars says everything you need to know about the failure of Fed openness. For 2 years now, Fed officials have prodded participants to prepare for the "normalization" of rates. As the old "green month" has converged toward the front, the climb has amounted to a mid-evil bloodletting to those subscribing to Janet's tonsorial services.

This is more than the gravitational pull of ZIRP. It is a stark critique of the policy of jawboning markets. The focus at the central bank is to be more OPEN, unfortunately, this has no correlation to being more correct about your predictions.


Low rates are not historically abnormal. The sooner the Fed shuts up, the quicker those listening to them will stop losing money.


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