The Fed's Latest Tactic: Divine Intervention?
When in doubt, just pray, little Fed boys.
After the overwhelming response to my Mortgage Lender Implode-o-Meter article yesterday (which just so happens to have a clever Richmond Fed twist, go ask WC Varones and he'll catch you up after fronting off creepy IMF Googlers), I could see why the Fed might start using unconventional methods to accomplish its goals.
Via St Paul's Episcopal Church in Richmond (I'm not kidding):
In our largest Eyes on Richmond ever, over 140 people attended today's lunch with Jeffrey Lacker, President of the Federal Reserve Bank of Richmond.
Remarks to remember:
"In the middle of the year, probably sometime around June or July, the contraction in economic activity came to an end. And economic activity has been increasing since then. Now, the economy is made up of millions and millions of people so not everyone is feeling it the same way. Some people are doing very well. Some people stabilize. And the unemployment rate is still increasing so the labor market is still soft. And, people who have lost their jobs, many of them are having a hard time finding a new job. So, just because the contraction is over doesn't mean the pain is gone. It's going to be a painful situation for many people for awhile."
Another quote to remember: "There but for the Grace of God go I."
Head over to St Paul's to hear Lacker's lunch speech this afternoon.
And should any non-Richmond Fed rats end up here on Jr Deputy Accountant, she humbly suggests they start praying too. This might get ugly and monetary policy will need all the help it can get.
Bust out the Hail Marys, you pricks, not even Divine Intervention can help you now but it's worth a shot. That little heretic Kohn could learn a thing or two about this I'm sure.
p.s. Great job, JL. Wouldn't want to scare the little Episcopalians, now would we?