Unbelievable: Lacker Gets Dethroned by Fisher as JDA's Favorite Fedhead!
In things I never thought I would see in my lifetime news, Jeffrey Lacker has been officially dethroned as JDA's favorite Fedhead and let me tell you why. Lacker should already know full well why he's in the JDA punishment corner and no, it has nothing to do with his haircare decisions of late. Sorry homie but your colleague from Dallas has totally toppled you as JDA's #1.
Let's talk about recent events and things Fedheads actually say. I get it, it's a rough job. Not everyone can be Alan Greenspan, with 143 deaths credited to his words and actions alone (wow!).
Lacker has favored the word "choppy" to describe our difficult climb out of awful and while he won't say it to reporters badgering him in front of $4 million money museum openings, he's concerned that things aren't as good as they'd hoped they were some months or weeks back. Still, his infuriatingly macro approach means he wastes a lot of time hob-nobbing with his district's economic winners only to be completely baffled by the concept of data not working out in practical application like the models had predicted. Poor thing. He's got excellent case studies staring him in the face and can't figure out why it's all fucking weird out there.
Meanwhile, Dallas Fed's Fisher has taken a liking to "slow slog", a term yours truly has embraced of late simply because it's undeniable that we're on an upward climb, albeit a long hard one. He said it last week to the Greater San Antonio Chamber of Commerce and before in May of 2009 in prepared remarks to the 125th Annual Convention of the Texas Bankers Association. Then again he favors "slow" and I'm hip to "long hard..."
Point being, Lacker's been slipping of late. Granted, I learned later than his comments about "housing doesn't matter" were taken out of context by Reuters reporters and therefore not nearly as lame as they appeared at first but let's pull his latest speech and see how THAT works out, shall we? You don't have to like either of them, I'm just telling you it's good to have a couple geniuses on the demolition team ifyoufeelmeonthat.
Case in point, credit markets:
Credit market conditions have been central to the story of the recession and the recovery. Conditions tightened sharply as the recession began, and have improved considerably since the middle of last year as the economic outlook improved. Still, I regularly hear complaints about small businesses being unable to obtain credit. It is certainly true that there are banks and other lenders who have experienced large losses and are now facing a relatively high cost of capital. Those lenders are now reducing their outstanding loans, and firms that have traditionally borrowed from these now-capital-constrained lenders may have difficulty getting new loans, or even retaining existing credit lines. But many banks appear to be ready and able to lend to creditworthy customers – that's what banking is all about. So while borrowers may need to shop around more in this environment, my sense is that the credit market is working well enough to support productive investment and allow a solid recovery to proceed.
I highly doubt that's what he really believes and if he does, he should try to secure a bunch of credit just for shits and giggles to figure out just how bad it is out there. It seized up in 2008 but is certainly not anywhere close to normal to date and if he believes it is, he needs to take a voluntary pay cut at the Richmond Fed and find out what it feels like to try to get some credit these days. Not like he has any knowledge of anything remotely like what I just described.
So sorry, again, but you've been bumped. Go back to bemoaning the miserable outlook and pissing people off by bitchfighting with your blind ass colleagues and maybe we can go back to being cool.
It's not a contest. But if it were a contest... we know who wins for now.
I think some of them have realized that they are going to have to save their own asses. It helps to have unlikely fans who get it.