Dallas Fed's Fisher as the Light at the End of This Crazy Monetary Tunnel
These statements are 2 months old but completely relevant because the face of the FOMC is changing dramatically next year and God I couldn't be more ready for it.
See his confession to the Economic Club of Minnesota, October 7, 2010:
In my darkest moments I have begun to wonder if the monetary accommodation we have already engineered might even be working in the wrong places. Far too many of the large corporations I survey that are committing to fixed investment report that the most effective way to deploy cheap money raised in the current bond markets or in the form of loans from banks, beyond buying in stock or expanding dividends, is to invest it abroad where taxes are lower and governments are more eager to please. This would not be of concern if foreign direct investment in the U.S. were offsetting this impulse. This year, however, net direct investment in the U.S. has been running at a pace that would exceed minus $200 billion, meaning outflows of foreign direct investment are exceeding inflows by a healthy margin. We will have to watch the data as it unfolds to see if this is momentary fillip or evidence of a broader trend. But I wonder: If others cotton to the view that the Fed is eager to “open the spigots,” might this not add to the uncertainty already created by the fiscal incontinence of Congress and the regulatory and rule-making “excesses” about which businesses now complain?
RF has obviously been reading too much Jr Deputy Accountant, if there is such a thing as too much.
If you're into it, the NYT has a great write-up on what to expect next year. My official write-up is still in progress, after I work off the 14 lbs I put on over Christmas weekend I might be able to lift my laptop into my lap and get to it.
Philadelphia Fed's Chuck Plosser is obviously off the reservation and willing to make some bold statements of his own but it's Fisher that will be doing most of the shit-disturbing at the conference table in 2011, something JDA has been waiting more patiently for than Christmas morning all year. The Janet Yellen bitchslap bounty, which once stood at a mere $15,000, is now up to $50,000 for the first Fed asshat bold enough to reach across the table and give her a good wack. $50,000 and my undying love and affection for eternity, of course.
Anyway, I'll be standing in front of the Board all year with a "SAVE US, RICHARD FISHER!" sign on FOMC days if anyone cares to visit.
You can obviously see where I stand on the matter.