Most of my weekend reading lists are generally focused on a common theme, however, that will not be the case this time. There were just too many interesting readings to share with you and felt that I would be remiss not to bring your attention to them. Therefore, this weekend’s “Things To Ponderâ€Â is comprised of a variety of readings that cover a fairly broad spectrum from educational to informative and even a little bit sarcastic. I hope that you will enjoy them.
1) Stanley Fischer & Schrodinger’s Cat by Jeffrey Snider via Alhambra Partners
This past Monday, Stanley Fischer, the official who took over as Vice Chairman of the Federal Reserve in June, commented that the weak economic recovery might simply be continued fallout from the financial crisis and subsequent recession. However, “it is also possible that the underperformance reflects a more structural, longer-term shift in the global economy.â€
Much ink was spilled in response to his comments, however, an interesting take came from Jeffrey Snider. To wit:
“That should be the one unambiguous observation for all of the monetary pieces of this grand experimentation; ‘despite historically low interest rates,’ a qualifier that disqualifies monetary policy of having the effects it both intends and expects. In his conclusions, despite all these allusions to unspecified problems and deficiencies, Fischer is both still somehow supportive of the idea QE was successful and more than sanguine about the further efficacy of related policy prescriptions, including the growing chorus turning fad of ‘macroprudential’ policies.
No theories were expended by Mr. Fischer as to what may actually be drastically altering the trajectory of investment in the US and globally, these unnamed ‘supply’ structures…The lack of actual speculation on this account is quite revealing, as it is in the course of observing it in context.â€
