Monday, October 08, 2007

The New Economics

Federal Reserve watchers know Bank of Dallas President Richard Fisher as "Eighth Inning Dick" for his comment in June 2005 that the Fed was "clearly in the eighth inning of a tightening cycle." The eighth inning then became a double-header. When the script calls for someone unencumbered by credibility and willing to say anything, Fisher gets the call.

If oil hits $90, here's the Fed's rhetorical palliative for the airwaves, polished up and ready to go. $100? You can almost hear inflation falling. Remember, we create our own reality now -- print enough money and "the vicious becomes the virtuous"!

Every era of economic folly has its own set of speeches and writings that historians eventually use to show how crazy things got. Fisher seems determined not to be forgotten.

3 Comments:

Anonymous The Lounsbury said...

Ah, look at it this way mate, driving investment and innovation in alternative energy sources!

10/08/2007 5:23 AM  
Anonymous JackofallTirades said...

I know this isn't the point of the blog, but should we be pulling our money out of the markets now? I've inferred from previous posts that the stock market will do well, even if the value of the dollar is weakened relative to foreign currencies.

10/08/2007 12:24 PM  
Anonymous goldhorder said...

He cracks me up.

http://www.kitco.com/ind/Daughty/oct052007.html

10/08/2007 3:08 PM  

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