An illiterate teenager with no fiscal responsibility comes looking for some money from his father, is granted whatever he asks for, rather demands and off he goes about his business without any long term consequences or modification in his behavior.
Watching the Dow yesterday and especially B of A stock price (down 51% in 2011), I was reminded of the Fed as father to the teenager banks, many of whom have engaged in reckless fiscal irresponsibility over the past several years. Indeed AIG is to sue Bank of America for $10 billion. See link below
http://www.bloomberg.com/news/2011-08-08/aig-plans-to-sue-bank-of-america-over-losses-tied-to-mortgage-underwriting.html
Bernanke & Co. will meet today at 2:15pm with little or no room for maneuver, a few absurd statements on the economy and the usual vague pronouncements on the economy, unemployment and money flows.
Watching Obama speaking to reporters yesterday, I noticed the longer he spoke the lower the Dow sank. My prediction on 8/8 was Dow -500. My expectations were exceeded by 134 points.
All eyes on the Fed today. My prediction QE-3 and unintended consequences.
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