Fed Watch: Same Old Song And Dance

In a move that surprises absolutely no one, Fed chief Ben "More Questions Than Answers" Bernanke shepherded yet another federal funds rate increase. Tell me again why Greenspan retired?

Bankrate's Holden Lewis has a concise run-down of winners and losers in the horse race. Notice that there are a lot more losers than winners, especially in the real estate market. Reuters has a collection of chattering on what this latest increase means. Money quote:

"The implications for monetary policy of the recent behavior of long-term yields are not at all clear-cut."

"But to the extent that long-term rates have been influenced by macroeconomic conditions, including such factors as trends in global saving and investment, the required policy rate will be lower."

Translation: We have NO IDEA WHAT THE HELL WE'RE DOING, but as long as people keep buying houses and wages don't get too high--Ooh, shiny! Look!

Of course, for some people, this is akin to Numfar doing the dance of joy, not shame. Witness Housing Panic's feelings on the matter:

So to the moon Mr. Ben! 5%! 6%! 7%! 8%! go go go!!!

OK, I'm a sick mutha f*cka. But I guarantee I'm not alone on this one, eh?

No, indeed not. :) I wonder, for example, what Lennar knows that Toll Brothers does not, for example...or why we're getting reports saying that consumer confidence is at a three-year high, when we just got reports yesterday saying the exact opposite thing?

Numfar, do the dance of...uh, well, we're not sure yet.

Posted at March 28, 2006 06:44 PM

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In a move that surprises absolutely no one, Fed chief Ben "More Questions Than Answers" Bernanke shepherded yet another federal funds rate increase. Tell me again why Greenspan retired? Bankrate's Holden Lewis has a concise run-down of winners and losers in the horse race. Notice that there are a lot more losers than winners, especially in the real estate market. Reuters has a collection of chattering on what this latest increase means. Money quote: "The implications for monetary policy of the recent behavior of long-term yields are not at all clear-cut." Bernanke said that if the low level of long-term rates reflected a decline in the compensation investors demanded to cover the risk on holding long-term assets, then it could signal stimulative financial conditions that would require higher short-term rates than otherwise to offset. "But to the extent that long-term rates have been influenced by macroeconomic conditions, including such factors as trends in global saving and investment, the required policy rate will be lower." Translation: We have NO IDEA WHAT THE HELL WE'RE DOING, but as long as people keep buying houses and wages don't get too high--Ooh, shiny! Look! Of course, for some people, this is akin to Numfar doing the dance of joy, not shame. Witness Housing Panic's feelings on the matter: So to the moon Mr. Ben! 5%! 6%! 7%! 8%! go go go!!! OK, I'm a sick mutha f*cka. But I guarantee I'm not alone on this one, eh? No, indeed not. :) I wonder, for example, what Lennar knows that Toll Brothers does not, for example...or why we're getting reports saying that consumer confidence is at a three-year high, when we just got reports yesterday saying the exact opposite thing? Numfar, do the dance of...uh, well, we're not sure yet.