"The specter of inflation that was supposed to scare investors back into commodities has so far stayed in the shadows. ... Eventually, Fed experimentation could send too many dollars coursing through the economy, setting off a nightmare scenario of rocketing, uncontrolled prices. Yet economist Ed McKelvey [EM] of Goldman Sachs [GSG] argues that is highly unlikely, and besides, the US central bank has ways to shut the monetary spigot, too-for instance, by shelving plans to buy mortgage-backed securities, or by raising interest rates", Gregory Meyer at Barron's, 11 May 2009.
Is EM serious? Or is his comment GSG's way of saying "thank you" for its stress test result?
3 comments:
All the clever boys in the Fed/Goldman nexus... playing a high stakes game with the lives of hundreds of millions of people...
I think we should call their bag of tricks "greenshooting"... and I imagine them having a little meetings and sharing their little studies... "let's buy up MBS" one clever GS economist says... "yes, call Ben and tell him but let's take a big position first...".
Does it happen... not that crudely... but the revolving door swings and swings... and here is a criminal example of it..
A former economist at Goldman Sachs was sentenced yesterday to nearly three years in prison for relaying an insider bond tip that allowed the firm to make millions of dollars in tainted profits.
No comment issued by the big banking interests on Wall Street are ever issued without thought to political consequence. Everything is calculated and everything is connected at the upper echelon. Doesn't make it right or wrong...just makes it reality. Really enjoy your posts and commentary. Keep up the good thinking...
Robert
http://www.accountingnation.com
Awww what a cute reacharound. Isn't it sweet when they play nicely with each other?
Jr
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