Dallas Fed’s Fisher Stunner: Admits Worries Fed Has Created Nothing But Bubbles

Tuesday, October 19, 2010
By Paul Martin

by Tyler Durden
ZeroHedge.com
10/19/2010

The war of words continues, this time with Dallas Fed’s Fisher. More quotes from the fourth spoke in the Kocherlakota, Plosser, Hoenig, hawk sanity quadrangle. In his just released speech we read this stunner: “In my darkest moments, I have begun to wonder if the monetary accommodation we have already engineered might even be working in the wrong places.” Aside from adding Fisher to the Shirakawa, Hildebrand suicide watch, it is notable that the Fed is finally doubting the actions of the Fed, and realizing it is creating neither employment, nor moderate inflation, but just bubbles, bubbles and more bubbles. And here is why Fisher may soon be looking to resign: “A great many baby boomers or older cohorts who played by the rules, saved their money and migrated over time, as prudent investment counselors advise, to short- to intermediate-dated, fixed-income instruments are earning extremely low nominal and real returns on their savings. Further reductions in rates earned on savings will hardly endear the Fed to this portion of the population.” Hardly indeed. And next time it won’t be the Pentagon.

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The rest…HERE

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