The job is CEO not king. The other guy never understood that

Agreed

Although in fairness, I suppose that’s what spd was getting at with his “animal spirits” comment. But still, my reply to that would be “who cares?”

I am baffled by the idea that it’s somehow good for the economy if people want to overpay for stocks (or houses or other financial assets). That may provide a short-term economic boost via the wealth effect, but that cuts both ways and there will be a reverse wealth-effect if/when asset prices return to normal. (And if they don’t return to normal, then you’ve permanently lowered future returns, ie you just moved returns forward in time a bit).

Sorry spd, not to pick on you… you’ve just hit on one of my pet peeves*, which in this case is trying to derive meaning from short term stock price movements, combined with a second pet peeve which is pretending there is or should be a relationship between stock performance and presidential performance.

* – I have many, many pet peeves and this is a function of my bad personality, nothing to do with you.

[quote=Rich Toscano]Although in fairness, I suppose that’s what spd was getting at with his “animal spirits” comment. But still, my reply to that would be “who cares?”

I am baffled by the idea that it’s somehow good for the economy if people want to overpay for stocks (or houses or other financial assets). That may provide a short-term economic boost via the wealth effect, but that cuts both ways and there will be a reverse wealth-effect if/when asset prices return to normal. (And if they don’t return to normal, then you’ve permanently lowered future returns, ie you just moved returns forward in time a bit).

Sorry spd, not to pick on you… you’ve just hit on one of my pet peeves*, which in this case is trying to derive meaning from short term stock price movements, combined with a second pet peeve which is pretending there is or should be a relationship between stock performance and presidential performance.

* – I have many, many pet peeves and this is a function of my bad personality, nothing to do with you.[/quote]

That is my complaint about our entire system which is completely run by the Fed (irrespective of President or party in Office). It is disturbing that our economy is run by a secret cult of “Fed Presidents” that aren’t elected or accountable to the people. And as Rich points out this endless money printing to create “wealth effect” just causes people to overpay for assets and the less fortunate to be completely priced out of housing and other things.

Another example of the craziness of this everything bubble we are in: I just pulled up a chart of microsoft stock at random. Since 2017 it is up 400%! Just another example of the extreme price distortion caused by Fed money printing. Anyone who argues this is a good thing is just selfish and greedy because they are part of top % who are benefitting from this.

[quote=gogogosandiego]The Fed is independent of our Government (but accountable to Congress) by design. The Fed’s mandates are set by Congress. The Fed only controls Monetary Policy while Congress controls Fiscal Policy. See where this is going?[/quote]

Not sure where this is going. But I am certain that Congress has no input into the Fed’s decision making. Congress clearly had no input into the Fed’s QE or ZIRP policies. There have been no debates on captitol hill regarding the merits of flooding Trillions of dollars of liquidity into the economy.

[quote=deadzone]That is my complaint about our entire system which is completely run by the Fed (irrespective of President or party in Office). It is disturbing that our economy is run by a secret cult of “Fed Presidents” that aren’t elected or accountable to the people.[/quote]

I have serious doubts that Congress (or a President) would do a better job. It seems to me that too many politicians would direct policy to improve their chance of promoting their party. While it is easy to criticize the current fed policy, I think with Congress in charge things could be way worse.

[quote=XBoxBoy][quote=deadzone]That is my complaint about our entire system which is completely run by the Fed (irrespective of President or party in Office). It is disturbing that our economy is run by a secret cult of “Fed Presidents” that aren’t elected or accountable to the people.[/quote]

I have serious doubts that Congress (or a President) would do a better job. It seems to me that too many politicians would direct policy to improve their chance of promoting their party. While it is easy to criticize the current fed policy, I think with Congress in charge things could be way worse.[/quote]

Well if Congress was involved it would be partisan but at least there would be debate. The Fed policies primarily benefit the rich and they are causing major problems with affordability for the average American (to buy houses among other things). I find it ironic that the Democratic party is the one who talks about supporting working class, poor, etc. and championing affordable housing, etc. Yet not a peep from Biden or any of them regarding this asset bubble and the fact that the Fed is behind it.

Just further confirms the sad reality of what we already knew (unless you’ve been living under a rock since 2008), that the U.S. (including both parties) is controlled by the Wall St. Banks.