Now, talk about your parties; yesterday jolly old Saint Ben (Bernanke) pulled yet another goody from his bag of gifts. More QE --- which is the Fed creating money to buy assets from bankers who'll add the cash to their excess reserves which they deposit at the Fed that pays them .25% interest --- and a promise that they'll keep it up until the unemployment rate drops to 6.5%. And another promise that when it drops to 6.5% they'll keep it up anyway. Yes, I quote Bernanke:
Reaching the thresholds will not immediately trigger a reduction in policy accommodation. No single indicator provides a complete assessment of the state of the labor market.
Kind Mr. Bernanke has not a grinchly (or Volckerly) bone in his body.
My son Nick and I meet once a week to discuss markets, world affairs, managing money, etc. This week we chatted a bit about the European debt debacle, how a nation can print, spend and regulate itself sick, and how it gets fixed. I told him that budget news out of Greece is only good news if its citizens are burning down Athens (as awful as that sounds). That means they're trimming the public sector.
Truly, prosperity is not something policymakers can wrap up in a bow and hand out to their guests. It comes from economic freedom, creativity and hard work!
"How could it be so? It came without ribbons!... it came without tags!... it came without packages, boxes, or bags!" --The Grinch