Monday, November 23, 2009

Jim Bullard Comments…

St. Louis Fed President, Jim Bullard, was the replacement for Mr. Poole to head the St. Louis Fed. If you’ve ever wondered why the Fed doesn’t seem to know what’s going on with much of anything, look no further. I can conclusively say that I disagree with almost every utterance from his lips – as in the exact opposite. Someone who obviously hasn’t learned the real lessons of the crisis, he believes that it’s his job to “get credit flowing again.” He has no idea why a “jobless recovery might just be the new standard” because he has not figured out the decelerating effects that debt has on the economy, on the velocity of money, and on unemployment. Despite having a Ph.D in economics, and being a Fed research writer (have you read many of those reports?), I think it’s safe to say that he’s never put together a chart of debt levels on the same page as a chart with unemployment or anything else. It’s almost as if being submersed in the myth and misinformation kills off one’s common sense… sigh. Not a bright future to look forward to - he becomes a voting FOMC member soon.