A Reprise of November 6th, 2010

Einstein 1

From Bloomberg this morning:

The world’s biggest bond traders say the Federal Reserve will decide before year-end to buy Treasuries in addition to purchasing $40 billion of mortgage bonds a month as gains in U.S. employment and consumer confidence prove unsustainable.

So the so-called “gains” are not real?  Thank you for the admission; the question now is when we’ll get some action out of certain people in Washington DC — and if we don’t, when we’ll get it out of the citizens of this nation.

Expectations for more stimulus come with the Fed’s Operation Twist, an exchange of $667 billion in short-term debt for longer-maturity securities to help contain borrowing costs, scheduled to end Dec. 31. When they announced the mortgage buying plan on Sept. 13, policy makers said they would keep pumping money into the economy until there was “ongoing, sustained improvement” in the labor market.

The problem with such a statement is that what they’re doing can’t work, as I’ve repeatedly documented.  Therefore such a statement is akin to saying that they’ll stick a gun in their mouth and pull the trigger as many times are are necessary until their IQ goes up 20 points, ignoring the fact that with the first pull their IQ will decrease by 100%.

Who has forgotten this from two years ago?

And who has forgotten — intentionally — the history of this jackass, who not only failed to predict the housing bubble’s impacthe stared into the maw of the oncoming train and told us that the light he saw was an impending dawn for the economy.

Doing the same thing over and over and expecting different results……. Einstein was right.


Einstein Insanity 1

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