Friday, April 29, 2011

Who's The Fed Helping?

Ron Paul's dream of nuking the Fed (the Federal Reserve Bank) will happen a lot sooner if people read this from Yardeni:

“The Fed is still your friend if you are invested in cyclical stocks , commodities, and foreign currencies. ...

On the other hand....

...If you eat food and run your car on gasoline, the Fed will continue to hurt you. If you are looking for a job, you may be wondering why it is still so hard to find ond despite all the money the Fed has spent so far on QE2.0. If you are retired and living on interest from your CDs, then you are getting really squeezed between rising food and fuel prices and the Fed’s zero interest rate policy. In other words, the Fed seems to be doing everything to widen the gap between the Haves and Have Nots than to lower unemployment and boost economic growth, which remains “moderate” according to yesterday’s FOMC statement.”

Umnnhhh....Yardeni wouldn't be the first one to notice that Fed policy--explicitly assisting banks, both TBTF and others--is not good for other human beings.

HT: Ritholtz

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