A–CLOWNS

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I do not usually use expletives when I write but calling the fed a–clowns is well-deserved. They know that their thoughts through their minutes are going to come out and will move markets. So…just when you think something is going to happen, we get this earlier this morning:

On TV this morning, Fed’s Bullard says ‘Fed has seen more encouraging data since the Fed meeting; says Fed is being vague on timing of possible stimulus; says if 2% growth resumes with lower unemployment, likely Fed will stay on Hold.

Says Fed is keeping all options open and economy has not recovered as much as the Fed would like to see. Says Fed determined to act if the economy deteriorates further; not clear if that action is needed right now. Says, should note that the latest FOMC minutes are a bit stale; says he is in the ‘late 2013 camp’ for raising rates.

The fed knows their minutes are coming out and know they will move markets…and now a fedhead comes out today and contradicts everything.  These people do not seem to give a crap that investors are making moves based on information at hand. The problem is that we have never seen so much information. We have never seen so much manipulation. We have never seen so much interference in the markets. These people refuse to shut up. They refuse to get out of the way. They refuse to let markets be free. Maybe I am just ranting but the outcome of all this cannot be good. After all, the fed is being led by a man who missed the whole financial/housing/lending debacle that was in part caused by his ridiculously easy monetary policy and how does he try and fix it? With even more ridiculously easy monetary policy. This is the same man that said sub-prime lending was good. This is the same man that said housing would be fine and would not affect the economy. Only when the economy and housing were already heading south in a big way, did he acknowledge it.

Everything the fed has ever done ended in bubbles and then crashes. They need to shut up. They need to get out of the way. They need to let markets be markets…or else! Markets ultimately, are not going to like this confusion.

Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.