Comments on: Rate hike odds continue to fall http://www.ritholtz.com/blog/2009/11/rate-hike-odds-continue-to-fall/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 20:54:41 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: quiddity http://www.ritholtz.com/blog/2009/11/rate-hike-odds-continue-to-fall/comment-page-1/#comment-233505 quiddity Tue, 10 Nov 2009 03:51:11 +0000 http://www.ritholtz.com/blog/2009/11/rate-hike-odds-continue-to-fall/#comment-233505 The Fed <a href="http://economistsview.typepad.com/economistsview/2009/11/not-all-bubbles-present-a-risk-to-the-economy.html" rel="nofollow"> is ready to roll:</a> "The second category of bubble, what I call the “pure irrational exuberance bubble”, is far less dangerous ... Because the second category of bubble does not present the same dangers ... as a credit boom bubble, the case for tightening monetary policy to restrain a pure irrational exuberance bubble is much weaker. ... But if bubbles are a possibility now, does it look like they are of the dangerous, credit boom variety? At least in the US and Europe, the answer is clearly no. Tightening monetary policy in the US or Europe to restrain a possible bubble makes no sense... At this critical juncture, the Fed must not take its eye off the ball by focusing on possible asset-price bubbles that are not of the dangerous, credit boom variety." So said Fed Governor Frederic Mishkin The Fed is ready to roll: “The second category of bubble, what I call the “pure irrational exuberance bubble”, is far less dangerous …

Because the second category of bubble does not present the same dangers … as a credit boom bubble, the case for tightening monetary policy to restrain a pure irrational exuberance bubble is much weaker. …

But if bubbles are a possibility now, does it look like they are of the dangerous, credit boom variety? At least in the US and Europe, the answer is clearly no.

Tightening monetary policy in the US or Europe to restrain a possible bubble makes no sense… At this critical juncture, the Fed must not take its eye off the ball by focusing on possible asset-price bubbles that are not of the dangerous, credit boom variety.”

So said Fed Governor Frederic Mishkin

]]> By: mitchn http://www.ritholtz.com/blog/2009/11/rate-hike-odds-continue-to-fall/comment-page-1/#comment-233473 mitchn Tue, 10 Nov 2009 01:15:44 +0000 http://www.ritholtz.com/blog/2009/11/rate-hike-odds-continue-to-fall/#comment-233473 Unfuckingbelievable. Unfuckingbelievable.

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