Ben will be missed. But, it's a few months until he goes, so he'll still have the ability to sway matters.
Our prime concern is that he so willingly slapped the savers (from silly onward) in his effort to bolster those things that are called markets but, in reality, are chimerical game settings (or, if you would, ca-pital-sino). It took awhile, but about a year ago, things finally inflated to where new heights were seen almost daily. Yes, the grand old illusion came back.
How could this be called an illusion? Well, go talk to Main streeters, for instance. But, that's a punt. Talk to people, like myself. I'm as trained as Ben albeit I focused my energies on different problem sets. Given that I'm not in academia is not a bad mark, from where I sit. Actually, I'm allowed more freedom of thought than any of those institutionalized minds.
So, to answer the question: how is this all an illusion? There are several ways to characterize the thing. Firstly, I don't hear people talking near-zero (perhaps, we'll get this with Janet once she spreads her wings). You see, folks, those who have been enriched (always) get their takings off the backs of others (not arguing Marxism, but just go around and talk to folks doing the real work - let me be a guide - I'm eminently qualified to do so when you consider the wide range of jobs that I've had and environments within which I worked - to wit, Bachelors and Masters when in my 30s (prior to that, many, many jobs) after which I sampled life with the egg heads). Secondly, there have been trappings put upon the "market" such that it is far removed from being effective. How is this? Crap, abstraction-philos have had their way. Why? Money, power, ... From where I sit, I can show the shaky basis, the fact of which is too hard to see when you're playing with the jerks - which the Fed does, by the way -- all sorts of trappings of the rich (don't get hung up in the mahogany, Janet).
Aside: There's this thing called the C-suite where like knows like. Hah! I've seen members; too, I've seen those who got there as they progressed through the hoops (working since I was a kid and I'm 71).
Thirdly, carrying on from earlier, those things that the egg heads (though, endowments need to be re-considered in a newer set of lights and measures) think of have been enabled (fostered) by computational progress (by real engineering, by the way). Unfortunately, the lack of a sandbox is more than problematic. What we have is analogous to a plane loaded with people being experimented on in real-time while in the air.
Aside: A 737 went into the drink from just that type of thing where the ground crew was having the pilot run through some tests that made things worse when they ought to have landed while there was sufficient control. Those in the know will recall this incident.
Fourthly, along with the thinking and the computational resource improvements, there is a belief in mathematics that is unwarranted'ly held. How did this come about? Application focus, essentially, and an inordinate reliance on regression to the mean. Oh, we can go on about this at length, after we get some agreement about how not to use operationalist'ic urging (or, how to be more mature while succumbing to the sirens of money/wealth/greed/, et al.
Fifthly, ..., let's quit this for awhile.
We have to let Janet find her sea-legs, get her bearings, and any other number of types of things that a new person ought to be honeymooned for when starting a new venture. That is easy enough.
The focus here could be back to the Cosmology series. Too, we'll propose and discuss things not done.
- Why did Ben have to break 1%? There is no place where those who need a small income can go. No, he actually is drawing from these folks in order to lay flowers in the path of the idiotic fat cats (who, by the way, got the crap to hit the fan -- sheesh, Ben).
- Given the dire straits into which Ben has forced the saver (note, please, that the loss did not come about for these types until there was an accumulative negative payout due to declining rates over the past few years) to go toward risk (as if someone will bail these people out for following the idiots) as that becomes the only choice (only those who cannot hold on for the longer term while awaiting for the economic brains to wise up). At any point along that route we've been on since 2008, Ben could have awakened to the reality of the set of people that he's tortured, willingly.
- Tapering? The sillies got all anxious. Ben has been of so accommodating the past few years. For what? Yes, the fat cats love it. But, most are being taken to the cleaners. One example would be those who are leaving the job market due to its warped nature nowadays.
In 2009, we posted A New Day, twice (Truth Engineering, 7oops7) plus More on New Day. We will have to take a re-look at the years since then. Many things, that could have been, did not come to be (we could have nationalized the stupid banks - the mess would not be any worse than it is now, folks). Jobs programs, training (several things here were not done).
Janet's advent, "hope"fully, will be as expectant as then. How many months for a honeymoon?
... mostly complete, except for editing, and links ...
10/26/2013 -- Ben has sacked the savers for years now, slapping them silly. Why? A WSJ article looked at high-class pawnshops a couple of days ago. These fill the need for people who need money but cannot get it from the banks (stupidity there, too). So, they use collateral for a loan and pay high interest. How high? Some pay over 200%, per year. What is Ben paying or having banks pay their savers (customers)? Way less than 1%. That is the best example of being out of whack with economic realities that one could ask for. Yet, does the Fed see? Why is the interest low? To push savers toward higher risk? To appease the gaming crowd (most likely this, as these are big-pocketed folks)? To help people afford housing (on someone else's back?)? ... Janet's take on this is unknown, but she has to know that they're looking like idiots. You know what? Most of those loans are paid, even with the high interest. And, still, Ben slaps the savers (King Alan mentioned saving, of late). We ought to ask the Fed, what happened to prudence?