Tuesday, August 25, 2015


Moral: Wherein we look at the mess of the Fed.

On Quora, there was some debate about whether one could use an in-the-large characterization for undecidability, namely the halting problem of Turing. In essence, sure it can be used; even though the problem has to do with whether we can know if a program will find an answer (okay, every man's view?), it does apply to the larger picture.

What gets me is that theoretic views (logic, computer science, etc.) know about this problem. But, you get cowboys (business people, financial wannabes, and such), like Ben, making decisions and changes on the fly to something that is very much driven by computers or which has a very large component that is computationally bound. These best-and-brightest types are just digging a bigger and bigger hole for all of us.

We talked, here, about unwinding a long time ago. He and she are several years late.

So, the halting problem as far as the Fed goes is this: Will Janet halt the flaying of the savers? There is a lot to talk about, but some views of late are encouraging.


First, this WSJ op-ed is right on: A Fine Fed Mess.

Then, Fiscal Times had a little article. Essentially, the headline said: The Troubling Truth Revealed by the Stock Market’s Nosedive. We find this chart provided by Alberto Gallo.

Ah, see the halting problem?

If Ben had done the deed at the time of the taper tantrum, we could have been better off. But, alas, no, he did not. Now, he sees some need to go negative on interest. Let's hope that Janet is not listening to such a siren call (perhaps, she's immune). 

Remarks:  Modified: 09/13/2015

08/25/2015 --

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