Tuesday, April 25, 2017


Boy, did I catch some stick after taking off on Stan Fisher.  Expected it but after the tirades I still think I'm right although it gave me some thought and set me off on a different perspective.

One commentator noted that Stan would probably agree with me but just couldn't say it.  Not good enough said I, he was very specific in what he said.

Ah, said the commentator, what Stan was really driving at was that the stress tests provided a useful tool for management to test their strategy against unknown factors.  Well, if that's the case said I we have a bunch of idiots running the big institutions which I don't think we do (not even excepting Wells Fargo who were just a bunch of criminals).  

But sayeth he, that may be the case but a reminder from time to time can't hurt.

Oh yes it can, because when Stan speaks, people listen and if we hold on to this nonsense people think all is well.  It's not because even the brightest out there don't get it:  it's not about process as is suggested Ina WSJ op-Ed today, it's about trust. Paul Volcker said it best: banks are different.  They represent faith in the state itself.  It is the state in the form of central banks that have to preserve that faith.  Forget about interest rate adjustments and full employment; job one is the preservation of the system.  That stinks, I know but that's the deal, folks.  Mr. Fisher understands that; he just misspoke.

On Sunday, France spoke.  At least for the first time.  Manny Macron and Marienne LePen are in a run off.  The markets have already determined that Manny will be the next M. Le President and everything in the past two days is through the roof.  The Euro is saved!  Europe is saved!  Trumpism is defeated!  Maybe.  The fact that Manny has never held an elected office, that he is a recently converted capitalist (formally a socialist), and that he's all over the place as to policies seems not to be concerns to the brightest among us.  Oh yeah, his wife was his high school teacher who, with three kids was messing with him at age 16 but it is France where tour jour L'amour always rules.  Over Here it gets you 10-25 but at least he ain't LePen and maybe that's a good thing.  Somehow, I don't have a good feeling about this.  Either way.  Then again, it's going to be great fun for the next couple of weeks and I suspect it's going to get really dirty.

Finally, breaking news as I write is that there is a tax reform play ready to be announced tomorrow.  Whew!  I just can't keep up!

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