Friday, April 21, 2017


By me.  Not unusual mind you but this is a doozy.  Ready for it?  OK.  Stanley Fisher was interviewed today on CNBC by America's newest financial heart throb, Sarah Eisen. Did a good Job.  Stan was all smiles. Gave her a a beaut when questioned about Dodd/Frank.  Said the most important thing with which one shouldn't mess was the Living Will.  Wrong, Stan, very wrong.

Now to call Stanley Fisher wrong is generally unwise; for me to do it is downright dumb.  Not in that league but Stan is wrong, wrong, wrong and because when Stanley Fisher speaks people listen I think it's important for the dissenting view--even from the peanut gallery-- to be heard.  Stan, if J.P. Morgan fails, thee is no living will devised by mere mortals that will make a damn bit of difference, so let's stop kidding ourselves.  Five seconds after the event it will be every man for himself--the hell with the women and children--and the only thing that stops it is the Fed...that's you Stan...telling everybody that they are covered.  Sorry, but that's the real world inhabited by real people who get scared and act out of pure self-preservation. Unfortunately, there are too many recent examples of expectations based on long-held beliefs and even laws being dashed.  I give you the bond holders of General Motors who are still trying to figure out what happened (me too).  A living will?  Surely you jest.

So there you are Stan, you might want to rethink this.  If you need any help you know how to get in touch.  Always glad to lend a hand to the smartest guy in the room.

Round one of the French elections is on Sunday in the shadow of the awful terrorist act of Wednesday.  The importance of the ultimate  result cannot be overstated.  Sunday's results may provide a clue to the final event.  For the fate of the EU it will be a very long day.

Finally, to close with a bit of wisdom, the Venezuelan situation is considerably more troublesome than the disaster portrayed on television.  A few weeks ago Venezuelan military units crossed the Colombian border and occupied a border station for a number of days.  Colombia wisely did not react    and the Zulus withdrew.   Start a war?  Sure, why not?  What do you have to lose and besides it gets everybody refocused.  This could get truly awful.

Back next week

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