Notes From Underground: Amazing Grace has appeared and it’s in Jackson Hole

A note from Jim's former partner Yra Harris shows how a Fed dependent on MOPE or spin to maintain the illusion of control and confidence is being trumped by the secular trends.

It's not so much that the Greenspan or the Bernanke put is dead but rather growing disconnect between reality (secular trends) and "Fed speak" is becoming too obvious. Simply put, the Fed must the secular trends, or they, like all investors, run the risk of being steamrolled by their own illusion. As a follower of the market, the Fed should do as little talking against the trend as possible. The game of MOPE or spin by definition precludes silence. Silence will always be interpreted adversely by those seeking reinforcement of the illusion.

The markets are reacting to a Wall Street Journal article by the new FED fair-haired minion, Jon Hilsenrath, and the great dissonance that took place at the last FOMC meeting. Our readers know that we have been very critical of the FED and its reliance on models that, on a good day, are so badly flawed.

Source: yrah53.wordpress.com