The Fed Still Has On Its Beer Goggles

Coulda, shoulda, woulda. How different would the world we live in today be had the Federal Reserve shown restraint and practiced self-control in the current economic recovery? Where would the stock market be if Fed officials had not placated investors every time they threw a temper tantrum, demanding more stimulus?
We will, of course, never know the answers to these questions. But we can hope that the next generation of Fed leaders does have the wisdom and courage to push back against the market’s demands in favor of fostering long-term stability and economic growth.
Soon after ringing in 2014, a hilarious column by one of my closest friends, market analyst Peter Boockvar of the Lindsey Group, made me laugh out loud.
I forwarded ‘Beer Goggles’ to Dallas Federal Reserve president Richard Fisher, who loved it when I shot great metaphors his way.
Not long afterwards, Fisher quoted Boockvar, giving what would become his most famous speech: ‘QE puts beer goggles on investors by creating a line of sight where everything looks good.’

This post was published at Zero Hedge on Apr 19, 2017.