A Postmodern Tragedy In One Part: “The Fed Is Observing The Market And The Market Is Observing The Fed”

In Deutsche Bank’s weekly credit report, derivatives strategist Aleksander Kocic – who over the past year has demonstrated a flair for the post-modern essay style – has written the following fascinating brief tragedy (or rather, comedy) in one brief part, explaining all every Fed watcher needs to know.
Avoiding the perplexed gaze, by DB’s Aleksander Kocic
Anyone observed requires the presence of an observer who, if he is observed by the object of his observation, himself becomes an object of observation, a situation which has a destabilizing effect, for the original observer discovering that he has been observed by his object feels caught in the act and, since being caught in the act produces embarrassment, this usually leads to aggression.
For example, observing someone through a peephole at the moment when the observed person notices the eye on the other side of a peephole, and when the observer catches his gaze, he either breaks through the door or leaves, but the observation can no longer continue. For such circular observation to remain sustainable there has to be a symbolic pact between the observer and the observed subject that their gaze will never be caught. Only that is stable.

This post was published at Zero Hedge on Aug 21, 2016.