Jason Farrell

Taper now! Taper with all you’ve got!

This is the message — more or less — from former Federal Reserve chairman Alan Greenspan in an interview today with CNBC.

“The sooner we come to grips with this excessive level of assets on the balance sheet of the Federal Reserve — that everybody agrees is excessive — the better… There is a general presumption that we can wait indefinitely and make judgments on when we’re going to move. I’m not sure the market will allow us to do that.”

Finally, some clarity! Even the “Maestro” of the dot-com bubble has seen the light. Could Bernanke be far behind?

“I’m a little concerned that the reversal procedure is going to be a little more difficult than we think,” Greenspan said, musing on recent market responses to Fed officials teasing the end of QEternity. “If you get this much of a response from this small an action, then the markets are going to determine… what type of reactions we’re bound to get.”

OK. Maybe his language isn’t as strong as we would like to hear, but still encouraging.

His sentiment was echoed in more forceful terms by Richard Fisher, president of the Federal Reserve Bank of Dallas.

“We cannot live in fear that gee whiz, the market is going to be unhappy that we are not giving them more monetary cocaine,” he told CNBC. Fisher also believes the dreaded “taper” — feared by easy-money junkies around the world, as we reported yesterday — should begin immediately. Alas, he’s not on the FOMC this year.

If only those who actually make the decisions were so confident.

Jason Farrell

For The Daily Reckoning

P.S. If you haven’t signed up for The Daily Reckoning email edition… what are you waiting for? It takes only a minute and is completely free. Click here now to sign up today.

You May Also Like:


Volcker: Credibility Must Not Be Frittered Away

Jason Farrell

Volcker’s lesson for the Fed: “Credibility is an enormous asset. Once earned, it must not be frittered away.”

Jason Farrell

Jason M. Farrell is a writer based in Washington D.C. and Baltimore, MD. Before joining Agora Financial in 2012 he was a research fellow at the Center for Competitive Politics, where his work was cited by the New York Post, Albany Times Union and the New York State Senate. He has been published at United Liberty, The Federalist, The Daily Caller and LewRockwell.com among many other blogs and news sites.

Recent Articles

Extra!
6 Reasons You’ll Love Being a Late-Stage Investor

Matthew Milner

When investing in a private company, there are two kinds of investors: early-stage and later-stage. And while early-stage investors have more upside potential, they're also exposed to far more risk. Today, Matthew Milner explains how you can be a successful later-stage investor, and still make great gains, with much less risk. Read on...


Video
How to Predict an Economic Collapse

Kate Incontrera

In his recently released book, A Viennese Waltz Down Wall Street, Mark Skousen gives the Austrian School's take on what triggered the 2008 financial crisis - and why you should be wary of the artificial boom that's driving the recovery.


Laissez Faire
Why Heartbleed Will Change the Internet as You Know It

Mike Leahy

The Heartbleed bug is a massive security flaw that could put you and your personal information at risk. And while there are things you can do to limit the damage, you haven't yet seen the ramifications of this security disaster. The Internet in the post-Heartbleed world won't look like anything you've seen before. Mike Leahy explains...


Big Opportunity in the “Baby Bakken” Oil Field

Matt Insley

As the U.S. "shale gale" nears its 10th birthday, it appears the America energy renaissance has outlived its critics. Still, it's natural to wonder whether all the big gains are behind us. Today, Matt Insley reveals the newest shale hotspot, and explains why there's still plenty of opportunity left in the U.S. energy boom. Read on...


Maestro
The Real Reason the US Media Hates Vladimir Putin

Marc Faber

The U.S., Russia, the EU and Ukraine all met in Geneva, where all sides agreed to halt all violence and provocations in Ukraine. But the news media are still taking an antagonistic stance toward Vladimir Putin and Russia. What gives? Today, Marc Faber explains the hypocrisy behind U.S. foreign policy... and the BS the news media are pushing about it...