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:


The Book that Beat the Fed

Richard Daughty

With so much crippling debt threatening to topple the US economy, it's a wonder people even get out of bed in the morning. That's why the Mogambo is snug and safe inside the silent and comforting Mogambo Big Boy Bunker (MBBB), where he's free to fully examine the US' economic mess. Read on...

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

A Quarter-Century’s Conclusion on Our Cancer Woes

Ray Blanco

Breakthrough technologies can hold the most undiscovered money-making potential. What we’ve accomplished in a quarter century with cancer research could make you serious money and save countless lives. Ray Blanco has more on this ground breaking story...


Give Your Book Away For Free, Make More Money

Chris Campbell

The publishing industry is on its head. These days, it makes more sense to make money before you write your book and give it away for free once you do. In today’s Laissez Faire Today, Chris Campbell shows you how to create a hit with those two counterintuitive steps. Read on…


How to Poke the Russian Bear in 3 Easy Steps

Greg Guenthner

Interested in buying the dip in Russian stocks this morning? Before you do, let’s try to knock some sense into that skull of yours. Late last week, I reminded you why we bid farewell to the big Russian bear back over the summer. At the time, Russia was one of the cheapest markets in the world. But cheap can always get even cheaper—and Russia is certainly no exception. With comic book supervillain Vlad Putin manning the controls from his secret Siberian lair, the Market Vectors Russia ETF (NYSE:RSX) has dropped a cold 20% since registering its late June highs. Does it have a shot at rebounding? Greg Guenthner explains…


Why Malpractice from the Fed Will Undermine Growth

Steve Forbes

The latest friend of ours to weigh in on the topic of the value of your money is Steve Forbes. As you’ve been reading this week, we paid a visit to Mr. Forbes recently, to discuss his latest book, Money. In this essay, you’ll find his thoughts on currency devaluation… it’s impact of economic growth and your investments…