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

Addison Wiggin
When Genius Fails Again, Part III

Addison Wiggin

Addison Wiggin gives even more reasons why genius will fail again in part III of his series on Jim Rickards and the collapse of the financial market house of cards...


Beginning to Taste the Fountain of Youth

Stephen Petranek

It is well known that the longer you live, the more likely you are to develop heart disease, stroke, osteoporosis and Alzheimer’s, to list only a few. But research out of the Salk Institute may be the clearest, most direct leap in understanding aging in the history of medical research and opens extraordinary possibilities for slowing down or even halting the aging process in humans. Stephen Petranek has more…


How to Profit from the Death of a Chicken Empire

Greg Guenthner

American's tastes are evolving. McDonalds is out. Shake Shack and Chipotle are in. Consumers are willing to pay a premium price for better food. And investors are willing to pay a premium for better fast food's stock. It's that simple.


Stalking a “Sneaky Breakout” — Here’s What to Do Now

Greg Guenthner

It's easy to lose your discipline when you've been waiting around all day with a rod in your hand and you finally get a slight tug on the line. Is it "the big one"...or a minnow? Many traders feel they're onto something big. And their aggressiveness can get them into trouble.