More Risk Appetite for Fiscal Gluttons
This week, between Christmas and New Years, is always slow. Traders have mostly taken the week off. The Dow was down a little yesterday. Gold was up a little. Nothing to get excited about.
Here’s a guy who should have taken off too. Bloomberg reports:
“QE2 has had unforeseen benefits in raising risk appetites and improving confidence across the board,” said Mark MacQueen, a partner at Austin, Texas-based Sage Advisory Services, which oversees $9.5 billion.
What? Unforeseen benefits? Those are exactly the flimflam benefits the Fed promised. Put more money in the system; hope it causes “animal spirits” to pick up.
How do increased “risk appetites” really help anything? The US economy gorged itself on risk during the bubble years. The Fed should be helping it stay on a diet; not waving chocolate éclairs in front of the slob’s nose.
But we’re already beginning to apply our New Year’s Resolution for 2011. We’re going to improve ourself. We’re not going to be so critical.
Yeah…more risk appetite. Sure. Why not? Just what we need, right? We need speculators to make bigger bets. We need homeowners to take chances again – buy a new house…flip one or two of them… Who knows; maybe they’ll go up. And we need consumers to buy things they don’t need with money they don’t have.
Yeah…that’s just what we need – more credit-fueled risk-taking. Thanks for bringing that to our attention, Mr. MacQueen.