Magical thinking from the Fed

Pixie dust from the Fed will surely make the untrue appear real
Pixie dust from the Fed will surely make the untrue appear real

In light of all this, the Fed’s decision to brag publicly about a few loans that are actually performing is sort of scary — it speaks to a level of intellectual desperation and magical-thinking unusual even for a banker in the subprime/MBS era. Don’t be surprised if you hear more of this sort of thing in the coming years.

Our financial markets now obviously gamed and openly manipulated. The Fed is clearly considerably less than honest and open.

And they’re so insulated and used to living in their protective bubbles that they don’t even see the ever-growing populist upsurge coming.

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