Thursday, May 21, 2009
US Fed themselves does not know about US
Blame it on large institutions investors and US politics. It seems these large players have accumulated enough stocks and profits in recent run. And that is why US Fed has again changed its statment i.e. US Fed predicts deeper recession. GDP is not a function of what Fed tells daily. The problem was still there. I guess Fed isa puppet of large players and does not have its own estimate. How can you tell the lady that she cannot concieve last week and this week she gives birth to a baby. It does not take even 2 week to change FEd view. And the global players follow Fed directions as bible. US is still a troubled economy and it continues to be. Nothing changed case schiller index does not predict any near term recovery. GM bankruptcy ruins the economy further.
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