No Surprise from the Federal Reserve--the lunatics are still running the asylum

The Federal Reserve run by our favorite bedlamite Ben Bernanke announced that they intend to kept rates at 0% for a long time. It is pretty simple for the Fed decision makers--follow the Taylor rule which says that rates should remain at 0% through at least 2012 thanks to excess slack in the economy and high unemployment. Who cares if savers get robbed and all of the profits flow to our virtuous banksters, after all its good for the economy.

This zero interest rate policy shows you how weak and vulnerable the Fed believes the economy really is (officially of course it is recovering). I also doubt the Fed will every sell there portfolio (bought with printed money) and is more likely to expand the program to prevent housing from double dipping.

But for now the markets like it.

Black Swan Insights