Wednesday, July 15, 2009

Fed on a leash

Zero Hedge calls attention to the Federal Reserve's latest oxymoronic press release.

The Fed Sees Increasing Unemployment As A Positive For GDP

The economic mavens in DC have totally lost it. Now an increase in unemployment will allegedly lead to a rebound in GDP??? Is anybody besides Dick Bove drinking this kool aid any more?

For those wondering, Dick Bove is the rocket-scientist banking analyst who was last seen hawking bank stocks in March of 2008.

[Bove] argues that the media is fomenting hysteria about the situation in the banking industry, which in reality remains quite sound... bank stocks in general should be bought.

It's unclear where Bove is employed these days, but one suspects The New York Times may have engaged his services.

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