In a WSJ piece posted today by the FED‘s media darling Jon Hilsenrath–the leak source of choice–wrote an article criticizing the FED and its reliance on flawed models. Readers of Notes From Underground are well aware that the whole purpose of this blog is to challenge the absoluteness of quantitative models when it comes to global macro trading. The release of Hilsenrath piece just sheds light on a very common theme of mine. The bigger story will be is that the FED‘s new communication policy has placed Janet Yellen as the point person for the most important FED information and the reliance on any FED anointed journalist seems to have come to an end. If the market comes to challenge the FED‘s models, the volatility in 2013 will increase dramatically. Happy New Year and we have much to digest going forward. Also, in conjunction with the Hilsenrath article, here’s a link to the December 13 note.
Tags: Fed, Janet Yellen, Jon Hilsenrath, Wall Street Journal
December 31, 2012 at 4:48 pm |
Have a Happy, Heathy, and Prosperous New Year. Thank you for all of the insights and analysis this past year.
Kevin
December 31, 2012 at 5:56 pm |
Happy New Year. Mr Harris thank you so much for all your hard work gathering information from deep UNDERGROUND and bringing it here to NOTES.
December 31, 2012 at 6:59 pm |
Kevin Waspi–thank you professor and nice post on the Bill Gross piece.Silverbug, thank you for the nice words and let’s hope for a healthy and prosperous year in analyzing the markets.
January 1, 2013 at 6:22 am |
Happy New Year, Yra, still have to mow the grass though!
January 1, 2013 at 4:21 pm |
Happy New Year, Yra! I really appreciate your insight and mumbo-jumbo-free missives. Good health to you and your family in 2013.
January 2, 2013 at 6:20 am |
Barb Relic–you are neither barbarous nor a relic—thanks for your support.
January 2, 2013 at 2:40 pm |
Government debt… How much is too much? from Chicago http://www.economist.com/blogs/freeexchange/2013/01/government-debt
All best
January 3, 2013 at 7:27 am |
Arthur—good post but the article fails to discuss the SOMA’s impact on the credit market— as the FED’s holdings increase the entire theory is corrupted
January 3, 2013 at 1:08 pm |
Thank you for your input. Learning by doing.