Thursday, February 4, 2010

The Fed's Exit Strategy

Good post in the Wall Street Journal this AM from Andy Kessler. For those who are convinced that the Fed's current policies will inevitably lead to higher inflation, weaker dollar, etc., this is certainly worth a read.

Here's an excerpt; full link follows:

Mr. Bernanke will leave the money out there but restrict banks' ability to create more out of thin air. He'll be called crazy. Crazy like a fox.

The Fed has a once-in-a-millennium opportunity to do away with banking panics. Investors will rejoice, but Wall Street firms are not going to like it one bit.