Thoughts re Jerome Powell

Well, he’s got a nice CV, but Powell isn’t a commercial or investment banker, PE guy, or a serious finance player in any sense. Yeah, he was at Dillon Read for a few years, but 15 years out of college and only a VP? Then he went to work for Nick Brady, duh, and everything financial was at base political. So rates went up again today; this guy was a horrible choice by Trump. Lou Dobbs suggested keeping Yellen and he was right. Cramer’s discussions with CEO’s confirm his personal view that the Fed should have stopped raising rates. Stephen Moore, same thing and even worse.

There’s no inflation, good but slowing global growth, and each Fed move kills the stock market. Does this make any sense at all? How and Why?

Look, to be honest, we’re probably in the top 1% of people who have studied many US financial dislocations, from long-ago oil crises, to the idiotic (and should-have-been-criminal) sub-prime mortgage scandal and crisis. Ah, yes, let’s go back to the August 4, 2007 Bear Stearns conference call. Look at how the subprime mortgage market exploded back then. It was a scam: egged on by politicians liking handouts, the banks could lend to unqualified borrowers, then package and sell the loans. (Lots of one-hand-washing-the-other, of course, and you can see some of that here.)

Of course this is hardly the first time we’ve had idiots running the Fed, government economic policy, etc. Before the sub-prime mess that led to the Lehman Brothers failure there had been much worse. Chief among them was The Folly at the Onset of the Great Depression, namely letting the small Bank of the United States fail in NYC in 1930.

Lest you think this was all about money, read this from TIME in 1930: “Another late arrival was lanky Owen D. Young who came about 11 p.m. in full dress, accompanied by Thomas William Lamont of J. P. Morgan & Co. Looking taller than usual in his full dress, Mr. Young paused to peer down at and converse with small, able Isidor Kresel, counsel for Bank of United States. Conservative Manhattan bankers last week were angry at Bernard K. Marcus, dark-haired, heavily-built president of Bank of United States.” Gee, what could they have meant?

One Response to “Thoughts re Jerome Powell”

  1. Bosun Says:

    Well HST was spot on when he said: “The only thing that’s new is the history you don’t know.” Of course in today’s world, due to the DUMBING DOWN there is most likely a diminished field of competent people to pick from. Evidenced by DJT’s pick of jeff sessions for AG.

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