In his latest post on Zero Hedge, Carrington Holding Company Executive Vice President and Managing Director Chris Whalen dug into the release of the Federal Open Market Committee meeting minutes, explaining just how in touch or out of touch the Fed was with the market.
While it is pretty clear that the members of the FOMC eventually did the right thing five years ago in terms of reducing the cost of credit, the reasons behind the change in policy are less clear.
Five years ago, most of the Fed’s policy making body did not have a clue about the significance of what was happening in real markets and they still don’t. Just read the parts about Fed governors fretting about saving Lehman Brothers, a firm that could not be sold or saved.
