The Fed is creating not just uncertainty but appears to be destroying any credibility it ever had along the way. This morning’s spewing Fedspeak from Bill Dudley was full of unbelievable and explicit lies.
First he uttered the following.
- *DUDLEY: HIGH YLD MKT RELATIVELY ORDERLY, REFLECTS GLOB ECON QUESTION
Does this look “orderly” to you?
Then he stated confidently that
- DUDLEY: HASN’T BEEN A SHORTAGE OF TREASURIES IN MARKETPLACE
- TBAC: THERE IS A SHORTAGE OF TREASURIES IN MARKETPLACE
Then finally he said this…
- DUDLEY: ALGOS NOW BECOME ‘ARMS RACE’ TO DEVELOP BETTER MODELS.
But, pelase, let’s ignore that and do nothing to stop it – the conclusion will be entertaining. We assume he mentions this to make sure he “warned” the public about HFTs when the next crash comes.
Perhaps, the only time in his speech Dudley did not lie, was the following:
- DUDLEY: FED QE MAY HAVE AFFECTED RECENT MEASURES OF LIQUIDITY
Yes, thank you Bill, that will be all.