Remember when ZIRP seemed excessive? Now NIRP is becoming normal. What's next? NIRP on customer deposits? Then helicopter money drops to citizens? How long until the Fed backtracks on the rate rise plan and starts more QE? We're going from the bizarre into the Twilight Zone.

Bizarre indeed.  Now there are entire camps of folks who admonish the Fed for having raised rates, as if the Fed should help the markets and economy at every twitch.  It is crazy to expect the Fed to be sheperding the economy at every turn and not create distortions.  And these are folks who aren't dumb at all, apparently their agendas are far more important than the anything else.

The mandate that they have has worked for ages, why should the Fed be involved in everything??

Or am I missing something?

lt cap,

At the risk of sounding or hinting at racism, class-ism, and so on, the cheer Wallstreet shows at bad numbers could be seen as what happens when people (or corporations, or anyone) gets 'on the dole', a culture grows up around it. Conservatives howl at the 'welfare moms' who get pregnant early, have no means of support, and so get govt. $ in support, and food stamps, and this becomes a 'lifestyle' that is a viable way to live. Clinton, of all people, upset that apple cart to some degree by instituting reform - you needed job training and actively searching for employment within 2 years, or you'd be kicked off the rolls. Don't know how well that worked in the long run, but it was a courageous attempt to turn 'wellfare' into 'workfare'.

The conservatives are certainly hypocritical in labasting welfare while corporate welfare is called into question. It's been 8 years in the making, and really more than that in terms of the Fed inacting fiscal policy with a questionable mandate. The only important part being that it seems to me the same pattern as welfare: Corporations, and the rich, have become 'addicted' to the government ensuring their profitability or protecting and enhancing their wealth, rather than the idea that they must actually 'earn' this. America has always been pretty much a culture of 'entitlement', and the rich howling at having to 'work' for a 'living' being only one of the uglier manifesations of this. 

Still, how very strange that the institution of the Fed has become the guarantor of prosperity (for some), given that some time ago the Fed didn't exist at all. No one elected these people. And with the institution of Yellen, she seems mostly to dance to the tune of the rich. She reminds me of Ronald McDonald - would you like fries with that?

True post.

Your McDonalds comment reminded me of this excellent clip from The Wire Season 1, where the low level street sellers are discussing the financial aspects of chicken nuggets.

youtube.com/wa...EWjxZc