The FT's John Plender summarizes in a sentence something that a lot of investors probably find frustrating: "Asset prices, whether of equities, bonds or alternative investments such as commodities, go up and down in lockstep in a Pavlovian response to central bankers tweaking the monetary tap."
The Wall Street Journal editorializes, "The danger is that our politicians keep hoping the Fed will save the day when they should be removing the barriers to growth that Washington keeps piling on," following up a point the paper made more extensively yesterday. (Thanks to reader-participant-community member-watchdog-content co-creator B. for sending.)
I actually think that eventually, either after some elections or in reaction to the threat of them, Washington will improve its policies to a level where they are good enough not to overwhelm private sector growth. But that's going to take some time. It's going to be interesting to see whether in the interim anger directed at the Fed builds to the level of the anger or frustration or disappointment directed toward the politicians in Washington, and, if so, how it plays out.
