Dallas Fed's Fisher: "We Own A Significant Slice Of Critical Markets. This Is ...A Gordian Knot"

Zerohedge ^ | 08/05/2013 | Tyler Durden

[Rusty0604]

This later program is referred to as quantitative easing, or QE, by the public and as large-scale asset purchases, or LSAPs, internally at the Fed. The result is that our balance sheet has ballooned to more than $3.5 trillion. That’s $3.5 trillion, or $11,300 for every man, woman and child residing in the United States.

Horseshift! We needn’t be condemned to the glue factory. As I said, American companies publicly held and private—large, medium and small—have taken advantage of the cheap and abundant money made available by the Fed’s hyper-accommodative monetary policy to create lean and muscular balance sheets. In response to the deep recession and the challenges of fiscal and regulatory uncertainty, they have rationalized their cost structures and ramped up productivity, leveraging IT, just-in-time inventory management and new production structures to the max. I believe American businesses today are, far and away, the most efficient operators in the world. We have countless businesses in every sector of goods and service production that are the equivalents of the Secretariats, Man o’ Wars, Citations, Seabiscuits or any great thoroughbred that has ever graced the track. They just need to be let out of the starting gate.

That gate is controlled by Congress, working with the president. If they would just let 'em rip, we would have an economy that would soar. We would experience what, tongue firmly but confidently in cheek, I would call “horseshift”: from being the stuff of an economic glue factory to becoming the wonder-horse that would outpace the rest of the world, putting the American people back to work and renewing the wonder of American prosperity. If you and your fellow citizens from whatever state you hail from insist upon it, it will be done.

[colorado tanker]

That gate is controlled by Congress, working with the president. If they would just let 'em rip, we would have an economy that would soar

Never happen. Barry and the Dems will never relent in their war against the economy, the centerpiece of which is Obamacare. The EPA is not far behind and will soon ban electrical power from coal.

[DManA]

That gate is controlled by Congress, working with the president

Absolutely true. And for multiple twisted and perverted reasons they are determined to keep the gate closed.

[DannyTN]

This article is like a doctor telling a patient that he can be cured if he takes his medicine and then doesn't prescribe anything.

The article is right that the FED easy money has kept the economy from imploding. But it claims American companies are being held back by a gate controlled by Congress and the President and it never explains what that gate is. It doesn't identify a single policy change that needs to occur.

They need to raise import tariffs. That would put Americans back to work.

[Rusty0604]

The speech was about monetary policy but at least he acknowledged the fact that the Fed can only do so much for the economy and unemployment without cooperation from lawmakers.

[Wyatt's Torch]

That gate is controlled by Congress, working with the president. If they would just let 'em rip, we would have an economy that would soar.

Key line. Economic growth is being massively constrained by the hyper-regulatory, anti-growth policies of this administration and an inept Congress.