NEWSMAX: …[Former FDIC Chairman William Isaac]thinks the Fed should keep tapering its [Quantitative Easing], but not announce it to the public. “Just let the markets start to operate as they always have for years, make them guess about what Fed policy is rather than feeding the markets whatever they want to hear.”
The Fed’s monetary policy is “way too transparent,” Issacs said. “Markets operate best when different people make different bets based upon different judgments about what’s going to happen.” It’s not a free market now because the Fed is announcing everything that it’s doing, he says.
“It is a Fed-dominated market, and it’s responding to the Fed’s words and actions instead of to economic activity,” Isaac said. “That’s why the stock market scares me. I don’t know if it’s properly valued or not, and I don’t know if gold is properly valued or not, because the Fed is so dominating these markets.” … (more)
EDITOR: Isaac may be correct for future FDIC policy. But the FDIC was forced into quantitative easing because of Republican refusal to provide fiscal stimulus over the past five years. They preferred having people out of work on unemployment compensation and food stamps over putting them back to work and having them pay taxes.
