Misguided Government “Experts”

An idea of just how unsure and inexpert the “experts” can be: The Federal Reserve Bank is still on its path of buying $600 billion of government bonds. This inflates the economy by, in effect, printing fresh currency. The Fed intention is to rouse the economy

But at the same time, the Fed is allowing some big banks to raise their dividends, which soaks up capital and their lendable funds. The Fed, after all, wants to rouse the unemployment problem.

While some banks, instead, use excess cash to buy up shares. All this adds to a mix which makes the Fed’s actions very imprecise, to go along with the rest of their their seat-of-the-pants decisions.