Bob Heller: Wrong, Wrong, Wrong

Bob Heller, a former Fed official, just popped on Bloomberg and stated that the Fed messed up the economy, get this, by raising interest rates too high and wrecking the housing market. I try not to get too belligerent when pointing out these foolish pundits but this guy must be an ABSOLUTE IDIOT.

Remember, this guy is a former Fed official and had access to the inner sanctum. These are the people in charge. God help us.

2 Responses to “Bob Heller: Wrong, Wrong, Wrong”

  1. Europa Says:

    Looks to me like QID for short term moves down, and Agriculture (like Jim Rogers new RJA) are the best plays for this stage of the recession. At some point the financials will rocket up, but we have a long & bloody ways to go before then (a few big banks need to go belly-up first). Thoughts?

  2. Davy Bui Says:

    Your game plan sounds better to me than what’s currently hot: buying retailers and financials.

    I’m kind of a wuss so shorting makes me squeamish. It also seems that with short interest so high now and the bearish case so well-publicisized, the risk-reward ratio of QID may not be as attractive. But you’re talking short-term trading so it’s probably a good play.

    What about instead of shorting, using the yen as a hedge against equity downside? I had pondered this at the beginning of the year but was not happy with the terms offered by Everbank and haven’t moved my account to Interactive Brokers yet.

    I’m long RJA so that sounds good to me. I can’t bring myself to average up so I’m hoping for some pullback from record grain prices.

    I do agree that the collateral damage in the financials has been rather tame compared to the magnitude of the problem. I’m still waiting for a homebuilder or 3 to go bankrupt. I would expect more bail-out consolidation in the banking sector, a la BAC and CFC, eventually.

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