We were supposed to be in a panic selloff mode, right . The market plummeting instantly and the fed slowed down the bond buying . So many allegedly intelligent people have been yelling this from the rooftops for years and ive accepted it as conventional wisdom. Why did stocks rally beautifully on the news that the fed is starting to cut back on all of that bond buying . The dow soaring, and the nasdaq jumping 1. 15 , simple. The fed knew what it was doing. Because ben bernanke knows what hes doing. Because in this one case, the one rare case we have a part of the government smarter than the people who trade stocks and bonds for a living. We might have to endure endless attacks from ben bernanke and the president and the policies that hurt growth. We can digest the endless slagging of this outgoing fed chief for creating balloons and the disciplines that so many ideologues dogmatically think are right. However, in the end, though, and today is the end, the last meeting of the ben bernan
Airlines, what have you. Theres two things that happen. Once a commission interests itself in a particular area, puts a sign out that says open for business, which is basically what we did when we did the open Internet Order, right . What happens . Firms realize, oh, i dont get to make money looking at customers and making investments, i make money by going to the regulators and getting them to favor me and disfavor others. The phrase economists use for this is rent seeking. And thats what it does, it opens up rent seeking. For 30 years we never had any complaints about interconnection. Since 2010 weve had a number of complaints. Why . Open for business. The second thing that happens, and this is, i think, the most dangerous part of it, is even though the commissioners may say, well, we want to limit how much we regulate, okay . That wont happen. They will be under constant pressure to expand the regulatory writ. And weve seen this happen now. Level iii, for example, in 2010 said lets
Said a considerable period of time might be Something Like six months and what people wanted to know is a reflective discussion that the fed had, and it looks like not necessarily. Janet yellen gave a week or so ago what some people describe as the most dovish speech by a fed chair possibly ever. Right. So it took maybe a little bit longer for the message to get through to the markets. Well see how long this lasts, but its a pretty decent reaction to the stock market. And to your point she had already walked back in laying the framework for why the unemployment situation in this country is still weak, saying its still cyclical, saying the fed needs to do more until its healed more. Made the case. The minutes would seem to suggest more members wanted to make sure they didnt process jumping to any tightening before they were ready for it, before the economy was ready for it. Is this something to build on, the last couple of days or just a dead cat balance a momentarily blast of enjoyment
You can continue the conversation on twitter as well. You can send us an email as well. And are some of the stories how they are playing this week. Here is usa today. Fires andure of the california. 100 of the state of california is in danger of fire. The lead story is about the Net Neutrality vote at the fcc yesterday. Battle for the internet begins is the headline. They lead with Eric Shin Seki up on capitol hill. He is grilled over care. The New York Times leads with quiet unrestrkers in cities in east ukraine. Thousands of Steel Workers fanned out on thursday, establishing control over the program and militants who until recently had seemed to be consolidating their grip on power. By late thursday, minors and steelworkers had deployed and at least five cities, including the regional capital. They had not become the dominant force of that they were in the second largest city. The lead story in the New York Times. Wall street journal leads with Net Neutrality. Up tolls proposal sets
In this nation of ours we always believed and we believe in the American Dream that if you work hard and play by the rules you out to be able to do well that we live in an america where few work hard and play by the rules you will have mounting debt and stagnating wages. This is not the land of opportunity. This is growing to be the land of economic stagnation and being stuck and we believe in our country and we love our country in the thing we love about it is you can come here and make something of yourself and we are living in the days that no matter how hard you work thats getting more difficult every day. Aint that something to start a conversation about . Thats a conversation starter. [applause] we have to talk to the people out there. We have to talk to each other and we need to do it in a systematic way. We have got to do it in a fervent way. We have got to do it in a smart way and im telling you the wind is at our backs. You see the republicans the conservative side has a very