Courtesy of Mish
In response to BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?" a number of people commented the Fed cannot be so stupid as to think there is no asset bubble. Here are some examples:
- Gordon says "The Fed is not stupid and yet many think they are. They know there is a bubble but what good will it do if they announce it and the bubble bursts?"
- JFHogan says "Nobody could be stupid enough to believe that money printing will create wealth."
- R2bzjudge says "If I can understand there is an asset bubble, so can the Fed.
- Ax123man says "There is no way on earth Paul Krugman could actually believe (deep down) the things he says publicly"
As a huge fan of Occam's Razor, I disagree with all of them. Occam's Razor says the simplest explanation (the one with the fewest assumptions) is likely the best.
Alternatives
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