I love watching CNBC in the morning. Not just because I am a nerdy finance guy, but because I love the way the morning hosts can spin puns and make any story sound sexual (the term "market bottom" has been overused here).
This morning's discussion was about the Fed and their latest moves in the whack-a-mole game which is the government response to the current crisis. Specifically, the guest host suggested that the Fed is playing the role of the blushing virgin - not putting enough out there for the ravenous marketplace.
This after the Fed has already more than doubled its balance sheet to over $2 Trillion through various liquidity programs. Seeing the success of the latest move - the $500 Billion injection directly into mortgage markets (a success, see last week's post), some want the Fed to triple down on this play - to "lay down and give it up" to follow the virgin analogy.
I say cool it guys. Let's take a break from this drunken-sailor spending and let the markets digest the current offerings. Rates have moved down to five-year lows, Holiday spending appears to be healthy, and the new year will bring a new stimulus package from the new administration. I say, Fed: keep your legs crossed for a few more weeks and let the market be just a little bit giddy.
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