Elliott Wave InternationalmyEWISocioniomics.Net
Home > Stocks

When the Fed Stops Speaking With One Voice -- It's Time to Listen
Why Have Four Fed Regional Presidents Mutinied?

By Robert Folsom
Mon, 18 Jul 2011 18:00:00 ET
Add to Facebook Add to Twitter Email to a friend Printer Friendly

When Ben Bernanke became Fed Chairman in 2006, he knew that books about his predecessor had published with titles like Maestro. He read quotes like these from columnists and major news outlets:
 
"If we had been lucky enough to have Alan Greenspan at the Fed in the fall of 1929, there might well have been no Great Depression." (New York Times, Jan. 2006)
 
"For 18 years as chairman of the Fed, financial markets hung on his every word, and in both major policy pronouncements and brief utterances, Greenspan could literally move markets." (ABC News, Sept. 2007)
 
Hence it only stands to reason that, with so much love out there for the Fed, Bernanke concluded that more "transparency" from the central bank would be a good policy. And he did proceed to speak more frequently in public.
 
What the new Fed chairman did not expect was for the wheels to come off the economy and the stock market to lose more than half its value.
 
The only thing Bernanke may have expected even less was loud, public dissent about his policies from no few than four regional Federal Reserve Bank presidents. This mutiny has erupted in just the past year -- the president of the Dallas Fed openly criticized Bernanke's QE2 policy as the "wrong medicine."
 
The obvious question is "Why," though the answer may not be as obvious as it seems. Yes, the bad economy plays a role -- but the full answer transcends the Federal Reserve and the economy itself.
 
Here's a preview of that answer, from Bob Prechter's just-published Elliott Wave Theorist:
 
What the new Fed chairman did not expect was for the wheels to come off the economy and the stock market to lose more than half its value. The only thing Bernanke may have expected even less was loud, public dissent about his policies from no few than four regional Federal Reserve Bank presidents. This mutiny has erupted in just the past year...
"This issue will list some the ways that humans are beginning to wage war on credit, even as the mechanists are doing everything they can to defend it. The trends and events discussed below are widely known, but almost no one seems to connect them..."
 
The Theorist can be on your screen in moments. Learn more about your risk-free offer below.

 * * * * * * * * * *

The Elliott Wave Financial Forecast and Prechter's Elliott Wave Theorist are must-read publications for every independent investor.

 

Each issue gives you thought-provoking analysis and forecasts for the U.S. financial markets and economy, plus timely insights into investor psychology that you can't find anywhere else. They empower you to take control of your investments and anticipate the larger trends that most investors don’t recognize until it’s too late.

 

Subscribe now to both publications and get the 5 latest issues risk-free for just $29. That's a savings of 26% every month of your subscription.

 

You'll Get These Financial Forecast Issues:
(Each monthly letter is 10 pages.)

July Financial Forecast (monthly letter)
June Financial Forecast (monthly letter)
May Financial Forecast (monthly letter)

And These Elliott Wave Theorist Issues:
(Each monthly letter is 10 pages.)

July Theorist (monthly letter)
 June Theorist (monthly letter)

Bonus: Subscribe now, and you'll also get Prechter's Wall Street classic book Elliott Wave Principle (a $29 value) FREE.

 

Start your risk-free 30-day trial subscription now>>

Shadowbox Shadowbox

Rating: - based on [12 rating(s)]
Rate this content:
  
 



FFSEWI's Financial Forecast Service equips you to think, trade and invest independently from the crowd. Here's what you'll get, risk-free:
  • Short Term Update -- Intensive forecasts and analysis 3x/week for U.S. stocks, gold, silver, bonds and the U.S. dollar.
  • Financial Forecast -- In-depth, intermediate-term perspective on U.S. stocks, gold, silver, bonds and the U.S. dollar.
  • Theorist -- Bob Prechter's monthly big-picture insights.
Put the Financial Forecast Service on your screen in minutes, risk-free>>
Free Video Course
Learn the Why, What and How of Elliott Wave Analysis

Financial media use news and economic events to explain market moves. Steer clear of this misguided approach. Take part in the Elliott Wave Crash Course to learn what really moves the markets.


© 2014 Elliott Wave International

The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.