[Peace-discuss] Being There With The Fed

[C. G. Estabrook]

	"Being There" With The Fed
	OCT 12
	Stan Collender

Remember the movie "Being There"?  This 1979 film was Peter Sellers' last.  The 
role he played  -- Chauncey Gardner -- was also the one he said was among his 
hardest because the character had no real personality.  He delivery had to be 
flat and virtually emotionless.

The key thing about Chauncey Gardener was that everyone who talked with him 
heard him say what they wanted to hear.  Although he spoke in broad 
generalities, people heard specifics about exactly what they were talking about.

It was hard for me not to think about Sellers' portrayal of Gardner when I read 
this quote from Ben Bernanke in an Ed Andrews story published in the New York 
Times last Friday:

“When the economic outlook has improved sufficiently, we will be prepared to 
tighten the stance of monetary policy and eventually return our balance sheet to 
a more normal configuration,” Mr. Bernanke promised.

I have one question every time a Fed chairman or governor makes a statement like 
this: WHY DOES ANYONE THINK THIS IS NEWSWORTHY?

Better yet...

Like any pronouncement from Chauncey Gardner, does this really say anything?
Isn't this almost right out of a monetary policy textbook rather than an 
indication of a change in Fed policy?

Isn't the Fed always prepared to tighten (or loosen) the stance of monetary 
policy when the economic outlook improves or deteriortate?

This is not to criticize either Bernanke or Andrews: One spoke, the other 
reported.  But who was "Being There" really about?  Chauncey or the people who 
heard what they wanted to hear?

http://capitalgainsandgames.com/blog/stan-collender/1164/being-there-fed