Goldtent TA Paradise

Veteran Federal Reserve Exec Thomas Hoenig Warns We’re On A Trajectory For Crisis

1. pedro_deleon says:

   April 5, 2024 - 12:14 pm at 12:14 pm

   He was a relative good guy along with Lacker and Fisher.

   And he appears to sign on to all of Taggart’s concerns.

   But even with all the talk and agreement about how money drives decision making contrary to the public interest, there isn’t a shred of talk about how to stop that pre emptively. And there’s the rub.

   Grad school macro econ was all about Rules vs. Discretion.
   Discretion clearly fails.
   So … how do you design a Lock Tight Rule?
   That has to be the Answer.
   People are human, and cowardly, and inclined toward corruption.
   As he said, they come to DC wanting to change things, but end up Joining The Club.
   THAT PREMISE HAS TO BE THE FOUNDATION FOR REFORM.

2. Strider says:

   April 5, 2024 - 12:34 pm at 12:34 pm

   It’s odd that they become somewhat more truthful after they leave the Fed.

   • pedro_deleon says:

     April 5, 2024 - 12:50 pm at 12:50 pm

     I followed those three very closely during the GFC. Their views were clear even then also. But they never forged a majority (of the voting members), nor did they ever get the ear of Bernanke. Politics rules, driven by the big banks. As Hoenig clearly reiterated in this interview. QE returns when banks are on the ropes.

     Which they already are NOW.
     Hence gold.