Hedging Against Looking Stupid

122854053_bernanke_388803cAmidst of world wide central bank efforts to keep stock prices elevated and moving higher, public figures especially current and past Federal Reserve Chairs are starting to comment that stocks are over priced. Remember these people all have genius plus IQs. The world is full of bright people doing stupid things. Why do smart people do stupid things? For one stupidity and intelligence are completely independent of one another. Stupidity is simply maladaptive behavior.

If a brilliant person wants something to be true bad enough, he will see it as true the same as will a moron. Chances are though Federal Reserve members are doing stupid things in keeping with the political agendas they are carrying out. Nothing is too stupid to do if personal gain is great enough. At higher levels economists get paid to lie so stupidity may not enter the picture. The price is right and accepting money is rational.

Still, the wealth effect that has been created never has had a prayer of benefiting the entire country. Do both Ben Bernanke and Janet Yellen really believe QE is a good deal? There is not a chance they do but you will never get an honest answer.

Just watch what happens. More and more statements will be of the kind that point to stocks “possibly being overpriced.” Look for others besides the Fed people to start throwing in their words of caution. Doing stupid things for profit is a whole lot different than doing stupid things because one is an idiot.

Expect more of these kinds of statements. They are hedges against looking stupid. Stupid for personal gain makes sense in a professional sense but no one wants to wear the label.

As for politicians, as the economy denigrates and the financial markets collapse, they will practice the art of not knowing. All will be innocent as in deprived of meaningful information.

Make no mistake. The Federal Reserve folks knew what they were doing.00_logo_1

(Visited 4 times, 1 visits today)

About Fantasy Free Economics

James Quillian is an independent scholar,free market economist, teacher of natural law, teacher and originator of the Fantasy Free approach to economics. James Quillian does not believe lies. Contact: news@quillian.net
This entry was posted in Daily Comments and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of