The Fed Still Has On Its Beer Goggles

Danielle DiMartino Booth, Time

Coulda, shoulda, woulda. How different would the world we live in today be had the Federal Reserve shown restraint and practiced self-control in the current economic recovery? Where would the stock market be if Fed officials had not placated investors every time they threw a temper tantrum, demanding more stimulus?

We will, of course, never know the answers to these questions. But we can hope that the next generation of Fed leaders does have the wisdom and courage to push back against the market’s demands in favor of fostering long-term stability and economic growth.

Soon after ringing in 2014, a hilarious column by one of my closest friends, market analyst Peter Boockvar of the Lindsey Group, made me laugh out loud.

I forwarded “Beer Goggles” to Dallas Federal Reserve president Richard Fisher, who loved it when I shot great metaphors his way.

Not long afterwards, Fisher quoted Boockvar, giving what would become his most famous speech: “QE puts beer goggles on investors by creating a line of sight where everything looks good.”

For his “wine and martini” audience, the National Association of Corporate Directors, Fisher defined the term “beer goggles,” described in the Urban Dictionary as the effect that alcohol has in rendering a person alluring who one would ordinarily regard as unattractive.

“Things often look better when one is under the influence of free-flowing liquidity,” Fisher said. “This is one reason why William McChesney Martin, the longest-serving Fed chairman in our institution’s 100-year history, famously said that the Fed’s job is to take away the punch bowl just as the party gets going.”

Where are we now? Punch bowl, beer goggles. Different eras, same hangover.

Read full article

You May Also Like:

Trump, Tariffs And The Protectionist Temptation Phil Gramm and Mike Solon, The Wall Street Journal

Trump Approves $1.3 Trillion Budget, Averts Govt Shutdown Jason Devaney, Newsmax

John Bolton Is The National Security Advisor Trump Has Been Waiting For Paul Bonicelli, The Federalist

Facebook Flap -- Don't Overreact With Regulation That Will Destroy Social Media Innovation John Fund, Fox News

Is California Governor Jerry Brown Mentally Ill? Lloyd Marcus, American Thinker

Utah Just Legalized “Free-Range” Parenting [Watch] Elise Solé, Yahoo News

Obama Harvested Data From Facebook And Bragged About It. Why Are We Only Freaking Out About This Now? Declan McCullagh, Reason

Roseanne Defends Supporting Trump To Jimmy Kimmel: 'You All Went So F***ing Far Out’ [Watch] Tre Goins-Phillips, Independent Journal Review

Gun Control Activist David Hogg Draws The Line At Backpack Control John Sexton, Hot Air

Citibank Explains Their Plan To Curtail Second Amendment Rights Kemberlee Kaye, Legal Insurrection

Not A Joke: Congress Is About To Give Itself A Bonus Benjamin Arie, Conservative Tribune

Steven Pinker On Enlightenment, Our Complex Democracy, And Hope For Humanity [Watch] Rubin Report

Obama-Era Regulations Are Ruining Our Merit-Based Immigration System. Here's How To Fix It Ron Paul, Fox News

Even Protectionists Agree That Tariffs Will Make Us Poorer Colin Grabow, Foundation for Economic Education

National Debt, A War between Current And Future Generations? James R. Rogers, Library of Law and Liberty

For More go to the Home Page >>>

Join Our Email List



FreeMarket Central

Some titles recent, all recommended -

Special Video Feature

FreeMarket Central

Voices From The 2017 International Students For Liberty Conference


In Search Of History

The Reagan Tax Cuts Worked

Thanks to "bracket creep," the inflation of the 1970s pushed millions of taxpayers into higher tax brackets even though their inflation-adjusted incomes were not rising. To help offset this tax increase and also to improve incentives to work, save, and invest, President Reagan proposed sweeping tax rate reductions during the 1980s. What happened? Total tax revenues climbed by 99.4 percent during the 1980s, and the results are even more impressive when looking at what happened to personal income tax revenues. Once the economy received an unambiguous tax cut in January 1983, income tax revenues climbed dramatically, increasing by more than 54 percent by 1989 (28 percent after adjusting for inflation).


-- Daniel J. Mitchell,

Shadow Stats Snapshot

FreeMarket Central

ShadowStats alternate economic indicators are based on the methodology of noted economist John Williams, specialist in government economic reporting.

  • Unemployment:
    FreeMarket Central BLS: 4.14%
    FreeMarket Central Shadow Stats: 21.8%
  • Inflation:
    FreeMarket Central February Year-to-Year: 1.8% (CPI-U*)
    FreeMarket Central Shadow Stats: 9.9%

*[cpi-u is the Bureau of Labor Statistics inflation rate for all urban consumers]