Is the Bubble Self-Aware?
Andrew Huszar has a great editorial today at WSJ about his experiences as a part of the Fed’s TARP program. It is well worth reading, here. The commentary doesn’t add much new information for those of us who have been extremely cynical of the Fed’s role in financial markets, but it continues the ever-increasing awareness that the Fed has blown a bubble and is now trapped. The Bubble has become self-aware! It’s a very funny state of existence for the financial markets. I have little doubt that ten years after the system has blown up, officials will assert that “no one could have possibly foreseen…”