Remember that time when Cramer melted down? Screaming over and over again that “they (the FED) have no idea”. The video below might refresh your memory.
As erroneous as it may sound, Mr. Cramer is right. The FED has no idea. Not before and certainly not now. Case and point, Regulation should be main tool against bubbles: Fed’s Mester
I would opt to use the macroprudential tools as the first line of defense, since they can be more targeted to the markets and institutions where the risks are emerging.
Earth to the FED, we are already in a massive bubble. This is equivalent to a drug dealer telling an overdosed junkie who is 2 minutes away from a massive cardiac arrest that he shouldn’t be doing drugs. I have said it before and I’ll say it again, anyone who believes the FED will bail this market out forever is playing with fire. It is the worst trade out there.
Now, if we had a bear who is just as passionate as Mr. Cramer, I am sure he would be screaming “They have no idea” right about now.
