Pity poor Paul – Volcker, that is.

Mr. Volcker, brought on board to great fanfare, turns out to be the Trophy Wife of the Obama economic team.  He gets trotted out whenever the President needs to show off, but clearly, Mr. Volcker is to be seen and not heard.

 

The former Fed Chairman appears to be the only member of the current economic team who Gets It – and the only one that no one is listening to.

 

Financial professionals are notoriously light on their grasp of the history of their own industry.  Those who shape the industry itself are often the promulgators of the fallacy that This Time It Will Be Different.  With leadership like this, can we expect the investing public to have a clue?

 

Volcker, a man who very much lived through the financial and political turbulence of dealing with the near destruction of the US economy, keeps repeating over and over, like a quietly inebriated man during a noisy cocktail party, “Bring back Glass Steagall. Bring back Glass Steagall.”  The other partygoers look at him, deem him not danger to himself or others, and step around him as they head back to the punchbowl for a refill. 

 

Volcker is anything but inebriated.  He sees clearly just how badly all this is likely to end.  But he has been the Daniel in the lions’ den of politics and has no illusions about his own power to remove the liquor.

 

“Mr. Volcker scoffs at the reports that he is losing clout,” reports the New York Times (20 October, “Volcker Fails To Sell A Bank Strategy”).  Asked about being sidelined in the current debate, Volcker responded, “I did not have influence to start with.”

 

Stay tuned for the next episode of the new reality show, “Desperate Fed Chairmen.”

 

 

Moshe Silver

Chief Compliance Officer

 


Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more