One of my favorite fund managers, Steven Romick of FPA wrote a compelling letter about the Federal Reserve, and the risks of current policies. I agree with everything that he says in terms of Ben Bernanke and the huge risks that he is taking. The only thing that I don’t believe Romick adequately covered was the complete incompetence of both this administration, and Congress in promoting business and the economy in general. Ambiguous regulations and restrictive capital restraints, combined with costly healthcare and tax policies have frozen business spending. Anxieties pertaining to the Fiscal Cliff and our government’s ability to deal with it are severely impacting business confidence. Because of these anti-growth measures, Bernanke has had to resort to these ridiculous measures. It is like a dysfunctional driver slamming on the gas and the breaks at the same time. The car of our economy is out of control, and while it might not seem like that now because of our government’s cheap access to capital, there are really scary implications hiding in the midst if we don’t take aggressive action soon.
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