Messrs Draghi and Yellen are both speaking today and visions of sugar plums are drifting in front of the market’s eyes, blinding it to cold reality. David Einhorn, president of Greenlight Capital, was on Bloomberg TV a few days ago and provided a synopsis of his March 26 dinner with ex-Fed Chairman Bernanke.
“I got to ask [Bernanke] all these questions that had been on my mind for a very long period of time, right? And then on the other side, it was like sort of frightening because the answers weren’t any better than I thought that they might be.”
Yup. The reality is that these people are clueless. They are like witch doctors, acting on superstition and myth, brandishing chicken bones. When does the market say to itself, “Y’know, I’ve been sitting here listening to these folks, one after another, for years and they’ve been consistently wrong. Why do I bother?” Be very scared.