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Discussion: (8 comments)

  1. morganovich

    in a period when the fed is buying a trillion dollars in assets a year and deliberately flattening the yield curve and keeping the short end anchored at zero, why would the st louis feed stress index provide an sort of meaningful reading? it’s all just based on rate spreads.

    garbage in, garbage out.

    1. Well, it’s trying to flatten the curve, but is the attempt really working? Can we adequately scrape out the effect of the Fed from the effect of capital looking for safety?

      Also, it’s possible to flatten the curve another way – just abandon ZIRP (that won’t necessarily flatten it, but then the twist and assorted shenanigans don’t necessarily flatten it either).

      That said, the Fed stress index didn’t feel any stress as the banks were getting stressed out. Not until the whole thing blew did the index measure stress. Unlike the VIX, it’s not forward looking, so I don’t see much point in it unless it’s an excuse to employ more economists. If I’m wrong about that, please let me know, but I don’t see the value in this thing except to draw me a picture of what I already know.

  2. Jon Murphy

    As much as I support right-to-work legislation, I hate that it is called that. “Right-To-Work” implies that one is entitled to a job (which one is not. For the majority of workers in America, employment may be terminated by either party for any reason. That, by definition, makes it not a right). I’d rather it be called a “right to choose” or “right to assemble” legislation.

    1. morganovich

      how about calling it the “freedom from collectivist coercion act”.

      :-)

      1. Jon Murphy

        Oh, I got one:

        “Freedom to Tell Others to Kiss My Ass” Act

        1. Jon Murphy

          That was a joke

          1. Washington’s marketing efforts (as far as titles go) is
            lacking to say the least. Remember the “Super Committee”?

        2. “I was sick of my job, sick of my wife
          Sick of my future and sick of my life
          So I packed up my car and I got some gas
          And told ev’rybody they could kiss my ass.

          Glenn Frey “Party Town” 1982

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