“Where does [The Fed’s] confidence come from?” demanded Stanley Druckenmiller recently.
Grant Williams has an answer:
Their “confidence” comes from a series of academic models and a lifetime spent studying ntheoretical finance and then applying it to real-world situations, often with disastrous effect.
The day these people admit to themselves (let alone to the public) that what they have believed to be foolproof doesn’t actually work, is the day they render pointless their entire lives’ work.