Zeev's Turnips Patch-No Politics (ZEEV)

[ieddyi]

I think the more interesting question is not p/l, but whether they should be doing it in the first place. Over the long term, any market that is manipulated to maintain valuations that can't be justified by fundamenatls will fail. It happened in the bubble 0f the late 90's and could happen again. The long term effects do great harm as bagholders get damaged. In "managing" the economy and the market the Fed creates a situation where it is prolonging the bubbles(housing, debt) that will burst and cause great systemic damage