It was a big weekend for the Feds. That’s Feds – plural.
On Saturday Roger Federer beat Tomas Berdych in three sets for the Dubai Championships title, his 78th tournament win over the course of his career, but his first since last Spring.
Then, on Sunday, 22 year-old Grigor Dimitrov, aka “Baby Fed” for the resemblance of his playing style to Roger Federer’s, won his second tour title at Acapulco, beating Kevin Anderson in three sets, after having beaten Andy Murray in the semi-finals.
On Friday, the third Fed – that’s the Federal Reserve – was in the news, too, with headlines designed to raise everyone’s blood pressure, but with none of the relief brought by an athletic contest cleanly won or lost. Washington Post: “Why the Fed’s Taper Could Cause a Market Meltdown.” Forbes Magazine: “The Fed Poisons the Stock Market.”
How shrill the cries when there’s big money at stake! Central banks have evolved into institutions whose activities disproportionately funnel money into the global financial system rather than into the economy in which most of us reside, and the positive feedback loops created by their activity cause perpetual instability.
It is entirely possible the The Fed’s “taper” could cause a market meltdown. Or not. There isn’t an economist in the world, nor a computer algorithm, that can factor in all the inputs that control for how humans’ desperate desire to acquire money will affect their behavior.
At least “Papa Fed” Roger Federer and “Baby Fed” Grigor Dimitrov know what game they’re playing.