Bernanke: "We Have Lost Control"

"We have lost control," said Hale, quoting Bernanke. "We cannot stabilize the dollar. We cannot control commodity prices."

I cannot stress how shocking this statement it is. The Federal Reserve, with a mere $900 billion dollar balance sheet, thought it could control, or even seriously manipulate, the currency and commodities markets? JP Morgan's footings are nearly twice as large. The Fed simply is not a big enough actor to have that sort of impact.

The fact that the Fed chair knows so little about market that he ever harbored the delusion that he could control them means he is even less knowledgeable than I feared.