This is kind of a two-part OMS. I first provide a link to a recent short interview I did with Yahoo on the new Fed 6.5% policy. I think that policy is going to turn out badly. Think quagmire and Vietnam, as the Fed's exit plan depends on everything working perfectly. I get the model and the reasoning, which David Zervos outlines in the second part of this OMS (see PDF). But I also share David's misgivings, though perhaps for different reasons. I owe him a call, as this is critical.

(Let's hope the day doesn't come when we post a video with Bernanke saying, "Actually, the Fed has no exit strategy.")

http://www.mauldineconomics.com/videos/category/news-media/2012

Now, please turn to the PDF from David Zervos, chief economist at Jeffries and Company.