For some reason, today pundits are appalled by the loss of Fed credibility only because Bernanke "surprisingly" U-turned on the taper announcement, catching virtually everyone offguard. Perhaps instead of that, the sophisticated financial community should focus on the core of the problem: the Fed's chronic inability to look even more than a couple of years into the future without being dead wrong about what transpires, even in the absence of a great financial crisis (which the Fed never could predict in the first place of course). Case in point, yesterday's most recently downward 2013 GDP projection. The chart ... (full story)