So the Fed has spoken. They know their low rates aren’t good but hey, don’t worry, they’ll be able to spot any bubbles and do something about it.

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, for a second straight meeting was the sole member to oppose keeping that pledge. Analysts saw Hoenig as concerned that holding rates too low for too long could feed some new speculative bubble in assets such as stocks or commodities.

Fed members noted the importance of closely monitoring financial markets and institutions to help detect risks at an early stage. They cited, in particular, the need to monitor asset prices and loan levels.

Information collected by Fed staff hasn’t revealed significant threats in the financial markets or widespread high-risk-taking, the minutes concluded. Still, Fed officials said they would be on the watch for any such threats.

Does anyone at the Fed remember Alan Greenspan and his Irrational Exuberance speech? That was in 1996. I vividly remember the Fed stepping in an stopping the Tech Market bubble from happening. Oh wait. That never happened. The head of the Fed even said it was a bubble and they did nothing.

Housing market anyone? Anyone not believe that 2005 – 2008 wasn’t a housing bubble? The Fed controls interest rates and yet they too could not see that bubble happen.

The Fed has missed two of the largest bubbles of all time, which happened right under their noses. But now, this time’s different? Sorry, homey don’t play that game. I remember the tech bubble. They all said this time was different. It wasn’t. And this won’t be either.