BE CAREFUL WHAT YOU PREPARE FOR

Worry that the Federal Reserve led by Chairwoman Janet Yellen has now switched from what the Fed is going to do to does the Fed have any idea what to do if they make a mistake.

Today is the day the Fed is expected to remove the patience safety net beneath the interest rate trapeze it's been flying around on for some time.

Some fear the move will "inject uncertainty back into the financial markets." The key word in that sentence is back. Except for those who believe the Fed knows what it's doing, the truth is the uncertainty never went away.

Fear mongers like the Financial Times economist and main fear jockey, Martin Wolf, claim the problem isn't excessive QE-caused low interest rates but a "managed depression." Wolf writes this beauty in today's column: "Rising risk aversion might be another reason why real rates on safe securities have fallen."

With nearly everyone from hedge funds to mom-and-poppers scouring the dark, four corners of the earth seeking some yield, it's clear Wolf sees with bias through what is a clear prism of bureaucratic bumbling and fumbling.

The truth is nobody including the Fed knows whether they've overstayed their presence at the party that's now been going on seven years. With few exceptions this has been a market that volatility has been as absent from as many members of Congress at vote taking time. It's there version of  don't ask, don't tell.

The Chicago Board of Options Exchange's volatility index sits around 17 for this year so far, slightly up from last year's average 14, but below its average of 21 between 2009-2014. If you're a hedge fund guy or gal you've been screaming for a little volatility most likely. If you're an MSM meme shill you probably need to check out the term in Webster's.

Investor hand wringing about guidance and so-called transparency or the paucity of such has its own nightmarish elements. Last December, Chairwoman Yellen, taking a page from former President Bill Clinton, claimed the "patience promise" meant the Fed would keep rates the same for the next two Fed meetings. That was a shift away from her previous "considerable time" nonsense.

This prelude to an interest rate hike has been more anticipated that the Second coming. Many investors are long a stronger dollar as a result. The potential fly in the investment ointment is recent sluggish economic data.

The Fed and its clutch of bureaucrats is one of the globe's biggest fence straddlers. It's part of their "on-the-other-hand" DNA. The problem with fence sitting, however, is sooner or later the fence falls down.  

Be careful what you prepare for.