via FT Alphaville by Tracy Alloway on 12/20/10
Found by the creative writers at JPMorgan Asset Management — a letter to Santa, from a boy (one 'Ben') who lives in the Washington DC area of the United States:...
“Dear Santa,
It’s that time of year once again and I would like to ask you for some very special presents for Christmas this year. I know it is difficult to ask for too much at this time, given we have only just emerged from the credit crisis, and how kind you were last year in giving me this special QE magic set. I have been a good boy this year, although I know I may have upset some friends in my FOMC gang, who didn’t want me to use the QE set when we did.
So I am hoping that you and the elves might give me the following presents? First, I would like you to give me low levels of bond volatility. I am worried that volatile bond markets will ruin my QE magic tricks, as I would like people to become less risk averse and to be encouraged to buy assets, thereby allowing equity and house prices to rise. I don’t mind too much if bond yields rise a bit, but I am worried about disorderly markets. My uncle Alan tells me that 1994 was a difficult year for bonds (though he doesn’t really understand bond volatility, as he wasn’t around in 2008) and that they ultimately unsettled equity markets, so any help would be much appreciated. Second, could you please give me higher house prices in the US? If people feel wealthier, then they are more likely to spend more and I would like to help secure economic recovery, which I continue to worry about. Third, could you please give me a nice strong new renminbi, costing closer to USD 0.20 rather than the current cheap and cheerful version that exchanges for USD 0.15? I am always grateful for the hard work done by your elves but do notice that a lot of the toys you drop down the chimneys each year are made in China. Perhaps next year you will be able to deliver more American-made toys? Fourth, could you please give one of your QE magic sets to my friend Jean-Claude? I really don’t want him spoiling our fun and tightening liquidity in Europe. Lastly, talking of liquidity, would you like your usual glass of wine left with the mince pies by the chimney?
Thank you very much Santa, best wishes, Ben”
