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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Fiscally Conservative who wrote (44932)1/22/2006 11:13:23 AM
From: mishedlo  Read Replies (2) of 116555
 
" Who's to say Bernanke doesn't come in and cut rates several times at 50bp per shot? How long would it take to crank the mania right back up?"

Housing is toast.
The FED can cut but it can not direct where the next mania would be.

Gold?

Possibly and that would not do a damn for the economy.
Japan failed to reignite housing after it burst. I fail to see how or why the FED would be successful either.

The money would do one of two thing or some combination thereof.
1) form a new bubble elsewhere
2) just sit with no borrowers and no lenders

Mish
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