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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.38+2.7%Nov 10 4:00 PM EST

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To: TobagoJack who wrote (43972)12/16/2008 11:26:05 PM
From: prosperous1 Recommendation  Read Replies (1) of 217669
 
The US Fed is crazy providing a wrong solution with ZIRP policy. Those who think that Fed can pull out the liquidity at the drop of a hat when no longer needed are even crazier. If the Fed can't tolerate a modest recession to clear up the excess valuations at this point there is no hope they can/will do so in the future either what is changing at that point? the same pain medicine needs to be taken at some point, but fed would rather have it forced down on us.

This experiment may be headed for a spectacular disappointment down the road, how it achieves it remains to be seen. This is not a sustainable situation by definition and while Fed is bluffing they have lot of tools to reflate, at this point they are at the end of the road with all reasonable tools, any other methods have huge side effects and people should now be worried more about the solutions than the original problem, the US has become "Bernake's revolutionary financial research lab", these experiments are very high risk with unknown side effects and we all are the mice on which they are being performed.
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