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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: GST who wrote (102374)3/25/2009 4:36:24 PM
From: benwood2 Recommendations  Read Replies (2) of 110194
 
geez, that brought a flashback. When I was 11 and my family lugged a gigantic U-Haul trailer from Arizona to Eugene, Oregon, my dad quickly learned how a heavy trailer can whipsaw back and fourth when we reached a certain speed. Indeed,
it can force a towing vehicle off the road.

The solution, my dad learned, was to accelerate to eliminate the whip-saw, and then very carefully decelerate below the threshold again (~ 45mph).

So driving over McKenzie Pass in Oregon, all was just fine going uphill. But on the downhill, the trailer "pushed" and was much less stable, and twice it got into a whipping motion so fierce that the rear tires screeched. The two-lane road was narrow with 10' of snow on either shoulder and packed with traffic. We all thought we were gonna die when we eclipsed 60 mph at couple times. We lived, but it was one hell of a ride.

Bernanke is simply faced with the same job. Except the trailer is full of hundreds of tons of gold, and he's already up to 90 mph trying to "smooth things out."

But the main difference is... nobody in the back seat thinks they are gonna die! It's really amazing, like they are all drugged.
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