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

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To: TH who wrote (104405)8/11/2009 5:19:51 PM
From: Sunny Jim5 Recommendations  Read Replies (1) of 110194
 
<<The question I'm thinking about is when does Ben flinch? And the danger for me is if I underestimate his excess again.>>

I don't think Ben will flinch. His answer to any problem is throw liquidity at it, and if things get worse he'll double down like a gambler. He is totally convinced that the problem with the Great Depression was that the regulators did not provide enough liquidity, and he has stated often that there will not be another depression on his watch. The flip side of that is that there will not be a real recovery until the debt bubble is purged from the system, and that isn't going to happen as long as the FED keeps buying everything that no one else will buy. Perhaps the best thing would be for Ben's watch to end.
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