Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: XBrit who wrote (63389)	6/11/2006 11:45:22 PM
From: UncleBigs	Respond to of 110194

Bernanke told congress that he would pause even if inflation was outside the comfort range because of the lagging effects of rate hikes. He also told a member of congress that he believes the cpi overstates inflation. I take Bernanke at his word. He is worried about inflation but is comfortable pausing at this point to give the rate hikes time to take effect. He'll hike 1 more time and go on pause. He speaks 3 times this week. Do you really think he's going to hammer the stock market 3 more times in a week with his tough talk? 1 more hike makes a 30 basis point inversion of the yield curve. 5.25% is more than enough to toast housing. A nasty recession is a near certainty by late 06 early 07 and lasting longer than most think possible.