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

To: mishedlo who wrote (74188)	11/16/2006 11:26:05 AM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 110194

If consumers decide to stop borrowing the Fed can not force them to. If businesses decide to stop borrowing the Fed can not force that either. IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF If there are investable opportunities, people will invest. And relative to very low risk-free hurdle there are plenty of places to invest. Mish, please do tell, multi-year record high stock market a sign of global armageddon? Enquiring minds want to know?

To: mishedlo who wrote (74188)	11/16/2006 9:08:11 PM
From: bart13	Respond to of 110194

In fact I wan wondering if that is why Bernanke does not want to pay attention to M3 (unlike Trichet) because he can not do much about it. That's certainly possible... about the only thing I'm sure of is that they didn't want it public in order to hide what is being done with Eurodollars, and of course it itself. As you suggest the Fed is not powerless, but they sure as hell are not on control. Too broad an area, but I do maintain they are in general control in many areas. As you suggest the Fed is not powerless, but they sure as hell are not on control. If deflation was so easy to fight Japan would not have been struggling with it for 20 years. They did in 2002-3 and it worked, as per the stats. If consumers decide to stop borrowing the Fed can not force them to. If businesses decide to stop borrowing the Fed can not force that either. Finally the Fed can not create jobs. I can not think of any job creating activity that will replace the housing bubble if the Fed attempts to inflate once again. They can't force them of course but they can do lots of things which would make it stupid not to borrow. The Fed isn't and never has been in the business of creating jobs, but they sure did help a lot in creating huge quantities of construction jobs. No comment on investment banker jobs. <g>