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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?


To: RockyBalboa who wrote (1680)2/11/2007 4:18:35 PM
From: Rarebird  Respond to of 6370
 
>>They apparently didn't even think about strangulating the money supply knowing the dangers of a restrictive policy.<<

Bernanke faces a US housing market which is breaking down in increased mortgage defaults and foreclosures. The very last thing he wants to do is to have to raise official US interest rates to defend the US Dollar. He would risk the US housing market breaking down entirely, with what that means for the entire US financial system.