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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (3442)	1/20/2008 4:22:45 PM
From: Real Man	Read Replies (3) \| Respond to of 71412

Interesting article, and it looks like we are scroomed. nytimes.com "Bernanke is also firmly opposed to the notion that central banks should raise rates to prick bubbles in the stock market or elsewhere. In a paper written at the height of the dot-com mania, in late 1999, Bernanke and his friend Gertler argued that it is virtually impossible to identify a bubble before it pops. Many Wall Streeters dismiss this out of hand. Robert Barbera, the chief economist at ITG, remarked of 1999, “A child of 4 had to know it was a bubble.” Regardless, Bernanke maintains, the interest rate is too blunt a tool for addressing a narrow sector of the economy like tech stocks or even housing. Indeed, Bernanke says he believes that the Fed’s actions to cool off stock-market speculation in 1929 contributed to the Depression and was a grievous error. This view remains highly controversial. Asset bubbles are bound to burst, and various foreign central bankers argue that when they do, the economy suffers and people lose jobs. Ignoring them is hardly without risk."