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

To: Rarebird who wrote (91074)	1/30/2008 8:38:56 PM
From: trotskyandlulu	Read Replies (1) \| Respond to of 110194

Bernanke is a bigger chicken shit than Greenspan, todays action and comment proves that in spades.

To: Rarebird who wrote (91074)	1/30/2008 9:11:38 PM
From: John Vosilla	Respond to of 110194

'The major problem in Big Ben's game plan is if the USD crashes' The bigger problem would be much higher long term rates on the back end if they occur before the housing/mortgage crisis is over..

To: Rarebird who wrote (91074)	1/31/2008 9:08:49 AM
From: 10K a day	Respond to of 110194

> Big Ben desperately wants to ensure that no major US financial institution goes broke<< If the mortgage and municipal insurers lose their AAA rating the little banks will fold. One after another pension funds could implode. Come on decider. Do something.

To: Rarebird who wrote (91074)	1/31/2008 3:39:59 PM
From: GST	Read Replies (2) \| Respond to of 110194

<That is why he has panicked and lowered rates 125 basis points in one week.> The dollar has two possible legs to stand on -- higher interest rates or higher growth. Ben is banking on higher growth to hold the nose of the clownbuck above water. If US growth does not go into the typical contract and then rapidly expand mode ala the recession will be short and mild -- if instead it goes into a mode of contract and flatline -- then Ben is screwed (and so are most of us) because he has shot his best bullets and cannot goose the economy with much else, and he can't raise rates to defend the dollar. Much depends upon the growth rate of the US economy next fall. We can have a stock rally and a steady dollar till summer -- then a wait and see till the fall. If the fall brings no recovery, then it is a long way down to reach realistic levels for the dollar, and the house of cards falls.