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To: DebtBomb who wrote (141787)	8/19/2008 11:06:52 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

Bernanke will not have the luxury of waiting until after the elections. The system will not hold together that long. The duct tape is tearing, the band-aids aren't waterproof, and the string is stretched to it's limit. Something big is going to happen, and soon. One month away at the most. My guess from what's happening in the credit markets is that it will happen in the next two weeks.

To: DebtBomb who wrote (141787)	8/19/2008 11:14:20 AM
From: XoFruitCake	Read Replies (3) \| Respond to of 306849

"bernanke will end up raising rates to save the banks and the dollar" Can you expand on how does raising rate save banks? I thought what patch the systems together for now is the low short rate which allow all the bank to earn very good net interest margin on their mortgage asset. The plan is for the banks to raise capital during this relatively good interest rate environment and all the earning to replenish the money that vanish in the write off heaven. Raising rate will reduce substantially reduce banks earning and reduce the value of their asset.. How does raising rates save the bank?