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


To: GST who wrote (102374)3/25/2009 3:55:38 PM
From: patron_anejo_por_favor2 Recommendations  Read Replies (1) | Respond to of 110194
 
>>Ben is at the wheel of a car on a winding road, driving in a heavy rainstorm with bald tires and no headlights, going 90 miles per hour<<

You forgot that he just finished off a 5th of tequila, an ounce of coke and a pint of ether......and is now just getting into the blotter acid and mescaline.



To: GST who wrote (102374)3/25/2009 4:36:24 PM
From: benwood2 Recommendations  Read Replies (2) | Respond to of 110194
 
geez, that brought a flashback. When I was 11 and my family lugged a gigantic U-Haul trailer from Arizona to Eugene, Oregon, my dad quickly learned how a heavy trailer can whipsaw back and fourth when we reached a certain speed. Indeed,
it can force a towing vehicle off the road.

The solution, my dad learned, was to accelerate to eliminate the whip-saw, and then very carefully decelerate below the threshold again (~ 45mph).

So driving over McKenzie Pass in Oregon, all was just fine going uphill. But on the downhill, the trailer "pushed" and was much less stable, and twice it got into a whipping motion so fierce that the rear tires screeched. The two-lane road was narrow with 10' of snow on either shoulder and packed with traffic. We all thought we were gonna die when we eclipsed 60 mph at couple times. We lived, but it was one hell of a ride.

Bernanke is simply faced with the same job. Except the trailer is full of hundreds of tons of gold, and he's already up to 90 mph trying to "smooth things out."

But the main difference is... nobody in the back seat thinks they are gonna die! It's really amazing, like they are all drugged.



To: GST who wrote (102374)3/25/2009 9:13:27 PM
From: marcher1 Recommendation  Respond to of 110194
 
"...the car careens wildly down the road..."

hey, it's part of ben's planned chaos strategy. just throw back head and yell, weeeeeee...
(are screwed)



To: GST who wrote (102374)3/26/2009 11:29:31 AM
From: Jim McMannis  Respond to of 110194
 
I remember when Ben first got the job as FED chairman. He seemed oblivious to what the shadow banking and mortgage, CDO, SIV etc. market had done to the economy.

He actually started to raise rates to slow the economy down. Keynesian style. They he got hit in the face with a baseball bat.