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


To: TH who wrote (104405)8/11/2009 10:29:43 AM
From: bart13  Read Replies (2) | Respond to of 110194
 
Who knows about Ben... but my best guess is that he'll continue doing exactly as he has written about, unless the administration turns against him. The chances that will happen are extremely small.

Whenever things head back down again, there's little doubt in my mind that he'll start up the presses again - big time.



To: TH who wrote (104405)8/11/2009 5:19:51 PM
From: Sunny Jim5 Recommendations  Read Replies (1) | Respond to of 110194
 
<<The question I'm thinking about is when does Ben flinch? And the danger for me is if I underestimate his excess again.>>

I don't think Ben will flinch. His answer to any problem is throw liquidity at it, and if things get worse he'll double down like a gambler. He is totally convinced that the problem with the Great Depression was that the regulators did not provide enough liquidity, and he has stated often that there will not be another depression on his watch. The flip side of that is that there will not be a real recovery until the debt bubble is purged from the system, and that isn't going to happen as long as the FED keeps buying everything that no one else will buy. Perhaps the best thing would be for Ben's watch to end.