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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (239519)	2/27/2010 1:05:39 AM
From: Perspective	Read Replies (2) \| Respond to of 306849

That was very interesting. For all the blather about how positive Bernanke's speech was for the markets, I never heard anyone focus on the "we will not monetize the debt" line. I'm not sure if I believe Bernanke when he says that. He may actually believe that he's telling the truth, but the economy will likely soon force them to increase their intervention efforts. I personally thought that the monetization would ultimately end only when the global appetite for U.S. paper had been exhausted, and not a moment sooner. We may have hit that point; China may have started calling Bernanke's bluff. But there are a couple of other possibilities: Bernanke may actually believe that the economy is recovering well enough that he withdraws the Fed support - or they may have looked at the past years' efforts as I have, concluded that they failed to improve conditions, and decided that we must try plan "C". That seems to be what Denninger is implying. The ultimate end result - inflation or deflation - will depend to some extent upon the courses of action taken by a small handful of policymakers. It may also be that the outcome to a large extent will depend upon the collective actions taken by the public at large. I think one must keep an open mind and a watchful eye to see how the policymakers and the public react. The outcome is uncertain and will depend upon decisions made in the near future. To date, the heavy hand of the free market and public at large appears to be outweighing the most fervent desires of the policymakers. All BB has bought is higher stock and junk bond prices, and those alone will not address what ails us. `BC