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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (71225)	2/24/2011 6:04:10 AM
From: Chas.	Read Replies (2) \| Respond to of 217617

Africa is destined to be Exploited... Yesterday by the Dutch, the German, the English... Today by the Chinese... Tomorrow the Entrepreneurial African... Chas

To: elmatador who wrote (71225)	2/24/2011 12:49:36 PM
From: prosperous	Read Replies (1) \| Respond to of 217617

Yes I agree, FED is testing the limits of the system (or headroom available in the system) to which they can push it without serious consequences to US. This can be only done by pushing the system further out until we start seeing first glimpse of break down, the headroom can't be accurately anticipated as their models are not accurate and too complex to predict so has to be done based on "push and test" type experiment which Ben is engaged in. However, implicit in there is the assumption that Ben has stated once too often, that if the system starts coming apart they can first of all see that it is coming apart and take action within 15 minutes and raise rates and this will work 100% per Ben. However, FED's past record at sensing economic problems much less taking actions on them has been dismal. In the end, what they may end up doing is complete the experiment in pushing the system past the headroom available with domestic and foreign economies until we see a big break down (oscillate) because they didn't first take strong enough action in time and once the bigger damage is seen take too strong an action to correct it. At this point we are past the side effects of original problem in 2008 and we will be accumulating unintended consequences of FED actions for the next big economic bang. I am hoping Ben will have the sense to pull liquidity and raise interest rates at the right time, however, there in lies the gamble in timing it.