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To: Fintas who wrote (46544)	2/21/2013 8:24:52 AM
From: Vendit™	1 Recommendation Read Replies (1) \| Respond to of 218856

Sorry but one last post for a while........ So what is up with this talk of a double dip recession / depression? Markets rattled by Fed policy concerns Indication that Fed may rein in stimulus hits stocks but dollar, safer bonds in demand Wall Street was poised to add to Wednesday's losses, with Dow futures and the broader S&P 500 futures down 0.3 percent. Many analysts think it's going to be a while before U.S. stocks can test their record highs. "The markets have priced in another 12 months or so of highly accommodative policy from the Fed, so if they pull the plug at this early stage you can wave goodbye to the S&P 500 and Dow 30 hitting those all-time highs," said Craig Erlam, market analyst at Alpari. http://finance.yahoo.com/news/markets-rattled-fed-policy-concerns-103047261.html QE5 Is Right Around the Corner as Recession Risk Rises: Pento Any golfer will tell you that the back nine, or the second half of an 18-hole course, is where the big action happens, and that is certainly true in finance. Right now on the financial front, with one negative quarter of GDP already in the books, we are halfway home to officially plunging the U.S. back into recession. It's a dire scenario, but one that investor/advisor Michael Pento says looks increasingly likely, given the mounting economic problems we've been faced with so far in the new year. "I believe that you have tremendous headwinds [hitting] the economy in 2013," he says in the attached video, which include increased taxes, rising interest rates and record gasoline prices for the winter driving season. "If you add all that up, it's easy to understand why the Walmart customer has pulled back." If he's right and we do continue to see growth slow, even Pento concedes that Federal Reserve Chairman Ben Bernanke would never just "sit on his hands and do nothing" while the economy implodes and unemployment rises. In fact, Pento says, should the double-dip become a reality, then he's certain Bernanke and the Fed would once again take the easy way out and "increase the amount of monthly debt purchases" from the current $85 billion to perhaps as much as $150 billion. It would certainly be a controversial move. However, it's one Pento considers to be "the most likely course of action," given the Fed's history of taking the painless route — at least for the short-term. That's because, despite Bernanke's assurances that he will be able to manage the biggest deleveraging in history, the Fed chief "doesn't understand that his balance sheet is unshrinkable." Pento adds, "Bernanke's devotion to inflation is deadly for the economy." To be fair, the Bernanke doctrine of endless intervention has, so far, not stoked inflation. However, Pento says "the minute he stops purchasing [bonds], interest rates will skyrocket with the 10-year yield expected to jump to 3.5%." http://finance.yahoo.com/blogs/breakout/qe-5-around-corner-recession-risk-rises-michael-121419261.html