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The Un-Credible Fed - Problems too big to bailout
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This Link is located in the Public Channel Housing Bubble and Bear Links.
Posted by ian 2 years 25 days ago (minyanville.com). Views: 175
Tags: housing bubble federal reserve |
| Related Tags: credit crisis gold inflation wall street economics peter schiff banks |
It takes many years for a certain psychological mindset to plant roots, and generally that state of mind is resistant to change. But it does appear that psychology regarding inflation has changed, and that the Fed is in the process of losing the bond market. One has only to look at the explosive rise in 30-year fixed-rate mortgages to see that the Fed' campaign of easing has backfired. A knowledgeable friend in that business tells me this is one of the worst periods ever, as those rates have just rocketed higher, even as the Fed has eased.
Greenspan and the Fed created this mess by picking the wrong interest rate -- and by continually bailing out every problem created by excess money-printing with more excess money-printing. But we're finally at the moment in time where the problems are too big to bail out (periodic upside flurries in stocks and belief in magic wands notwithstanding).
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