Wednesday, March 28, 2007
"At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained," Bernanke said in prepared testimony to Congress' Joint Economic Committee.
Through 2007 Bernanke kept rates extremely high (almost 6%) in the erroneous belief that the sub prime crisis was not a crisis at all. I remember being apalled at his lack of foresight at that juncture. I also remember Jim Cramer fuming at Bernanke saying: "They know nothing...!!!" Because they had no clue of what was happening and had no intention of lowering rates. It was not till 2008 that he began dropping rates with extreme urgency seeing the possibility of depression. Bernanke´s Fed is in large part responsible for the intensity of the 2008-2009 collapse. He also erroneously predicted a strong US economy in the second half of 2011, seeing any weakness as temporay and due only to the Japanese earthquake and the disruptions caused in the supply channel. Bernanke in my mind, is the Herbert Hoover of Fed Chairmen.
Regarding Volcker, He was considered the savior of the American economy in the late 70´s when, as Fed Chairman, he raised rates to over 16% to combat and finally bring down a runaway inflation rate of over 10%.
"At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained," Bernanke said in prepared testimony to Congress' Joint Economic Committee.
Through 2007 Bernanke kept rates extremely high (almost 6%) in the erroneous belief that the sub prime crisis was not a crisis at all. I remember being apalled at his lack of foresight at that juncture. I also remember Jim Cramer fuming at Bernanke saying: "They know nothing...!!!" Because they had no clue of what was happening and had no intention of lowering rates. It was not till 2008 that he began dropping rates with extreme urgency seeing the possibility of depression. Bernanke´s Fed is in large part responsible for the intensity of the 2008-2009 collapse. He also erroneously predicted a strong US economy in the second half of 2011, seeing any weakness as temporay and due only to the Japanese earthquake and the disruptions caused in the supply channel. Bernanke in my mind, is the Herbert Hoover of Fed Chairmen.
Regarding Volcker, He was considered the savior of the American economy in the late 70´s when, as Fed Chairman, he raised rates to over 16% to combat and finally bring down a runaway inflation rate of over 10%.
Observation is the path to discovery.
Or, perhaps the battle speculators vs central banks is just occuring? 
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? I like these guys, as they have some interesting long long term approach. And they predicted gold fall (and the whole great after-Bernanke drop) pretty well. But recently they have bad luck. I dislike their entry point propositions too - when I started to observe them, the price either shoot through their limit orders or bounced their stop orders. But maybe they had better entries in the past. As always, I take sb else analysis with a grain of salt. But as for now, one would probably be profitable if followed each and every of their propositions, even though few last took some heavy beating. 
One could easily check when the USDs are getting heavily dumped overboard 
(Yeah, I know, we have USDX).
