This is interesting. With all commodities flaming past previous highs, the entire market being pumped by rope a dope QE, the economy showing very very very minor signs of some economic activity, which is being percieved as "robust" (
), will Ben be able to keep doing POMO and QE ?I don't think so. I think its impossible, because once oil gets over $150 bbl, its entirely game over for the US economy, if not the world economy.
There is no way in heck Ben can keep oil from busting the heck out of the consumer (who has by the way not become any stronger since 08.) So now we have trillions more in debt, the Fed still has toxic loans out the ying yang on its books, the banks are not any stronger (over 800 problem banks), 27% of all properties under water in the US (50% or more in places like Phoenix, and Nevada), and we are talking a whole new round of foreclosures ON TOP OF the already pending 2 to 5 million that will come as a result of current deliquencies. You add inflation to that, and oil prices going over $150, and the consumer is cooked. We are talking about folks on terribly thin ice.
Can Ben raise rates to cool off oil prices ? Sure. If he wants to implode the economy. Stocks would nose dive.
Can he just let oil prices run wild, keep interest rates low ? Sure. If he wants to implode the economy. And stocks would nose dive.
Hmmmn. Ben is between a rock and a very very hard place.
Do you see utterly stupid his policies/practices/theories/lying have been ?
http://finance.yahoo...-...set=&ccode=
