zermux

Bernanke Desperate, Fed Out of Ammo

The FED is really, really scared about Deflation. The only way to defeat deflation is to make people believe that inflation is coming. Doing this is really hard, when you have a 54 trillion debt contraction happening. They need to act really irresponsible in order to make you think that Inflation is on the way. This is one of the many steps of irresponsibility.

Unfortunately they don't get it. This is not a simple recession, where there manipulation tends to work. This is big all-singing-all-dancing depression, probably larger than 1929-1933. Thier actions will inevitable fail - deflation will win - however when we do start to come out of it (2011) then it will be into hyperinflation. Think empty shelves and oil to expensive to use.

The manipulation of the Fed has gone on for so long that they have forgotten what their purpose was. Time for it to go and be replaced with gold standard and a free market.

Mortgage Refinancing Is Not the Solution

Good solid analysis. Thank you.

point 6 seems to reinforce the fact that much of the cause of this problem was Fannie/Freddie, CRA act/HUD, The FED and the regulators. The goverment would like to see the holes in the bubble sealed up and the bubble continue to inflate. I cannot see how there attempt to artificially set a floor on house prices can possibly work. The money they are borrowing, and then shreddding, on attempting to fix everything is fighting a 54 trillion dollar debt contraction.

Luxury Manhattan Real Estate Could Fall Another 50% - Barron's

Please could you keep this information really quiet. I know that House prices are going to revert to 1980 levels, however i would prefer for other people not to figure this out until after I have sold my house in Long Island.