bearfund

What Bernanke Had To Say

Ecklebob, the save-and-invest economy kicks in right after all the banks hang out their "CLOSED" signs. When credit is cheap and plentiful, why save? I used to save, too, but with yields at 3% and prices rising at 10%, why bother? Today's savings accounts are denominated in ounces, bushels, and barrels. When the banks close or the Fed gets its head out, it'll be time to liquidate those positions and start investing again. And if Congress wants to stop people from buying commodities, everyone will just buy gold instead. If they try to stop that too, there are always foreign exchanges. They can't stop people determined to preserve their wealth from evading monetary policies determined to destroy it. The only answer is to change those policies.