I'm not sure how he'll handle it. Hopefully he won't jump up to raise rates too high. But, then again, he does need to get the housing bubble under control. Can we re-vote or something and have Gordon Brown and the BoE instead of the Republicans and Greenspan, and start again from 2000? Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
As we discussed in another thread a while ago, it is very much possible that, in a symetrical twist to today's conundrum, long term rates will go up when short term rates are brought down again, triggering a deep vicious circle of slower growth.
Form my perspective in the banking market, I can tell you that banks are beginning to do really stupid stuff. Any downturn will have massive consequences on many companies, and on the health of the financial sector, leading to retreat, investment collapse, and tight spending by all, accompanied for the weakest by bankruptcies. In the long run, we're all dead. John Maynard Keynes
