Bernanke's Special Sauce
The stock market is toast. Unemployment claims shot up another 21k to nearly 400k and last week's figure, as always, was revised up. Everything is being taken out to the woodshed today. Wall Street has a big time problem. I call it the land of unintended consequences. Quite simply, the world is in debt up to it's eyeballs. While the vast amount of Main St. Americans don't have a clue just how bad of financial shape we are in, Wall Street does. So do I and a few others. The number one absolute mandate of the FED is to avoid DEFLATION at all costs. Deflation is supposed to be what happens when debtors get in over their heads. They are supposed to get their asses kicked and lose the assets they can't afford and very likely- had never paid for anyway. When deflation occurs, people living within their means and savers benefit. Because too few dollars are chasing giant debt piles. Money becomes more valuable. People with money can buy things cheap. Enter the FED. It