10 Reasons why there will be no Second Half Recovery in 2008: Federal Reserve, Housing, and Jobs.
Ben Bernanke is spending some quality time in Jackson Hole Wyoming. In his prepared speech, Federal Chairman Ben Bernanke talked about “reducing systemic risk.” The problem however is that as the credit crisis has rippled throughout the economy the mystique of the Federal Reserve has diminished greatly. The former Federal Chairman Alan Greenspan still had the magical pixie dust to convince the markets that the Federal Reserve always had the right recipe to keep the economy going forward. Monetary policy as many learn in their first college economics class is limited in the scope of what it can do. To a certain extent monetary policy can help when money does get tight but has little ability to help in providing solvency to a market that is largely insolvent. Once this perception is shattered, it is hard to recover.
I’ve gotten a few e-mails about uber bank failure IndyMac Bank and there […]
Original post by drhousingbubble
