I was puzzling and thinking if I were Bernake what would I do? Many are crying raise the darn interest rates. Many are saying lower to give the companies a break. Bernake though does not strike me as an individual that leaves a statement. He strikes me as an individual that tries to do the right thing.
So if I were Bernake and his personality here is what I would do:
- Drop interest rates. Yes you read that right drop interest rates. He wants to do the right thing and give home owners a break. But he is not dumb.
- Tighten liquidity quite a bit. Let LBO’s and the likes squirm and struggle.
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Monday, Aug. 6, 2007
by Christian
Fingers crossed.
He should moderate his language, open the possibility of a rate cut, and send the markets higher.
I hope he keeps his mouth closed, talks about inflation and the US dollar, and keeps rates right where they are.
Wishful thinking? Perhaps. However, I just have a vibe that he isn’t the soft touch that people think he is. My impression is that he just might suprise a few people.
Time’s up Bernanke! - are you made of steel or of butter?
Good luck,
Phil
PS In what is becoming a theme, here is another idiot piece by Ben Stein, and here is another piece about bankruptcy and an instant 7000 people out of a job. Of course, you need to make up your own minds.
This post is for entertainment purposes only. No part of this post should be construed to constitute investment advice. The author is not an investment professional and assumes no responsibility for any investment activities you undertake. Prior to undertaking any financial decisions, you should contact an investment professional.
Monday, Aug. 6, 2007
by Phil