[quote=no_such_reality]
Slightly different. Yours implies they are acting like a child getting denied something they want but won’t really affect them.
Mine implies they’re addicted and going to have real problems when the juice stops.
I think the later is true and not the former.[/quote]
I’m not sure I made any such implication, you may have inferred it nonetheless. It will have some effect. But what Bernanke said was that he won’t pull back on the juice until there is other juice to take it’s place. (higher employment, higher GDP growth, higher inflation) Bernanke’s predictions of future growth of these measurements are consistent with recent Fed history. I suspect overly optimistic. Anyone having watched the Fed reduce projections time and time again over the last 3 years should recognize that. The only slightly bullish thing that he actually said is that the economy faces diminished risk of deflation. In another context, that’s like a doctor telling a patient his likelihood of survival has improved from 10% to 20%. Better than it was, but hardly pretty.
It’s a good day for bond shorts to close out, reverse, and be prepared to do another 180 over the next 90 days. I think its gonna get back up to 138 or 139.
