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Saturday, November 20, 2010

THERE IS FRESH CRACKS IN THE DAM

BERNANKES METHOD OF FIXING THE ECONOMY IS TO KEEP PLUGGING THE CRACKS:
The problem with that method is if the dam burst there wont be anything left to rebuild it. While the Fed keeps recementing the cracks new ones keep reappearing. There are the problems with Ireland and Portgale which could affect the world economy but there is also the extended housing crisis which has a life of its own.
The fact that many mortgages werent properly recorded during the refinancing boom could mean a whole new crisis that could cost the banks billions more. And since the government is the largest stockholder in many of those banks that means billions more would come out ot the treasury.
So if Ben uses up all the cement to keep plugging up all the new cracks there wont be anything left to rebuild when the dam finally does burst.