A good MD knows that when a particular treatment doesn’t work, it’s always prudent to try something else. Dr. Bernanke (not an MD but a PhD) and the FOMC said yesterday however that they will continue with the same treatment, if need be, towards the economy, that of cheap money, but with bigger doses even as the patient responds less to the medicine. A real Dr. would change the antibiotic if the 1st one stopped working. Another case in point, the MBA said that even with historically low rates, refi’s fell to a 6 week low and purchases dropped to a 3 week low. My last cynical comment of the morning is this, the Fed is punishing creditors and savers thru the desire to inflate in order to bail out overleveraged borrowers. Sorry for another Fed rant. The $ index is breaking below 80 for the 1st time since mid Mar and gold is at a fresh high. ABC confidence fell 3 pts to a 6 week low. Irish 5 yr CDS is rising to a new record high.
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