Bernanke: I can make the yield curve bend to my will.That's pretty much what he said in a
2002 speech about preventing deflation.
Couple that thinking with other
talk of the Fed purchasing assets, and hence bolstering their prices, and you're moving far away from any sort of market and fundamentals - driven correction of the excesses of the past decade.
It could work. But it's hard to see how such blunt instruments can help sort out the messy, and complex, imbalances that we have to clear up.
posted by Quiddity at 7/08/2010 02:19:00 PM