Fed unleashes greatest bubble of all: John Kemp

Javaman

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Thu Dec-18-08 12:37 PM
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Fed unleashes greatest bubble of all: John Kemp

http://www.reuters.com/article/reutersComService4/idUSTRE4BG3C920081217

Like the sorcerer's apprentice, Federal Reserve Chairman Ben Bernanke and his predecessor Alan Greenspan have unleashed a series of ever-larger asset bubbles they cannot control.

Now the Fed's decision to cut interest rates to between zero and 0.25 percent, coupled with a promise to keep them there for an extended period, and the threat to conduct even more unconventional operations in the longer-dated Treasury market risks the biggest bubble of all, this time in the U.S. government debt.

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