tag:blogger.com,1999:blog-3098264341625381422.post2478355279602650324..comments2024-03-18T17:01:07.165-07:00Comments on The Provocateur: The Fed in Reverse?mike volpehttp://www.blogger.com/profile/02999118519606254362noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3098264341625381422.post-21753922511710589532010-02-10T14:06:49.150-08:002010-02-10T14:06:49.150-08:00There is no way that Brnanke will revers course. I...There is no way that Brnanke will revers course. It will not happen ever.<br /><br />There is an estimated $400-$600 trillion in derivatives on the planet half of which are in the us.<br /><br />The mere puff of a hint of interest rate increase and hoouses will be worth 10% of what they are worth today and the Dow will be at 500. <br /><br />There is no way out of this mess. The Fed has no practical way of draining liquidity out of the system because there are too many banks that are not under the Feds group of banks. The Fed has no authority over them. <br /><br />In addition, political realities dictate that the Fed keeps printing. They just will not stop.<br /><br />This reversal is a total pipe dream. As a matter of fact gold is due to hit $1500 in the next few months which means that the Fed is printing until the dollar will be confetti thorwn outside windows at a parade.Gilhttp://www.debttalkwithpmg.blogspot.comnoreply@blogger.com