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Bernanke Admits The Economy is Weak-If we Tighten the Economy Tanks

By
Services for Real Estate Pros with Smaulgld LLC

Smaulgld

 

“I don’t think the Fed can get interest rates up very much, because the economy is weak, inflation rates are low, if we were to tighten policy, the economy would tank.” Ben Bernanke testifying at the House Financial Services Committee last week.

 

With those words Ben Bernanke confirmed what we have been saying for months on the Smaulgld blog-the Fed can not exit from its quantitative easing (QE) program because to do so would cause the economy to collapse (we never used the word “tank”).

Read more about this stunning admission from the Chairman of the Federal Reserve.

 

Comments(4)

Donnie McKinney
Purchase Realty Group - Paducah, KY
Donnie McKinney CCIM, Purchase Realty Group

Oh, what a mess the Fed has gotten us into now. There's only one way out, and delaying it is probably worse than allowing it to move forward. It will be a huge mess.

Jul 22, 2013 12:37 AM
Louis Cammarosano
Smaulgld LLC - Hampton, NH
Smaulgld

yes this is short term  good news for real estate as the low rates will continue but the fed has created a frankenstein. The longer they put off the reckoning the worse it will be.

Been covering this at Smaulgld.com for a few  months

Jul 22, 2013 12:39 AM
Allen Lomax
Steed Talker Realty is with two hours of Tryon International Equestrian Center and we offer the best properties in th... - Sylva, NC
WNC Mountain Homes & Horse Farms Specialists

Big changes are needed but Washington sits on their hands as the financial industry wags the dog  -  making a killing for themsleves while killing the world economy.  It isn't going to be pretty.   

Jul 22, 2013 05:16 AM
Louis Cammarosano
Smaulgld LLC - Hampton, NH
Smaulgld

Washington and the Financial Industry are tied at the hip :-(

Jul 22, 2013 06:43 AM