Bernake and Trichet seem to disagree....what's up with that?

By
Real Estate Broker/Owner with Blackburn Coastal Realty

The headline in yesterday's Financial Times was "Trichet calls for worldwide tightening" (the head of the European Union's Central Bank).  The Chairman of the US Federal Reserve, Bernanke, gave a radically different prescription when testifying before US congress the day before.  He called for even more stimulous (in effect, printing more money).

Why the diometrically opposed prescriptions?  Spend vs. Save?

My wife and partner, Jennie, usually sums things up in an easier to "get" phrase:  "everone works their pay plan".  She describes most human activity in this way...especially in the world of business and the business of politics.  Enlightened self interest has been the best description for most human history when viewed back from the future.

For now at least:  Europe makes stuff and exports it; The US makes money by buying stuff (2/3 of the US GNP is buying stuff).  Everyone works their pay plan.

Posted by

William B Blackburn, Broker

Blackburn Investors Realty, Tampa Bay, Florida

JD, GRI,CDPE,CIPS

www.BlackburnInvestors.com

727-322-2900

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Rainmaker
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Walter Grewe III
Long and Foster Realtors - Roanoke, VA
Realtor, SFR, A-REO, Roanoke Homes and Real Estate

Thanks for the informative post.

Jul 24, 2010 02:05 AM #1
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Rainer
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William Blackburn

Blackburn Coastal Realty, We work at the beach.
We live and Work at the Beach....we know the Tampa Bay Beaches
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