This ARTICLE is refreshing... a Fed Chair who actually admits he "doesn't know" something...!
Bernanke refreshingly admits he doesn't know why bonds are holding up so well...and rates are staying low?
Well perhaps, but I can suggest a few places to look for the answer...?
THE GREENSPAN HYPER-LIQUIDITY.... To wit: The Printing Press has been running 24.7.
And it's not just the FED...Try to Bank of Japan for another hyper-liquidity addict.
And the US trade deficit is forcing foreigners to be "savers"....they can't help it IF we keep stuffing their gullets with NEWLY PRINTED dollars!
The unique position of the dollar post-1980 is the reason "things" are holding up...so far.
But remember in the 1960's the Bretton Woods Dollar was also similarly favored...for a while.
Then came 1971...and all Hell broke lose...but in slow motion...and the Arabs took the blame...but it was LBJ and the Great Society Kongress that were the real culprits.
So too with the current situation... In macroeconomics things don't happen because the "should" they happen because they "must". The elites are so protective of the "old order of things" that their protection of the status quo extends way, way beyond were logic says a collapse should have occurred...
Thus it is with BERENAKE'S PARADOX!! AND GREENSPAN'S CONUNDRUM!!
P.S. But HERE Kellner hits the panic button
