Bernanke admits that he is "forcing people" into stocks...and out of cash and CDs...and eventually bonds...
Not only with zero interest rates...but also with money printing in huge amounts (QE2)...which is going directly to Wall Street investment banks...
Likely they are buying up stocks....hence the new bubble...but also spending some of that money to build plant and equipment in Asia...AND TO HIRE IN ASIA...!
Bernanke is in for a big surprise...
He seems to think that the US economy is somehow "normal" and not a Zombie...and that it will eventually respond normally to conventional macroeconomic stimulus theory...
This is obviously a mistake as anyone living in the real economy....can see...
Buying the "Bush Bottom" was a good idea because the FED is FINALLY admitting that it is directly supporting Wall Street at all costs now...
This is the Socialism for Capitalists that many people complain of...
The problem with the "new bubble" is that this one was DIRECTLY AND ADMITTEDLY caused by the FED...and they do not deny it...
We have come a long way from when the FED used to "take the punch bowl away...!"
These are surreal and strange times...
It sort of reminds me of the mentality that must have gripped Germany in 1945...when they thought the "phantom divisions" would save them...
The FED is playing the END GAME for all its worth...but to any outsider its clearly delusional thinking...
