To: TigerLikesRooster
What is the right thing? Paradoxially, it is to withdraw liquidity and by doing so force the bad debt into the open where it does (and must) default. We'll see. Mr. Bernanke is an expert on the Japanese responses to their bubbles bursting and subsequent problems. My own guess is that Mr. Bernanke will use their methods, not Mr. Denniger's.
16 posted on
01/03/2009 7:53:39 AM PST by
snowsislander
(NRA -- join today! 1-877-NRA-2000)
To: snowsislander
The Japanese response exascerbated their problem, but it didn’t destroy Japan because they has HUGE savings and they had a healthy trade surplus.
We have neither.
31 posted on
01/03/2009 11:06:50 AM PST by
ovrtaxt
(It is better for civilization to be going down the drain than to be coming up it. ~Henry Allen)
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson