From The Daily Reckoning:
Flavor of the Month: the Double Dip
By Rocky Vega
02/21/10 Stockholm, Sweden – Bernanke’s been scrambling to bring the current record-low interest rates to levels that are more sustainable. Last week he took a first small step, and the Federal Reserve raised the discount rate by 25 points. It’s the first tiny tug before the whole Band-Aid gets ripped off… which is going to hurt a whole lot more.
The problem is that the Band-Aid was applied to an economy suffering from an illness better resembling Ebola than a paper cut. The cure, if you can call it that, never fit the condition. Finally getting a look at the true state of the economy, underneath the shoddy government propping, is bound to drag the nation down again.
lol the only thing that got raised was the emergency discount rate, and i am expecting housing prices to bottom out once they have fallen from 25% to 35%.
