Let me say one thing about the fed chairman. He is in a very tough spot.
\ Social Sec,Med /
Big entitilements \________________/
\ Total Bud /
\_Deficit____/And Trade deficits
\Lg com. /Bank of America FDIC stuff
\ Banks /
\ /Guy with a mortgage.
Our whole economy is like a big inverted ponzi scheme. The whole thing is built on printed money or credit if you will. Money that really doesn't exist when it's spent hoping it will exist some day in the future. (make sense?)
Starting at the top with the biggest culprits and then down to Joe Smo that got a mortgage or credit card in the last year or so.
The guys sitting on top are counting on the guys on the bottom to keep bringing more to the party to keep them afloat. But eventually like all pyramids the amount starts to dwindle. Works good for a while but not forever.
What your seeing now is the tip (where the arrows are} crumbling away a little.
Not to worry though because the Government has enough "extra dollars" tucked away to
fill in the little holes up until now. By basically printing more money.
As they do this in hopes that soon more people will jump into the scheme thinking things are ok it will take the pressure off for a little while longer. Therefore holding up the structure for a while longer.
Just like in a pyramid if the first guy has deep pockets he can keep it rolling for quite some time without unsuspecting Joe getting worried. Scary? You bet.
But Mr Bernenke is stuck. Years of this behavior inherited he has one of two choices. First print more to keep it afloat. Or let it all crumble in on itself.
Can you blame him? Didn't think so. America wake up.