Tuesday, 16 December 2008

Domo Arigato, Bernanke-San

One quarter of one percent. If your mortgage rate were one quarter of one percent, the cost to pay for your home to full mortgage retirement would be about a third of what it probably is. Zero interest rate policies worked staggeringly well for Japan in the 1990's. Perhaps Bernanke-San should study a little more about the land of the Rising Sun when he can. Why not just take it down to zero? You've got a quarter percent left before your monetary policy gun is completely shot. That's like keping a CO2 cartridge that's got about 1 gram of CO2 left in it - sure it's in there, but who can you even piss off with it?

Two months ago people scoffed at the thought that unemployment would crest over 6.8%. Last night I read in The Economist (great reading for Z1-2 workouts on a trainer - maybe not so much on rollers) that without Obama's 2.5mm job creation magic, it is likely to get to about 9.5%. All those times when they said "there's no way this is going to get anywhere near as bad as the Great Depression."

We, my friends, are in for an ass paddling.

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