Ben Bernake explaining monitary policy

http://www.c-span.org/Events/Congress-Questions-Fed-Chairman-on-Inflation/10737419465-1/

I am sure many will not find anything new in this speech and answers. But it makes a difference to me when someone interprets what Bernake is trying to do vs Bernake explaining what he is trying to do.

Conclusion stays the same: We have a very powerful force....the Federal Reserve trying to prop up prices of any/every asset.....the only reason they are able to do so is because lenders are still willing to lend to US at a cheap interest rate and US still has a AAA credit rating. How long that will continue..... nobody knows.

I can't be an expert at economics but when such a powerful force is out there to create inflation then that is what will occur......and as Charlie says you can never just do one thing in financial markets..... there are always consequences...

New York Fed Macro data

http://data.newyorkfed.org/creditconditions/


Especially check out charts under Household Debt and Credit > " Consumer Debt" + "Delinquencies"


The data proves the fact that banks are holding back and not foreclosing on delinquent homeowners.

Also it shows an amazing growth in the amount of Home Equity debt and Student Loan taken on during the last 10 yrs. This might also explain the success of the online education universities plus the student loan delinquency rates.

I would recommend bookmarking this page as it has some excellent data.