The Fed is coming to the rescue of the weak economy this week with buckets of dollars. As the dollar continues to spiral down to 15 year lows Fed Chairman Ben Bernanke will be buy treasures with our tax dollars to try anything he can to offset the foolish policies coming out of Washington these days. The message has been out there for quite a while now and on Wednesday we will see what Ben has in store for us. As gold is jumping and the US dollar is dumping, the Fed will be injecting reserves into the system since they cannot lower interest rates any further at this point.
Will this mark the top of the stocks recent run to 2 year highs? All I know is commodities are soaring as a result of this printing money non stop since the Lehman crisis. I do feel that stocks are very extended with the rising commodity costs that will squeeze margins going forward. Will it help our real estate markets? I don't see how it won't as the materials for building houses continue to scream higher. If the foreclosures are coming off the market and the materials used in housing continue higher home prices will go up eventually.
Branch Manager, Highlands Residential Mortgage, Ltd., Palm Beach Gardens Florida
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