Thursday, December 22, 2011

The Economy Turns

James E. Miller emails and writes:
Looks like you nailed it.
He includes a link to a Bloomberg story which says:
Federal Reserve Chairman Ben S. Bernanke finally may be catching a break: His easy-money policies are showing signs of speeding up the economic rebound...

Housing may be nearing a bottom as record-low mortgage rates tempt more buyers into the market and confidence among homebuilders climbs to the highest since May 2010. Autos, another part of the economy sensitive to interest rates, are reviving, with carmakers reporting in November their highest sales pace in more than two years.

Banks also are starting to put more of their money to work, expanding commercial and industrial loans last quarter by the most since Lehman Brothers Holdings Inc. went bankrupt in September 2008.
What these Keynes economists still don't realize is that the price inflation is about to get fierce. The turning manipulated economy is too obvious to ignore at this point, even by guys who have bad (Keynesian) economic models. I expect Nouriel Roubini and even Paul Krugman to crack soon and admit the economy is turning. And don't (hee hee) expect Krugman to mention deflation in his start of the year forecasts.


  1. Looks like we may get to see the Fed's "exit strategy" sooner rather than later. Boy, I can't wait to see what that is going to be...

  2. I wonder what sort of impact this may have on the elections. If this manipulated recovery continues, this might improve Obama's chances of getting re-elected. Or will inflation hit high enough levels to offset any relief this false recovery may bring? How long until this one pops?

  3. I predict Bernanke's exit strategy is gonna involve a hell of a lot of binge drinking, crying, hours spent in the fetal position, and tearful phone calls to Jamie Dimon and Lloyd Blankfein begging them to buy back the mortgage crap he took of their balance sheets years ago.

  4. SOPA vote delayed until 2012 - Dec. 22, 2011

  5. @J.F.:

    Hmmm, maybe involves no extradition treaties????