Tuesday, February 1, 2011

If The Economy Was Improving On Its Own

Then why would the Fed say the following?

"The Federal Reserve could debate extending its bond-buying program beyond June if U.S. economic data prove weaker than policymakers expect"

- Kansas City Fed President Thomas Hoenig

Answer - because it is not improving.  The only growth is government induced NOT plain old demand.  Beyond June?  If the economy was this strong then clearly the training wheels could come off by June?  Don't drink the economy is getting better koolaid.


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