Bernanke’s Hobson’s Choice

Fed Chairman Ben Bernanke faces a Hobson’s choice in picking between lower and higher a interest rates. On the one hand you have deflation, a screwed dollar, and an outside chance at preventing a recession (or worse); on the other hand you have a stronger dollar, but a screwed economy, and a continuing credit crisis.

Great post on the subject here.

Comments

  1. In prison, we had a term for what Bernanke is doing: the Slow Puncture.
    http://wcvarones.blogspot.com/2007/11/slow-puncture.html

  2. It’s interesting to hear Jim Rogers (Bloomberg Interview) on this subject. He has gone on record calling Bernanke a nut for reducing rates.