Our good Federal Chairman Ben Bernanke seems to be in that situation himself. He has tried everything in his book of remedies to make this economy move. In essence manipulating every lever he has and as I opined in an earlier posting running out of bullets. Basically Bernanke has decided the US economy is constipated. Never mind the politicians in Washington, and specifically our President Obama, keeps promoting policies that are like cheese, bread, and fast food burgers anything that keeps things from moving. The policies recently put forward makes the people who could move the economy forward just stop doing anything for fear of being regulated or taxed or in essence being force feed some more cheese.
Today it looks like Bernanke wants to try his newest and likely only remedy left to make things move and that is selling his short term holdings and buying up lots of long term holdings. His hope is this will lower interest rates for mortgages and consumer items and make people buy them or maybe just move around some. Some interest rate sensitive stocks have sold off this morning just from concern about this action. Remember just last month Bernanke said he had given up trying to make things move and closed his medicine cabinet and gone to the beach. Now he has decided that maybe the bad smelling air coming from the lack of movement needs attention after all.
Personally I do not see this having an effect either since the same people needing to make the economy move will see this as just manipulation of the constipated economy and will still just sit there. Expect the bad smell coming from this economy to continue until November 2012 when maybe, just maybe, some real medicine can be applied. Anyone ever took castor oil?
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