The Federal Reserve | Big Ben strikes gold | Economist.com

The Federal Reserve | Big Ben strikes gold | Economist.com (subscription required)

Unlike some critics, we are worried not that he will go soft on inflation, but about other elements of ?Bernankenomics?. In 1999 Mr Bernanke co-authored one of the first academic papers arguing that central banks should not worry about rising asset prices unless they affect inflation. He thus provided intellectual ammunition for the Fed’s inaction during the late 1990s stockmarket bubble and the current housing bubble. But we, along with officials at the Bank of England, the European Central Bank and the Reserve Bank of Australia, reckon that he is wrong. Central banks should sometimes raise interest rates to curb asset-price booms.

And they were right… I’m in one of the most overpriced areas in the country, it’s great for renters… That Porsche TT or GT2 with amazing residual value is looking better and better (I like the GT3 the most, but the 997 GT3 will have an engine that exhibits the RMS problem, and its residual value sucks)… We only live once… LOL…

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