Wednesday, May 03, 2006

Would You Want This Man's Job?



Ben Bernanke has some tough decisions to make. Should he continue to raise interest rates? If so, by how much? Unfortunately, it appears that he's damned if he does and damned if he doesn't.

If he doesn't raise rates enough, inflation could spiral out of control and have major implications for the general economy. Investors will lose faith in the U.S. dollar and Gold will continue its steady climb. If he raises rates too much, he risks causing the housing market to implode and wreaking havoc on the overall economy.

The next 6 months will be very interesting as we watch events unfold.