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http://www.cnbc.com/id/29837182
Long bond interest rates rise shortly after Bernacke stopped pushing them down by spending BIG government money. In effect, only Bernacke "benefited" from the short term interest blip he created.
Credit is like water. No matter how much you splash or push on liquid water, your hands cannot create a permanent hole in the water's surface.
Wanting to please their king, King Canute was told by his ministers & lords that he was so powerful, he could stop the incoming tide. In an effort to teach a lesson, King Canute had his throne carried to the sea shore, sat down in the lapping waves and incoming tide, and repeatedly tried to order the tide to retreat. Guess what? No luck, it kept coming in, just like always. Was this more embarrassing for the King, or his hyperbolic ministers and lords?
http://en.wikipedia.org/wiki/Canute_the_Great
It's unfortunate that Bernacke, Geithner, & Obama seem destined to re-learn King Canute's lesson.
Long bond interest rates rise shortly after Bernacke stopped pushing them down by spending BIG government money. In effect, only Bernacke "benefited" from the short term interest blip he created.
Credit is like water. No matter how much you splash or push on liquid water, your hands cannot create a permanent hole in the water's surface.
Wanting to please their king, King Canute was told by his ministers & lords that he was so powerful, he could stop the incoming tide. In an effort to teach a lesson, King Canute had his throne carried to the sea shore, sat down in the lapping waves and incoming tide, and repeatedly tried to order the tide to retreat. Guess what? No luck, it kept coming in, just like always. Was this more embarrassing for the King, or his hyperbolic ministers and lords?
Canute leapt backwards and said "Let all men know how empty and worthless is the power of kings, for there is none worthy of the name, but He whom heaven, earth, and sea obey by eternal laws." He then hung his gold crown on a crucifix, and never wore it again
It's unfortunate that Bernacke, Geithner, & Obama seem destined to re-learn King Canute's lesson.