That D Word

Depression risk might force U.S. to buy assets

NEW YORK (Reuters) – Fear that a hobbled banking sector may set off another Great Depression could force the U.S. government and Federal Reserve to take the unprecedented step of buying a broad range of assets, including stocks, according to one of the most bearish market analysts.

That extreme scenario, which would aim to stave off deflation and stabilize the economy, is evolving as the base case for Bernard Connolly, global strategist at Banque AIG in London.

This article is two days old. I ran across it today.

I have to wonder how this reporter came to speak to this person. What was the original discussion supposed to cover? Did the subject happen to mention the hypothetical steps of an economic meltdown — and the reporter ran with that, discarding everything else that was discussed?

I have no faith in Bernanke. But I have to wonder about the motives behind this story. This is a European talking. A European financier. They like their strong Euro.

Explore posts in the same categories: C.O.A.T. - Money

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