2009-01-13 — cnbc.com
"Federal Reserve Chairman Ben Bernanke said Tuesday fiscal stimulus alone would not be enough to promote a lasting U.S. economic recovery and that further steps to backstop banks may be needed."
Bernanke wants everyone to understand crystal clear that we had better not go thinking we have thrown enough money into the bank garbage heap, and that now it might be time to go fix the real economy. No, instead, he's insisting we have not spent nearly enough, and must resurrect the old TARP 1.0 idea -- monetize banking bad assets directly. Presumably, nothing will be "too much" to spend on the failing banks.
Likely the vacillation this reversal represents, plus the inevitable quality hit to US sovereign debt, is why Treasurys are actually down on the latest ill wind from Bernanke's word-hole.
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