Wednesday, July 21, 2010

The next economic shoe is about to drop

"It looks like our economy is in need of additional help," said Sen. Christopher J. Dodd (D-Conn.), chairman of the committee. "One of the issues I would like to explore with you today is whether the Fed can do more to help expand output and employment."

Sen. Richard Shelby (R-Ala.), the panel's ranking Republican, who has expressed greater concern about inflation than growth in the past, said that the shift toward considering options such as new asset purchases "is especially concerning because the purchase of even more long-term assets may channel credit to favored segments of the markets at the expense of others."

Dodd, decoded: "Now that Obama has signed the financial reform bill, fire up those printing presses and get your helicopters ready for some heavy lifting, Ben."

Shelby, decoded: "We're in the money. Time to stock up your bunkers."