After being wrong on residential real estate, Fed Chairman Bernanke is nervous over unemployment, commodity inflation, consumer, and business confidence
Marla Guthrie
Oct. 3, 2007

The academician is looking for help from all directions in trying to understand the most complex economic environment unfolding in front on his own tenure as the Federal Reserve Chairman. He is one of the best academicians in economics in the country. But his apparent hesitant behavior is making the investment community and the Wall Street very nervous.

Fed Chairman Bernanke is nervous over unemployment, commodity inflation, consumer, and business confidence. There are many conflicting signals from the economy. The economy is not into recession yet. But Bernanke was dead wrong on residential real estate. He told the US Congress in early spring 2007, that by the end of summer the unsold home inventory will adjust itself and the residential real estate market will get normal. But that did not happen. Fed could not anticipate the massive downturn in residential real estate. Fed never understood the existence of the subprime and other bubbles in the economy.

The biggest challenge in front of Fed is to contain inflation while accommodating a slowly decaying economy. Stagflation is the name of the game although Fed still resists terming it that. The residential real estate route is in first leg. It is now slowly spreading its troubles into commercial real estate and REIT. The REITs look attractive provided there are no more mortgage problems.

After being wrong on residential real estate, Fed Chairman Bernanke is nervous over unemployment, commodity inflation, consumer, and business confidence
Marla Guthrie
Stagflation is the name of the game although Fed still resists terming it that. The residential real estate route is in first leg. It is now slowly spreading its troubles into commercial real estate and REIT.
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Hybrid auto manufacturers looking into low intensity acoustic enhancement techniques for quiet Hybrid cars to warn blind people
Sunny Chopra
. The auto manufacturers are also concerned about the liabilities that can come from the lack of sound from these hybrid cars. They are looking into low intensity acoustic enhancement techniques. The concept came from the Aerospace technologies.
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The carry trade bubble is about to explode – time to buy Japanese Yen
Joe Weinman
....these same traders will unfold their positions, buy Japanese yen back and repay their loans – calling it ‘enough is enough’. That is exactly what happens when human greed dominates crazy behavior.
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Housing recession spreading into REITs and investment quality commercial real estate
Fred Day
The housing recession is accelerating. The unsold home inventory is skyrocketing. The mortgage debacle is just at its beginning innings. Something interesting is happening in the commercial real estate and REIT (Real Estate Investment Trust) sectors.
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Where will oil head if and when the economy tanks into deep recession?
Alan Hershey
The recession is in the horizon. But it will come very slowly. It may even take three years before the first negative GDP is registered. The biggest question is what happens to the developing economies and the oil market when the recession is hit?
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Lower ISM Non-Manufacturing index shows economy at this moment losing steam but not headed for a recession
Sam Adelton
The bond market is rallying as we predicted. But the fact is that the economy is not going towards recession. Lower ISM Non-Manufacturing index shows that the economy at this moment is losing steam but not headed for a recession.
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