Let’s Twist Again!

Recently by Bill Bonner: The Disconnect Between Household Wealth and GDPGrowth

Come on everybody! Clap your hands! All you looking good!

I’m gonna sing my song It won’t take long! We’re gonna do the twist and it goes like this:

Come on let’s twist again, like we did last summer! Yeaaah, let’s twist again, like we did last year!

Do you remember when, things were really hummin’, Yeaaaah, let’s twist again, twistin’ time is here!

Heeee, and round and round and up and down we go again!

Well, Société Générale was wrong. No QE. Instead, dear reader, it’s the Chubby Checker monetary strategy.

Reuters is on the case:

(Reuters) – The US Federal Reserve on Wednesday delivered another round of monetary stimulus and said it was ready to do even more to help an increasingly fragile US economic recovery.

The central bank expanded its “Operation Twist” by $267 billion, meaning it will sell that amount of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire this month, will now run through the end of the year.

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Bill Bonner is the author, with Addison Wiggin, of Financial Reckoning Day: Surviving the Soft Depression of The 21st Century and The New Empire of Debt: The Rise Of An Epic Financial Crisis and the co-author with Lila Rajiva of Mobs, Messiahs and Markets (Wiley, 2007). His latest book is Dice Have No Memory. Since 1999, Bill has been a daily contributor and the driving force behind The Daily Reckoning.

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