This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

Bernanke is now between the “rock” of recession and the “hard place” of the soft dollar, with economic growth slowing and core inflation at 0.3% and rising. The Fed historically wants a core inflation at +0.2%, giving an annual rate of +2.4%, which is considered “price stability”. A rate of +0.3% puts us in the +3.7% annual rate zone, well above the Fed’s comfort level.

Should this trend continue, this is a worst-case scenario of slowing growth and rising inflation. In that case, there’s nothing left for the Beard to do but pray (but those puppy-dog eyes will not get you anywhere):

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

The Beard has a subtle message for the banks:

The amazing Michael Shedlock over at Mish’s Global Economic Analysis recently posted an article about leveraged buyouts and the effect of the current credit situation. Among many insights, he quotes an article from Financial Times that says:

Ironically, the Federal Reserve’s dramatic 1.25 percentage point cut in interest rates in January contributed to Harrah’s problem, because loans are floating rate and with benchmarks such as Libor dropping, returns to investors fall proportionately.

It seems that Bernanke agrees with the Fly’s sentiments. The Fed is clearly trying to save the economy from recession, and hang everyone else. The banks are getting no free ride here.

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

Maybe it’s just me, but that beard seemed familiar…

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This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

Fade the Beard and get shaved. Behold:

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

The Dow is spitting distance from going green on the day. Behold your Saviour:

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com