So over the past few years interest rates have been slashed to zero, hundreds of billions if not trillions of dollars have been pumped into the US economy, debt ceiling has been raised a couple of times, and the list of measures taken to prevent total economic collapse goes on and on.
Interest rates are now to be set at their emergency lows for the next 18 months AT LEAST. Despite all their tampering and meddling the US is fighting a losing battle, and their collapse is inevitable IMO. I've read that stimulus runs at about an 8-10 month lag approx. and this would be evident in past instances when the fed has intervened.
Need i not remind everyone that all these fancy tactics are used to create GROWTH, and encourage people to SPEND, and even get investors to throw their money into stocks to lift(or hold steady) a falling(or crashing) market. It would appear that their attempts have simply kept their head above water, as opposed to what it is meant to(or usually) achieves. It doesnt normally take this long to bounce back from down-turns once certain actions are taken.
So is the US going to implode around early to mid 2012? They can't keep up their efforts forever, and if anything remotely negative was to occur all of the sudden, they have absolutely no where to go, they have played all their cards. So I just wanted to get others views on the US and where you might believe they are heading.
Will the bear finally take hold? or will they continue to teeter on the edge for the next few years, waiting for a miracle and somehow pull themselves out of this mess?
I'm hoping for some good arguments for the latter, if there is any.