I found this quote from the FED minutes in November in an article in Financial Times today.
"US Federal Reserve officials have expressed concern that near-zero interest rates could fuel "excessive risk-taking in financial markets" but believe the possibility of such an outcome is "relatively low", minutes from its November meeting show".
Sorry! But don't they live on the same planet as we do?
Gold and T-bills are clearly displaying bubble shapes (sorry I can't load up any charts today, but you know how it looks). The biggest problem with bubbles are trying to identify the top, but everybody knows when the top is finaly in place...
Why does the statement come as a surprise to me? It shouldn't FED couldn't see the housing and debt bubbles evolving right in front of them, so how should they be able to see, that the currently way too low interest rates will create excessive risk-taking by the major banks that have recived huge amounts in different bail-out packages.
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