KC Fed president fears a Weimar Republic in the making with zero interest rate policy.All the rivers run into the sea, Yet the sea is not full;
—Ecclesiastes
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Do you need more proof the situation in the banking system is more or less out of control? Kansas City Federal Reserve president, Thomas Hoenig, says a continued zero interest rate policy is as likely to be a negative as a positive.
Of course, none of this makes the Bernanke helicopter fan club very happy. Yet theirs is not so much a love for endless liquidity from the Fed, but rather keen recognition of a frail confidence game whose condition needs dissension like a hole in the head.
—Tom Chechatka
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