...this is not the kind of result Bernanke wants to see. More evidence that the monetary channel of "stimulus" is broken, something I have repeated here for years. This is a major reason why deflation is should be of primary concern to the U.S. economy, and its interesting to note the policy recommendations and "debates" concerning solvency continue to get first-page treatment from the media and the political class.
But my use of "the political class" should clue you in to why that is, dear reader.
So perhaps he is sleeping very well tonight indeed.