THE BEAR'S LAIR
Bernanke's bad-choice moment
The US Federal Reserve's failure to introduce a much tighter monetary policy since the turn of the century has left it with a choice now of cutting rates in the forlorn hope of saving the financial skin of US homebuyers and risk increased inflationary pressures - or raising rates and risk a spiral of collapsing money supply reminiscent of the US in 1931-33. The chance of Fed chairman Ben Bernanke pursing the better alternative this week? Approximately zero. - Martin Hutchinson