Fed Head

As we noted last week the Fed Head continues to paint a rosey scenario for the economy while ignoring systemic risks from the housing bubble, the trade/CA imbalances, the budget deficit, etc.

The Financial Markets Center ( http://www.fmcenter.org/ ) in its analysis of the Beige Book concluded the same:

"The July Beige Book suggests that inflationary pressures may be
abating in important regions and sectors of the economy. However the
survey remains largely silent about potential risks in the nation's
housing and mortgage markets. For same-day analysis of the central bank's main
report on regional economic conditions, go to:"

http://www.fmcenter.org/site/pp.asp?c=8fLGJTOyHpE&b=914043

For additional Beige Book resources: http://www.fmcenter.org/site/pp.asp?c=8fLGJTOyHpE&b=224808