It doesn't take a rocket science to understand the consumer drives the US economy and without them it hurts the world economy and cripples the US economy. Low interest rates suckered consumers into buying real estate leading to a bubble. Inflation in the housing market is critical to get consumers moving again ... whether or not Bernanke or anyone is capable of inspiring confidence is irrelevant ... Real estate prices MUST go up in order to re-inspire consumer confidence ... simple as that ... whatever it takes including run away inflation must be done to get consumers back on board even if buying power is lost, the nominal values of real estate can not be allowed to fall and indeed must increase for both the sake of the consumer and the banks.

Everything else is secondary ... how long will take if it works remains to be seen ... but until loans are out from underwater the fed will stop at nothing to achieve this critical objective.

orgyl