Fed keeps eyes out for speculative bubbles

Anyone remember the kid that blew milk from their nose when made to laugh unexpectedly in grade school lunch period? Couple more headlines like this one, and I'll be that kid.

Let's keep it simple. It's too early for housing, despite all the cheerleading, to bottom. Within a few years, it will be a buy of a generation, but until then no one, and I mean no one, will see a bubble until well after the fact.

Federal Reserve officials at their March meeting stressed the importance of making sure record-low interest rates don't feed new speculative bubbles in stocks or other assets.

Fed's pledge to keep rates low for an "extended period" doesn't mean a fix period of time.

S&P Homebuilders (HB) to Gold Ratio:


Source: finance.yahoo.com