David Rosenberg, Chief economist at Merrill Lynch (now part of Bank of America) talks about the Fed’s ZIRP (zero-interest-rate-policy) and the outlook of the housing market. He says Fed’s and government policies just set a cushion to the blow; nothing is guaranteed to work and this recession is nothing like post-War recessions.

David Rosenberg has been a long-time bear; but his predictions so far were all proved correct.

By the way, Rosenberg said days ago, “We are already in a Japan-like lost decade”.