FLASH: Bernanke having closed-door meeting with homebuilders who f*cked America. So when does he meet Americans f*cked by the homebuilders?

If Bernanke and the Fed cut rates (when they should be raising) to bail out the hedge funds, banks, housing gamblers and homebuilders who made poor decisions these past few years, then all bets are off, especially when it comes to the US dollar, which will immediately and irreversibly melt down.

If the Fed cuts to bail out the bad decisions of homebuilders, housing gamblers and hedge funds, even after Bernanke expressly ruled this out, the moral hazard implications will be off the charts. Kinda like giving in to hostage takers - it only causes more hostage taking in the future.

What will Ben do? Moment of truth HP'ers.

I think he's a puss, run by the bankers and Bush, and cuts 1/4. He'll say he's cutting because of the downturn in the economy due to the housing crash, and softening of the "official" government inflation reading, but we'll all know he'll be cutting to bail out the builders, hedge funds and banks.

But even a cut, and as the economy melts down there'll be cut after cut after cut (see Japan), it won't matter. Housing prices will continue to fall, demand will continue to shrink, the dollar will plummet, and this Ponzi Scheme will come to its rightful and natural end.

It hath been foretold.

Builders Meet With Fed to Discuss Mortgage Crisis - Industry officials are likely to lobby for an interest-rate cut and assistance for struggling homeowners.

Some of the same builders whose companies created the excess inventory that helped push the housing industry into its current downturn are reportedly meeting today behind closed doors with Federal Reserve chairman Ben Bernanke to discuss what can be done to prevent owners from losing their homes to foreclosure.

The actual agenda of the meeting, however, is not completely clear, as NAHB - which arranged this meeting through its High-Production Homebuilders Council - and spokespeople for several large home builders declined to answer questions about it.