On the Fed's exit strategy

Fed chief Ben Bernanke will appear before the House Financial Services Committee tomorrow to talk about how the central bank might mop up the trillions of dollars they've injected into the economy, something that, in the view of many analysts such as Kirby Daley of the Newedge Group, is quite premature.

Daley's comments about the U.S. housing market seem to be spot on, including the prospects of elected officials launching new programs during this election year to reduce loan balances for underwater homeowners. Of course, this will have all sorts of unintended consequences and none of them are likely to be good.